49 U.S.C. State of Good Repair Program

Vol. 81

Tuesday,

No. 30

February 16, 2016

Part II

Department of Transportation

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

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Federal Register / Vol. 81, No. 30 / Tuesday, February 16, 2016 / Notices

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

This notice announces
changes in the Federal Transit
Administration (FTA) programs in
accordance with Federal public
transportation law by the Fixing
America’s Surface Transportation
(FAST) Act, which authorizes surface
transportation programs of the
Department of Transportation (DOT) for
Federal fiscal years (FY) 2016 through
2020. This notice provides preliminary
implementation instructions and
guidance for the new and revised
programs in FY 2016, announces the
apportionment for programs authorized
and funded with FY 2016 contract
authority, and describes future plans for
several discretionary programs. The
notice also includes locations of FY
2016 apportionment tables and
unobligated (or carryover) funds
allocated under the discretionary
programs from prior years.
FOR FURTHER INFORMATION CONTACT: For
general information about this notice
contact Kimberly Sledge, Director,
Office of Transit Programs, at (202) 366–
2053. Please contact the appropriate
FTA Regional Office for any specific
requests for information or technical
assistance. FTA Regional Office contact
information is available on FTA’s Web
site: www.fta.dot.gov.
An FTA headquarters contact for each
major program area is included in the
discussion of that program in the text of
this notice. FTA recommends that
stakeholders subscribe on FTA’s Web
site (www.fta.dot.gov) to receive email
notifications when new information is
available.
SUPPLEMENTARY INFORMATION:
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SUMMARY:

Table of Contents
I. Overview
II. FY 2016 Funding for FTA Programs
A. Federal Transit Law as Amended by the
FAST Act Authorization, and FY 2016
Appropriations
B. Oversight Takedown
C. Previously Authorized Funding
III. FAST Act and FY 2016 Appropriations:

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Highlights of Changes
A. Focus Areas
1. Safety Authority
2. Transit Award Management System
(TrAMS)
3. Between Car Barriers for Rail Systems
4. Public Transportation Innovation
5. Innovative Procurement (Section 3019)
6. Tribal Transportation Self-Governance
Program (Title 23 Federal-Aid Highways
Program)
7. Discretionary Programs
a. Transit-Oriented Development Planning
Pilot Program (Section 20005(b) of MAP–
21)
b. Passenger Ferry Grant Program (49
U.S.C. 5307(h))
c. Innovative Coordinated Access and
Mobility Pilot Program (49 U.S.C. 5310
Section 3006(b)of the FAST Act)
d. Public Transportation on Indian
Reservations (49 U.S.C. 5311(j))
e. Grants for Buses and Bus Facilities
Competitive Grants (49 U.S.C. 5339(b))
f. Low or No Emission Grants (49 U.S.C.
5339(c))
g. Positive Train Control (Section 3028 of
the FAST Act)
B. Definitional Changes and New
Definitions
1. Associated Transit Improvement
2. Capital Project
3. Value Capture and Value Capture
Revenue
C. Repealed and Consolidated Programs in
FTA’s Authorization
1. Research, Development, Demonstration
and Deployment (49 U.S.C. 5312)
2. Transit Cooperative Research (49 U.S.C.
5313)
3. Technical Assistance and Standards
Development (49 U.S.C. 5314)
4. Bicycle Facilities (49 U.S.C. 5319)
5. Human Resources and Training (49
U.S.C. 5322)
D. Cross-Cutting Programmatic
Requirements and Changes
1. Metropolitan and Statewide Planning
2. Provision of Non-Fixed Route Paratransit
Under ADA
3. Buy America
4. Leasing
5. Project Management Oversight
6. Incremental Cost of Art and NonFunctional Landscaping Prohibited
7. Use of Geographic Preferences in Hiring
IV. Program-Specific Information
A. Metropolitan and Statewide
Transportation Planning Program (49
U.S.C. 5303 and 5305(d))
B. State Planning and Research Program
(49 U.S.C. 5304 and 5305(e))
C. Urbanized Area Formula Program (49
U.S.C. 5307)
D. Fixed Guideway Capital Investment
Grant Program (49 U.S.C. 5309)
E. Enhanced Mobility of Seniors and
Individuals With Disabilities Program
(49 U.S.C 5310)
F. Formula Grants for Rural Areas Program
(49 U.S.C. 5311)
G. Rural Transportation Assistance
Program (49 U.S.C. 5311(b)(3))
H. Appalachian Development Public
Transportation Assistance Program (49
U.S.C. 5311(c)(2)

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I. Formula Grants for Public Transportation
on Indian Reservations Program (49
U.S.C. 5311(j))
J. Public Transportation Innovation (49
U.S.C. 5312)
K. Technical Assistance and Workforce
Development (49 U.S.C. 5314)
L. Public Transportation Emergency Relief
Program (49 U.S.C. 5324)
M. Public Transportation Safety Program
(49 U.S.C. 5329)
N. State of Good Repair Program (49 U.S.C.
5337)
O. Grants for Buses and Bus Facilities
Program (49 U.S.C. 5339)
P. Growing States and High Density States
Formula Factors (49 U.S.C. 5340)
Q. Washington Metropolitan Area Transit
Authority Grants
V. FTA Policy and Procedures for FY 2016
Grants
A. Automatic Pre-Award Authority To
Incur Project Costs
B. Letter of No Prejudice (LONP) Policy
C. FY 2016 Annual List of Certifications
and Assurances
D. Civil Rights Requirements
E. Consolidated Planning Grants
F. Grant Application Procedures
G. Grant Management

I. Overview
This document contains important
information and interim guidance about
new FTA programs and changes to
existing FTA program statutes (49
U.S.C. 5301, et seq.) as amended by the
Fixing America’s Surface Transportation
(FAST) Act (Pub. L. 114–94), signed by
President Obama on December 4, 2015
and effective on October 1, 2015.
In addition, this document provides
full year apportionments for FTA
formula and discretionary programs that
are available in FY 2016 pursuant to the
Consolidated Appropriations Act, 2016
(Pub. L. 114–113) (FY 2016
Appropriations Act). It also contains
information on how FTA plans to
administer its transit programs in FY
2016 and how funds appropriated and
allocated prior to FY 2016 will be
treated.
This notice highlights important
changes to FTA programs, including
new discretionary programs. It describes
definitional changes and cross-cutting
requirements, identifies repealed
programs and provides specific
information about FTA’s statutory
programs as amended by the FAST Act.
For each FTA program, FTA has
provided information on the FAST Act
authorized funding levels for FY 2016,
the basis for apportionment or
allocation of funds, requirements
specific to the program, period of
availability of funds, and other program
information. A separate section provides
information on pre-award authority and
other requirements and guidance
applicable to FTA programs and grant

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administration. Finally, the notice
includes references to tables on FTA’s
Web site that show amounts
apportioned under the FAST Act, and
approximately $1.04 billion in
unobligated or carryover funding
available in FY 2016 from prior years
under certain discretionary programs
carried out in accordance with prior
authorization acts.
Information in this document
includes references to the existing FTA
program guidance and circulars. Some
information may have been superseded
by new provisions in the FAST Act, but
these guidance documents and circulars
remain a resource for program
management in most areas. FTA intends
to revise the guidance and circulars, as
appropriate, with an opportunity for
public comment where necessary.
II. FY 2016 Funding for FTA Programs

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A. Federal Transit Law as Amended by
the FAST Act Authorization and FY
2016 Appropriations
The FAST Act is the new five-year
surface transportation authorization that
provides FTA an authorization level of
$11.78 billion in FY 2016 and a total of
$61.56 billion from FY 2016 through FY
2020. The FAST Act realigns several
transit programs, provides significant
funding increases specifically for bus
and bus facilities, creates several new
discretionary programs and changes
several cross-cutting requirements. The
law continues and expands FTA
authority to strengthen the safety of
public transportation systems
throughout the United States.
The FY 2016 Appropriations Act
makes appropriations at the full-year
level for FY 2016 through September 30,
2016. In section 5301 of title 49, United
States Code, Congress specifies that
funding is available for the development
and revitalization of public
transportation systems. Current funding
availability for each program is
identified in section IV of this notice
and in Table 1 located on FTA’s FY
2016 Apportionment Web page.
B. Oversight Takedown
The FAST Act modifies section
5338(f) 1 to provide for the following
oversight takedowns of FTA programs:
0.5 percent of Metropolitan and
Statewide Planning funds, 0.75 percent
of Urbanized Area Formula funds, 1
percent of Fixed Guideway Capital
Investment funds, 0.5 percent of
Formula Grants for the Enhanced
Mobility of Seniors and Individuals
1 All references to ‘‘section’’ herein refer to
sections of Chapter 53 of Title 49 of the United
States Code, unless otherwise specifically stated.

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with Disabilities, 0.5 percent of Formula
Grants for Rural Areas, 1 percent of
State of Good Repair Formula funds,
0.75 percent for Grants for Buses and
Bus Facilities, and 1 percent of Capital
and Preventive Maintenance Projects for
Washington Metropolitan Area Transit
Authority funds. The funds are used to
provide necessary oversight activities,
such as oversight of the construction of
any major capital project receiving
Federal transit assistance; to conduct
State Safety Oversight, drug and
alcohol, civil rights, procurement
systems, management, planning
certification, and financial reviews and
audits, as well as evaluations and
analyses of grantee-specific problems
and issues; and to generally provide
technical assistance and correct
deficiencies identified in compliance
reviews and audits.
C. Previously Authorized Funding
Funds allocated or apportioned in FY
2013 through 2015 that remain
unobligated and for which the program
has been repealed or its activities have
been consolidated with other programs
under Chapter 53 will continue to be
subject to the program and eligibility
requirements that existed prior to the
enactment of FAST and to new crosscutting requirements found in section
III.D. of this notice. These programs are
as follows:
• Section 5312, Research, Development,
Demonstration and Deployment
• Section 5313, Transit Cooperative
Research Program
• Section 5314, Technical Assistance
and Standards Development
• Section 5322, Human Resources and
Training
For programs that are continued
under FAST with amendments, the
provisions of the FAST Act now apply
to all unobligated funds from FY 2015
and prior years, as well as to FY 2016
funds. These programs are:
• Section 5305 Planning Programs
• Section 5307 Urbanized Area Formula
Grants
• Section 5309 Fixed Guideway Capital
Investment Grants
• Section 5310 Formula Grants for the
Enhanced Mobility of Seniors and
Individuals with Disabilities
• Section 5311 Formula Grants for
Rural Areas
• Section 5339 Grants for Buses and
Bus Facilities
• Section 20005(b) of MAP–21, Pilot
Program for Transit-Oriented
Development Planning

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II. FAST Act and FY 2016
Appropriations: Highlights of Changes
The FAST Act furthers several
important goals of the DOT, including
safety, state of good repair, performance,
innovation and program efficiency. The
FAST Act continues FTA’s expanded
authority to strengthen the safety of
public transportation systems
throughout the United States. The Act
also continues to emphasize restoring
and replacing the Nation’s aging public
transportation infrastructure. The level
of overall funding is increased for
transit projects by 17 percent over the
five-year authorization. Most notable is
the increase to the Bus program where
funding increased 62.5 percent in FY
2016 and nearly 90 percent over the
five-year timeframe. In addition, the Bus
Discretionary Grant program is
reinstated and includes a set-aside for
low or no emission vehicles and
facilities.
A. Focus Areas
1. Safety Authority
The FAST Act amends 49 U.S.C. 5329
to provide FTA with expanded
authority to strengthen the safety of
public transportation systems
throughout the United States by
developing safety standards for the
public transportation industry and
granting FTA the authority to
administer temporary Federal safety
management and oversight if a State
Safety Oversight Program is not being
carried out in accordance with section
5329, has become inadequate to ensure
the enforcement of Federal safety
regulation, or is incapable of providing
adequate safety oversight consistent
with the prevention of substantial risk
of death, or personal injury. If there is
a failure to develop an adequate State
Safety Oversight Program, FTA may
withhold Federal funding from the State
safety oversight program and from the
urbanized area or State in which the rail
transit system overseen by the State
Safety Oversight Agency is located.
Additional information on FTA’s safety
authority and the requirements under
section 5329 can be found in section
IV.M. of this notice.
2. Transit Award Management System
(TrAMS)
FTA’s Transportation Electronic
Award and Management (TEAM) system
closed for grant making and grant
management on November 30, 2015.
TEAM is currently available on a readonly basis and FTA is planning to
transition to the Transit Award
Management System (TrAMS) on
February 16, 2016.

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When deployed, TrAMS will offer a
more efficient, user-friendly, and
flexible tool to award and manage grants
and cooperative agreements. It will
provide more useful grant information
and will strengthen the integrity and
consistency of the grant award and
management processes.
FTA will continue to provide training
and technical assistance on using
TrAMS. Training will include live
webinars as well as training videos and
guidance and technical assistance
documents. Information on upcoming
training will be posted at http://
www.fta.dot.gov/TrAMS.
Recipient and grant award
information and attachments as of
November 30, 2015 will migrate from
TEAM into TrAMS. Individual user
account information and TEAM user
roles (as of November 30, 2015) will also
migrate into TrAMS. Once TrAMS is
deployed, recipients will be able to
manage TEAM awarded grants as well
as create new applications in TrAMS for
FY 2016 and prior year funding.
As reports contain cumulative
information, FTA waived submission of
monthly (for certain grantees) and
quarterly reporting requirements for
December, January, and February. The
first monthly milestone progress reports
(MPR) and Federal Financial Reports
(FFR) will be due in TrAMS by March
30, 2016. The MPR and FFR reports for
quarterly reporters will be due in
TrAMS by April 30, 2016.
3. Between Car Barriers for Rail Systems
All rail systems operating in a levelboarding environment must have
between car barriers. FTA’s Acting
Administrator issued a Dear Colleague
letter related to between car barriers on
September 15, 2015. See: http://
www.fta.dot.gov/newsroom/12910_
16573.html.
The Acting Administrator’s letter
focused on light rail systems, but rapid
rail, commuter rail, and automated
guideway systems are also required to
have between car barriers. Specifically,
49 Code of Federal Regulations (CFR)
sections 38.63, 38.85, 38.109, and
38.173 require between car barriers.
Generally the requirement is, ‘‘Where
vehicles operate in a high-platform,
level-boarding mode, devices or systems
shall be provided to prevent, deter or
warn individuals from inadvertently
stepping off the platform between cars.’’
The regulations do not prescribe a
particular type of between car barrier.
Rather, they state that suitable devices
include pantograph gates, chains, and
motion detectors. The purpose of this
provision is to stop an individual from
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open vehicle door and then stepping off
the platform. It should be noted the
regulations do not define what
constitutes a ‘‘high platform,’’ but the
regulatory text links ‘‘high-platform’’ to
‘‘level-boarding mode’’ and must be
considered in conjunction with other
key parts of the regulations, which
clearly point to the relationship between
platform height and entrance to the
vehicle floor. In a level-boarding/
platform environment without betweencar barriers, the hazard of falling to the
track bed exists whenever a rail system
operates trains of more than one car.
This represents a physical risk to the
traveling public as well as a financial
risk to a transit agency.
4. Public Transportation Innovation
The FAST Act continues to
emphasize innovation and renames
FTA’s research program at 49 U.S.C.
5312 to ‘‘Public Transportation
Innovation’’. Innovation has been a
focus area for both the DOT and FTA for
a number of years. Most recently, FTA
launched the XPEDITE Innovation
initiative, which was an online dialogue
that sought industry input on a number
of innovation areas from technology
advances to financing and project
delivery. FTA’s research program will
continue to build on this effort, along
with major departmental initiatives
such a Beyond Traffic and Ladders of
Opportunity with a significant emphasis
on technology trends that increase
public transportation efficiency,
effectiveness and enhance the quality of
customer travel. FTA research goals are
to promote innovation through projects
of national significance that improve
our nation’s public transportation
operations, infrastructure, and the
travelers’ experience in three focus
areas: Safety, asset innovation/
management, and mobility. Under 49
U.S.C. 5312, as amended by the FAST
Act, three categories of projects are
authorized: Research; innovation and
development; and demonstration,
deployment and evaluation. FTA
research projects achieve public
transportation innovation goals by
utilizing one or more of the following
strategic directions:
• Enhancing equitable and accessible
mobility for everyone
• Extending public private partnerships
• Ensuring public transportation
efficiency, safety and reliability
• Enabling seamless, effective
integration across transportation
modes and applications, and;
• Expanding customer satisfaction and
value.

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FTA’s research and innovation
activities harness thought leadership
and promising practices as directed in
49 U.S.C. 5312 through contracts and
cooperative agreements across states,
academic institutions, transportation
providers, and private and nonprofit
organizations.
5. Innovative Procurement (Section
3019)
Section 3019 of the FAST Act clarifies
and emphasizes the ability of FTA
recipients to enter into cooperative
procurements and creates a pilot
program. FTA will issue guidance in the
near future related to cooperative
procurement schedules, the Pilot
Program for Nonprofit Cooperative
Procurements, and the Joint
Procurement Clearinghouse.
Additionally, Section 3019 modifies
and clarifies FTA’s leasing requirements
and eligibility. See changes for lease
requirements in the cross-cutting
section III.D.4 of this Notice.
6. Tribal Transportation SelfGovernance Program (Title 23 FederalAid Highways Program)
Section 1121 of the FAST Act
establishes a Tribal Transportation SelfGovernance Program (Self Governance)
at 23 U.S.C. 207. The Self-Governance
Program establishes specific criteria for
determining eligibility for a tribe to
participate in the program. DOT will
implement this program in consultation
with tribal representatives and other
interested stakeholders. More
information about this program will be
provided at a later date.
7. Discretionary Programs
The FAST Act continues several
discretionary programs that were
authorized under MAP–21 and creates
new ones. FTA is in the process of
developing criteria and program
guidance for the discretionary programs,
which will be published in Notices of
Funding Availability (NOFA). These
include:
a. Transit-Oriented Development
Planning Pilot Program (Section
20005(b) of MAP–21)
This discretionary pilot program for
transit-oriented development (TOD)
planning grants continues with no
changes from what was included under
MAP–21 and is authorized for $10
million for FY 2016. Eligible activities
include comprehensive planning in
corridors with proposed New Starts,
Small Starts, or Core Capacity projects.
The comprehensive plans should
enhance economic development,
ridership, and other goals; facilitate

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multimodal connectivity and
accessibility; increase access to transit
hubs for pedestrian and bicycle traffic;
enable mixed-use development; identify
infrastructure needs associated with the
project; and include private sector
participation. A NOFA will be
published announcing the amount of
funding available, application
procedures, project and applicant
eligibility, and relevant selection
criteria. For more information or
questions on this program, please
contact Ben Owen at 202–366–5602 or
[email protected].
b. Passenger Ferry Grant Program (49
U.S.C. 5307)
Of the amount authorized for Section
5307 each year, $30 million is set aside
for the competitive discretionary
Passenger Ferry Grant Program. Eligible
projects are capital projects including
ferries, terminals, and related
infrastructure. FTA will allocate FY2016
funds for the discretionary passenger
ferry competition to specific projects
submitted in response to a NOFA
published August 3, 2015. A Notice of
Award will be published in the Federal
Register announcing project selections.
Awards will also be posted to FTA’s
Web site. For more information about
this program, please contact Vanessa
Williams at 202–366–4818 or
[email protected].

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c. Innovative Coordinated Access and
Mobility Pilot Program (49 U.S.C. 5310)
Section 3006(b) of the FAST Act
created a new discretionary pilot
program for innovative coordinated
access and mobility. The $2 million
program is open to Section 5310
recipients and subrecipients to assist in
financing innovative projects for the
transportation disadvantaged that
improve the coordination of
transportation services and nonemergency medical transportation
(NEMT) services. Examples of eligible
projects include the deployment of
coordination technology, and projects
that create or increase access to
community One-Call/One-Click Centers.
A NOFA will be published announcing
the amount of FY 2016 funding
available, application procedures,
project and applicant eligibility, and
relevant selection criteria. A report is
required by December 31 of each year
on the pilot program. The report will
include a detailed description of the
activities carried out under the pilot
program, and an evaluation of the
program, including an evaluation of the
performance measures. For more
information about this program, please

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contact Danielle Nelson at 202–366–
2160 or [email protected].
d. Public Transportation on Indian
Reservations (49 U.S.C. 5311(j))
The Tribal Transit program continues
to be a set-aside from the Rural Areas
Formula program and includes a $5
million competitive discretionary grant
program. Eligible projects are planning,
capital and operating. FTA will publish
a NOFA announcing FY 2016 funding,
application procedures, project and
applicant eligibility, and relevant
selection criteria. For more information
or questions on this program, please
contact Elan Flippin at (202) 366–3800
or [email protected].
e. Buses and Bus Facilities Competitive
Grants (49 U.S.C. 5339(b))
The FAST Act authorizes a
discretionary bus and bus facilities
program in 49 U.S.C. 5339. In FY 2016
a total of $213 million is available to
carry out the 5339(b) Bus and Bus
Facilities Competitive Grant Program.
Eligible capital projects include projects
to replace, rehabilitate, lease, and
purchase buses and related equipment
and projects to purchase, rehabilitate,
construct or lease bus-related facilities.
FTA will publish a NOFA announcing
the amount of FY 2016 funding
available, application procedures,
project and applicant eligibility, and
relevant selection criteria. For more
information about the Bus and Bus
Facilities competitive grants
discretionary program, contact Sam
Snead, Office of Transit Programs, at
(202) 366–1089 or Samuel.Snead@
dot.gov.
f. Low or No Emission Grants (49 U.S.C.
5339(c))
The FAST Act authorizes a total of
$55 million for the 5339(c) Low or No
Emissions Program (Low-No Program).
Eligible projects or program of projects
include the acquisition and leasing of
low or no emission vehicles,
constructing and leasing facilities and
rehabilitating or improving existing
facilities to accommodate low or no
emission vehicles. FTA will publish a
NOFA announcing the amount of FY
2016 funding available, application
procedures, project and applicant
eligibility, and relevant selection
criteria. For more information about the
Low or No Emission discretionary
program, contact Sam Snead, Office of
Transit Programs, at (202) 366–1089 or
[email protected].
FTA’s research office will continue to
implement and evaluate the MAP–21authorized FY 2013–2015 resources
available through the Low or No

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Emission Deployment Program (49
U.S.C. 5312). FTA expects to announce
the final research deployment grants
(FY 2015; $22.5M) in the summer of
2016. For more information about the
MAP–21-authorized Low or No Emission
discretionary research program, contact
Sean Ricketson, Office of Research,
Demonstration and Innovation, at (202)
366–6678 or [email protected].
g. Positive Train Control (Section 3028)
Section 3028 of the FAST Act
authorizes grants for positive train
control. The discretionary program
authorizes funding for FY 2017, and
funds will be used for the installation of
positive train control systems as
required under 49 U.S.C. 20157, which
states that Class I railroad carriers and
each entity providing regularly
scheduled intercity or commuter rail
passenger transportation shall submit to
the Secretary of Transportation a revised
plan for implementing a positive train
control system by December 31, 2018.
The Federal Railroad Administration
(FRA) will issue the Notice of Funding
Availability and select the recipients of
the positive train control grants. FTA
will administer the grants once the
allocations to recipients are announced.
B. Definitional Changes and New
Definitions
Section 3002 of the FAST Act
amended section 5302 to provide new
definitions and to amend existing
definitions that clarify eligibility and
requirements within FTA’s programs.
Unless otherwise stated, these
definitions apply across all FTA
programs, and are effective with all
funds obligated as of the date of this
notice even if the funds were
appropriated in earlier fiscal years.
Several important definitional changes
include:
1. Associated Transit Improvement
The term associated transit
improvement means, with respect to
any project or an area to be served by
a project, projects that are designed to
enhance public transportation service or
use and that are physically or
functionally related to transit facilities.
A few minor changes were noted in
the definition of associated transit
improvement. The word functional has
been added as a description to
landscaping and streetscaping. Also, a
sentence was restructured to clarify the
definition of bicycle access in (1)(E) to
read bicycle access, including bicycle
storage shelters and parking facilities
and the installation of equipment for
transporting bicycles on public
transportation vehicles.

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2. Capital Project
Several sections under the definition
of capital project have been amended.
Leasing equipment or a facility for use
in public transportation no longer is
subject to regulations that the Secretary
prescribes or a cost effectiveness test.
(See changes to leasing in the crosscutting requirements section of this
Notice).
The construction of space for
commercial uses, including the
outfitting of commercial space is now an
eligible expense as a part of a joint
development project. Language was
removed stating that construction of
space for commercial uses does not
include outfitting of commercial space
(other than intercity bus station or
terminal) or a part of a public facility
not related to public transportation.
A new provision was added for nonfixed route paratransit transportation
services. It retains the eligibility for
grant recipients to use up to 10 percent
of a recipient’s annual formula
apportionment under sections 5307 and
5311 for the provision of non-fixed
route Americans with Disabilities (ADA)
complementary paratransit services at
an 80 percent Federal share.
Additionally, recipients now may use
up to 20 percent of the amounts
apportioned under sections 5307 and
5311 for ADA complementary
paratransit service at an 80 percent
Federal share if the recipient
demonstrates that the recipient meets at
least two of the following requirements:
(I) Provides an active fixed route travel
training program that is available for
riders with disabilities, (II) provides that
all fixed route and paratransit operators
participate in a passenger safety,
disability awareness, and sensitivity
training class on at least a biennial
basis, or (III) has memoranda of
understanding in place with employers
and the American Job Center to increase
access to employment opportunities for
people with disabilities.
The definition of a capital project now
specifically includes associated transit
improvements and technological
changes or innovations to modify low or
no emission vehicles (as defined in
section 5339)(c)) or facilities.

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3. Value Capture and Value Capture
Revenue
The term ‘‘value capture’’ is a new
term in the FAST Act that has been in
practice for several years. Value capture
is a financing strategy for recovering the
increased property value from property
located near public transportation
resulting from investments in public
transportation. Under section 5323(s), a

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recipient of assistance may use the
revenue generated from value capture
financing mechanisms as local matching
funds for capital projects and operating
costs eligible under Chapter 53 of title
49, United States Code. FTA will issue
subsequent guidance on implementing
this provision.
C. Repealed and Consolidated Programs
in FTA’s Authorization
The FAST Act focuses on improving
the efficiency of grant program
operations by consolidating certain
programs and repealing other programs.
For programs that expired on September
30, 2015, no new funding is authorized
beyond fiscal year 2015. However,
unobligated funds appropriated or
authorized in FY 2015 and prior years
remain available for obligation (for the
established period of availability when
appropriated or allocated) and
expenditure, and follow programspecific requirements established under
prior authorizations. In addition, there
are new cross-cutting requirements
under the FAST Act found in section
III.D of this notice that apply to all
grants obligated in FY 2016.
1. Research, Development,
Demonstration and Deployment
Program (49 U.S.C. 5312)
Formerly the Research, Development,
Demonstration, and Deployment
Program, the FAST Act amends 49
U.S.C. 5312 and renames this section,
which authorizes FTA’s research
program, to ‘‘Public Transportation
Innovation.’’ While maintaining the
authority for research, development,
demonstration, deployment, and
evaluation activities as previously
authorized in section 5312, the Low or
No Emission Vehicle Deployment
Program (Lo-No Deployment Program) is
no longer authorized as a discretionary
research-funded activity; however, FTA
is currently in the process of evaluating
eligible proposals submitted in response
to the NOFA published on September
24, 2015 (closed on November 23, 2015)
and anticipates allocating the FY 2015
appropriations to selected projects in
the summer of 2016. FTA also continues
to work with the recipients of the FY
2013–2014 Lo-No Deployment program
to implement and evaluate vehicle and
facilities projects. And, while no longer
eligible in the research program,
grantees can compete under the new
discretionary authority found in the Bus
and Bus Facilities program (section
5339) specifically for Low and No
Emission vehicle and facility projects in
FY 2016.

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2. Transit Cooperative Research Program
(49 U.S.C. 5313)
The FAST Act repeals section 5313
and moves the authority for the
cooperative research program to section
5312 (49 U.S.C. 5312(i)) as described
above.
3. Technical Assistance and Standards
Development (49 U.S.C. 5314)
Formerly Technical Assistance and
Standards Development, the FAST Act
amends 49 U.S.C. 5314 to include new
authority and renames the section to
‘‘Technical Assistance and Workforce
Development.’’ In addition to funding
technical assistance and standards
development, this section now
authorizes FTA’s workforce
development activities and the National
Transit Institute (NTI), both formerly
found in section 5322.
Of particular note, this section now
authorizes recipients under sections
5307, 5337, and 5339 to use 0.5 percent
of their available funds to pay for
workforce development activities (up to
an 80 percent Federal share). There is a
separate eligibility to use 0.5 percent of
available funds under the sections above
for training at the National Transit
Institute.
4. Bicycle Facilities (49 U.S.C. 5319)
Section 5319—Bicycle facilities has
been repealed. This section had
permitted a higher Federal share of up
to 95 percent for bicycle access and
other bicycle capital projects. However,
capital projects for bicycle access,
including bicycle storage shelters and
parking facilities and the installation of
equipment for transporting bicycles on
public transportation vehicles remains
eligible at an 80 percent Federal share.
5. Human Resources and Training (49
U.S.C. 5322)
The FAST Act repeals section 5322
and moves the authority for human
resources and training to section 5314,
as described above.
D. Cross-Cutting Programmatic
Requirements and Changes
The following cross-cutting
requirements apply to all FTA programs
as of the date of this notice.
1. Metropolitan and Statewide Planning
The planning programs provide
funding and procedural requirements to
metropolitan areas and States for
multimodal transportation planning that
is cooperative, continuous, and
comprehensive, resulting in long-range
plans and short-range programs of
projects that reflect transportation
investment priorities. The planning

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programs are jointly administered by
FTA and the Federal Highway
Administration (FHWA), which
provides additional funding. There are
six changes noted below. These
requirements will not go into effect until
FTA and FHWA complete a rulemaking
process and issue further guidance. The
amendments to sections 5305 and 5304:
• Place new emphasis on intercity
transportation, including intercity buses
and intermodal facilities that support
intercity transportation, and commuter
vanpool providers; and
• Clarify the selection and role of the
transit representation on Metropolitan
Planning Organization (MPO) policy
boards in large urbanized areas. MPOs
in urbanized areas designated as
transportation management areas must
include officials of agencies that
administer or operate major modes of
transportation, as well as
representatives of public transit
operators, on MPO policy boards. The
representative of public transit shall be
selected according to the bylaws or
enabling legislation of the MPO, and the
representative of public transit may also
serve as a representative of a local
municipality on the MPO board. For
additional information please reference
the Policy Guidance on Metropolitan
Planning Organization (MPO)
Representation Published on July 2,
2014, at http://www.fta.dot.gov/
documents/Transit_Rep_Fed_
Register.pdf.
• The scope of the planning process
should improve the resiliency and
reliability of the transportation system,
in addition to the eight pre-existing
goals established under MAP–21, and
reduce the vulnerability of the existing
transportation infrastructure to natural
disasters.
• MPOs and State DOTs should
provide public ports, intercity bus
operators and employer-based
commuting programs with a reasonable
opportunity to comment on
transportation plans.
• Place greater emphasis on the
congestion management process. MPOs
that serve transportation management
areas shall develop a congestion
management plan with input from
employers, private and public transit
providers, transportation management
associations, and organizations that
provide low-income individuals
transportation access to jobs and job
related services.
• The Statewide transportation plan
must include a description of the
performance measures and performance
targets. State DOTs are also required to
provide a system performance report
evaluating the condition and

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performance of the transportation
system.
In addition to changes in sections
5303 and 5304, FTA notes the
Metropolitan and Statewide planning
processes continue to emphasize a
performance-based planning process:
MPOs and State DOTs must establish
performance targets that address
forthcoming U.S. DOT-issued national
performance measures that are based on
the goals outlined in the legislation–
safety, infrastructure condition,
congestion reduction, system reliability,
economic vitality, environmental
sustainability, reduced project delivery
delays, transit safety, and transit asset
management. MPOs also must
coordinate their performance targets, to
the maximum extent practicable, with
performance targets set by FTA grantees
under the new performance measure
requirements for safety and state of good
repair. Transportation Improvement
Programs (TIPs) must include a
description of the anticipated progress
toward achieving the performance
targets resulting from implementation of
the TIP. By October 1, 2017, the DOT is
to provide Congress with a report
evaluating the effectiveness of
performance-based planning and
assessing the technical capacity of
MPOs in smaller areas to undertake
performance-based planning.
2. Provision of Non-Fixed Route
Paratransit Under ADA
The FAST Act amended the definition
of capital projects relative to Americans
with Disabilities Act (ADA)
complementary paratransit services in
49 U.S.C. 5302. Specifically, grant
recipients that are in compliance with
applicable requirements of the ADA,
including both fixed route and demand
responsive service, may continue to
expend up to 10 percent of the
recipient’s annual formula
apportionment under sections 5307 and
5311 for ADA complementary
paratransit service at an 80 percent
Federal share. In addition, grant
recipients may now expend up to 20
percent of the recipient’s annual
formula apportionment under sections
5307 and 5311 for ADA complementary
paratransit service, at an 80 percent
Federal share, if the recipient provides
evidence to the applicable FTA Regional
office that it meets at least two of the
following requirements:
(1) Provides an active fixed-route
travel training program that is available
for riders with disabilities.
(2) Provides that all fixed route and
paratransit operators participate in a
passenger safety, disability awareness,

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and sensitivity training class on at least
a biennial basis.
(3) Have memoranda of understanding
in place with employers and the
American Job Center to increase access
to employment opportunities for people
with disabilities.
Eligibility for using formula funds at
an 80 percent Federal share for ADA
service is contingent on compliance
with ADA requirements for both fixed
route and demand responsive service.
FTA recipients must certify compliance
with the ADA annually, and are subject
to compliance review activities
conducted by FTA to monitor
compliance and correct deficiencies.
3. Buy America
The FAST Act amended the Buy
America requirements to provide for a
phased increase in the domestic content
for rolling stock. For FY16 and FY17,
the cost of components and
subcomponents produced in the United
States must be more than 60 percent of
the cost of all components. For FY18
and FY19, the cost of components and
subcomponents produced in the United
States must be more than 65 percent of
the cost of all components. For FY20
and beyond, the cost of components and
subcomponents produced in the United
States must be more than 75 percent of
the cost of all components. There is no
change to the requirement that final
assembly of rolling stock must occur in
the United States. FTA will be issuing
guidance on the implementation of the
phased increase in domestic content in
the near future.
4. Leasing
The FAST Act amends the definition
of Capital project in section 5302 to
remove the requirement that leasing
equipment or a facility for use in public
transportation is subject to regulations
limiting those leases to those that are
more cost effective than purchase or
construction. FTA will therefore no
longer enforce 49 CFR part 639 Capital
Leases. Recipients should therefore refer
to leasing eligibility under 2 CFR part
200 Uniform Administrative
Requirements, Cost Principles, and
Audit Requirements for Federal Awards,
specifically part 200.465 Rental costs of
real property and equipment.
Although the regulatory requirements
are eliminated, section 3019 of the
FAST Act requires all recipients of
capital leases to submit to FTA, no later
than 3 years after the date on which the
lease was entered, a report evaluating
the overall costs and benefits of leasing
rolling stock and comparing the
expected short-term and long-term

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maintenance costs of leasing versus
buying rolling stock.
Although already eligible under
FTA’s programs, section 3019 of the
FAST Act emphasizes that power
sources separately installed in and
removed from a zero emission vehicle
may be acquired through capital lease.
5. Project Management Oversight
The FAST Act amended the project
management oversight statute, 49 U.S.C.
5327, to specify that FTA conduct a
review of a grantee’s compliance with
its approved project management plan
for a major capital project on a quarterly
basis, rather than monthly, unless the
grantee is not in compliance with the
project management plan and the
project is at risk of running over budget
and behind schedule, in which case
FTA may conduct more frequent
reviews. Section 5327 also requires a
grantee for a major capital project to
submit quarterly updates of the project
budget and schedule. These changes in
oversight practice will apply to all major
capital projects.
6. Incremental Costs of Art and NonFunctional Landscaping Prohibited
The FAST Act makes ineligible the
incremental costs of incorporating art or
non-functional landscaping into
facilities, including the costs of an artist
on a design team.

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

administer Section 415 in accordance
with this intent.
Please note, however, that Section 192
of the FY2016 Consolidated
Appropriations Act provides that FTA
may assist a contract under title 49 of
the United States Code that utilizes a
geographic, economic, or any other
hiring preference on a contract or
construction project with which the
Department of Transportation is
assisting, only if the grant recipient
certifies the following: (1) That except
with respect to apprentices or trainees,
a pool of readily available but
unemployed individuals possessing the
knowledge, skill, and ability to perform
the work that the contract requires
resides in the jurisdiction; (2) that the
grant recipient will include appropriate
provisions in its bid document ensuring
that the contractor does not displace any
of its existing employees in order to
satisfy such hiring preference; and (3)
that any increase in the cost of labor,
training, or delays resulting from the use
of such hiring preference does not delay
or displace any transportation project in
the applicable Statewide Transportation
Improvement Program or Transportation
Improvement Program. FTA will
provide additional guidance on these
provisions in the near future.
II. Program-Specific Information
A. Metropolitan Planning Program (49
U.S.C. 5303 and 5305(d))
Section 5305(d) authorizes Federal
funding to support a cooperative,
continuous, and comprehensive
planning program for transportation
investment decision-making at the
metropolitan area level. The specific
requirements of metropolitan
transportation planning are set forth in
49 U.S.C. 5303 and further explained in
23 CFR part 450, as incorporated by
reference in 49 CFR part 613, Statewide
Transportation Planning; Metropolitan
Transportation Planning. State
Departments of Transportation (DOTs)
are direct recipients of funds allocated
by FTA, which are then sub-allocated to
Metropolitan Planning Organizations
(MPOs), for planning activities that
support the economic vitality of the
metropolitan area.
The metropolitan transportation
planning process must establish a
performance-based approach in which
the MPO will develop specific
performance targets that address
transportation system performance

measures (to be issued by U.S. DOT),
where applicable, to use in tracking
progress towards attaining critical
outcomes. These performance targets
will be established by MPO’s in
coordination with States and transit
providers. MPOs will provide a system
performance report that evaluates the
progress of the MPO in meeting the
performance targets in comparison with
the system performance identified in
prior reports.
This funding must support work
elements and activities resulting in
balanced and comprehensive
intermodal transportation planning for
the movement of people and goods in
the metropolitan area. Comprehensive
transportation planning is not limited to
transit planning or surface
transportation planning, but also
encompasses the relationships among
land use and all transportation modes,
without regard to the programmatic
source of Federal assistance. Eligible
work elements or activities include, but
are not limited to studies relating to
management, mobility management,
planning, operations, capital
requirements, and economic feasibility;
evaluation of previously funded
projects; peer reviews and exchanges of
technical data, information, assistance,
and related activities in support of
planning and environmental analysis
among MPOs and other transportation
planners; work elements and related
activities preliminary to and in
preparation for constructing, acquiring,
or improving the operation of facilities
and equipment; development of
coordinated public transit human
services transportation plans. An
exhaustive list of eligible work activities
is provided in FTA Circular 8100.1C,
Program Guidance for Metropolitan
Planning and State Planning and
Research Program Grants, dated
September 1, 2008. For more about the
Metropolitan Planning Program, contact
Victor Austin, Office of Planning and
Environment at (202) 366–2996 or
[email protected].
1. Authorized Amounts
The FAST Act authorizes $108.14
million in FY 2016, $110.35 million in
FY 2017, $112.66 million in FY 2018,
$115.05 million in FY 2019 and $117.49
million in FY 2020 to provide financial
assistance for metropolitan planning
needs under section 5305.

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$108,141,510

$110,347,597

$112,664,897

$115,053,393

$117,492,524

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

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

METROPOLITAN PLANNING
FY 2016
Total Appropriation ...............
Oversight Deductions ...........
Total Apportioned ..........

portions thereof to provide funds for
planning projects included in a one or
two-year program of planning work
activities (the Unified Planning Work
Program, or UPWP) that includes
multimodal systems planning activities
spanning both highway and transit
planning topics. Each State has either
reaffirmed or developed, in consultation
with their MPOs, an allocation formula
among MPOs within the State, based on
the 2010 Census. The allocation formula
among MPOs in each State may be
changed annually, but any change
requires approval by the FTA Regional
PROGRAM— Office before grant approval. Program
guidance for the Metropolitan Planning
Program is found in FTA Circular
$108,141,510 8100.1C, Program Guidance for
(540,707) Metropolitan Planning and State
Planning and Research Program Grants,
107,600,803 dated September 1, 2008.

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

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

supplementing the technical assistance
program provided through the
Metropolitan Planning program. The
specific requirements of Statewide
transportation planning are set forth in
49 U.S.C. 5304 and further explained in
23 CFR part 450 as referenced in 49 CFR
part 613, Statewide Transportation
Planning; Metropolitan Transportation
Planning; Final Rule. State DOTs are
required to reference performance
measures and performance targets
within the Statewide Planning process.
This funding must support work
elements and activities resulting in
balanced and comprehensive
intermodal transportation planning for
the movement of people and goods.
Comprehensive transportation planning
is not limited to transit planning or
surface transportation planning, but also
encompasses the relationships among
land use and all transportation modes,
without regard to the programmatic
source of Federal assistance. For more
information, contact Victor Austin,
Office of Planning and Environment at
(202) 366–2996 or [email protected].
1. Authorized Amounts

B. State Planning and Research Program
(49 U.S.C. 5304 and 5305(e))
This program provides financial
assistance to States for statewide
transportation planning and other
technical assistance activities, including

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

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$22,590,490

$23,051,336

$23,535,414

$24,034,364

$24,543,893

2. FY 2016 Funding Availability

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5. Period of Availability

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

STATEWIDE PLANNING PROGRAM—FY
2016—Continued
Total Apportioned ............

22,477,537

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

3. Basis for Formula Apportionment

The FAST Act did not change the
funding formula. Of the amount
authorized in section 5305, 17.28
percent is allocated to the State
Planning and Research program. FTA
STATEWIDE PLANNING PROGRAM—FY
apportions funds to States by a statutory
2016
formula that is based on the most recent
decennial Census data available, and the
Total Appropriation .............
$22,590,490
State’s UZA population as compared to
Oversight Deductions .........
(112,953)
the UZA population of all States.

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

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

for public transportation in urbanized
areas. An urbanized area (UZA) is an
area with a population of 50,000 or
more that has been defined and
designated as such by the U.S. Census
Bureau. Program funds are apportioned
to urbanized areas through a statutory
formula. In addition, $30 million is
allocated each year under this program
to passenger ferry projects through a
discretionary funding competition.
For more information about the
Urbanized Area Formula Program,
contact Tara Clark, Office of Transit
Programs, at (202) 366–2623 or
[email protected].

Section 5307 authorizes Federal
assistance for capital, planning, job
access and reverse commute projects,
and, in some cases, operating assistance

1. Authorized Amounts
The FAST Act authorizes
$4,538,905,700 in FY 2016,
$4,629,683,814 in FY 2017,

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

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$4,538,905,700

$4,629,683,814

$4,726,907,174

$4,827,117,606

$4,929,452,499

Area Formula Program formula, the
Small Transit Intensive Cities (STIC)
formula, the Growing States and High
Density States formula, and a formula
based on low-income population.
The FAST Act did not make changes
to the apportionment formula for FY
2016 through 2018. Section 5336(h)
states that 3.07 percent of section 5307
funds available are for apportionment
are allocated on the basis of low-income
persons residing in urbanized areas,
with 25 percent of these funds allocated
to areas below 200,000 in population
and the remaining 75 percent allocated
to areas 200,000 and over in population.
The percentage of funds allocated on the
URBANIZED AREA FORMULA
basis of Small Transit Intensive Cities
PROGRAM—FY 2016
(STIC) factor remains 1.5 percent.
a
Total Appropriation .........
$4,538,905,700 However, the STIC factor will increase
Oversight Deduction .......
(34,041,793) to 2.0 percent in FY 2019. Finally, The
0.5 percent takedown for State Safety
Ferry Discretionary Program ............................
(30,000,000) Oversight grant program still applies.
State Safety Oversight
Consistent with prior apportionment
Program ......................
(22,694,529) notices, Table 3 shows a total section
Section 5340 High Den5307 apportionment for each UZA,
sity States ...................
263,964,457 which includes amounts apportioned
Section 5340 Growing
under each of these formulas. Detailed
States ..........................
194,943,998
information about the formulas is
Total Apportioned ........
4,911,077,833 provided in Table 4. For technical
assistance purposes, the UZAs that
a Includes 1.5 percent set-aside for Small
receive STIC funds are listed in Table 6.
Transit Intensive Cities Formula.
Table 3 displays the amounts apportioned FTA will provide breakouts of the
under the Urbanized Area Formula Program.
funding allocated to each UZA under
these formulas upon request to the FTA
3. Basis for Formula Apportionment
Regional Office.
FTA apportions Urbanized Area
a. Section 5307—Urbanized Area
Formula Program funds based on
statutory formulas. Congress established Formula
four separate formulas that are used to
For UZAs between 50,000 and
apportion portions of the available
199,999 in population, the section 5307
funding: The section 5307 Urbanized
formula is based on population and
2. FY 2016 Funding Availability
A total of $4,538,905,700 is available
for the section 5307 program for FY
2016. The total amount apportioned to
urbanized areas is $4,911,077,833 which
includes the addition of amounts
apportioned to UZAs pursuant to the
Section 5340 Growing States and High
Density States Formula factors. This
amount excludes the set-aside for the
Passenger Ferry Discretionary Program,
apportionments under the State Safety
Oversight Program, and oversight
(authorized by section 5338), as shown
in the table below:

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$4,726,907,174 in FY 2018,
$4,827,117,606 in FY 2019 and
$4,929,452,499 in FY 2020 to provide
financial assistance for urbanized areas
under section 5307. Of the amount
authorized and appropriated for section
5307 in each year, $30 million is set
aside for the competitive discretionary
Passenger Ferry Grant Program, 0.5
percent will be apportioned to eligible
States for State Safety Oversight (SSO)
Program grants, and 0.75 percent will be
set aside for program oversight.
Further information on the Passenger
Ferry Discretionary Program is provided
in section III of this notice. Further
information on the 0.5 percent
apportionment to States for the State
Safety Oversight Program is provided in
section IV.N. of this notice.

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population density. For UZAs with
populations of 200,000 and more, the
formula is based on a combination of
bus revenue vehicle miles, bus
passenger miles, bus operating costs,
fixed guideway vehicle revenue miles,
and fixed guideway route miles, as well
as population and population density.
The Urbanized Area Formula is defined
in 49 U.S.C. 5336.
To calculate a UZA’s FY 2016
apportionment, FTA used population
and population density statistics from
the 2010 Census and validated mileage
and transit service data from transit
providers’ 2014 National Transit
Database (NTD) Report Year (when
applicable). Consistent with section
5336(b), FTA has included 27 percent of
the fixed guideway directional route
miles and vehicle revenue miles from
eligible urbanized area transit systems,
but which were attributable to rural
areas outside of the urbanized areas
from which the system receives funds.
FTA has calculated dollar unit values
for the formula factors used in the
Urbanized Area Formula Program
apportionment calculations. These
values represent the amount of money
each unit of a factor is worth in this
year’s apportionment. The unit values
change each year, based on all of the
data used to calculate the
apportionments, as well as the amount
appropriated by Congress for the
apportionment. The dollar unit values
for FY 2016 are displayed in Table 5. To
replicate the basic formula component
of a UZA’s apportionment, multiply the
dollar unit value by the appropriate
formula factor (i.e., the population,

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population x population density), and
when applicable, data from the NTD
(i.e., route miles, vehicle revenue miles,
passenger miles, and operating cost).
b. Small Transit Intensive Cities
Formula
Under the STIC formula, FTA
apportions 1.5% of the funds made
available for section 5307 to UZAs that
are under 200,000 in population and
have public transportation service that
operates at a level equal to or above the
industry average for UZAs with a
population of at least 200,000, but not
more than 999,999. STIC funds are
apportioned on the basis of one or more
of six performance categories: Passenger
miles traveled per vehicle revenue mile,
passenger miles traveled per vehicle
revenue hour, vehicle revenue miles per
capita, vehicle revenue hours per capita,
passenger miles traveled per capita, and
passengers per capita. In FY 2019, the
STIC set aside will increase from 1.5%
to 2%.
The data used to determine a UZA’s
eligibility under the STIC formula and
to calculate the STIC apportionments
was obtained from the NTD reports for
the 2014 reporting year. Because
performance data change with each
year’s NTD reports, the UZAs eligible
for STIC funds and the amount each
receives may vary each year. UZAs that
received funding through the STIC
formula for FY 2016 are listed in Table
6.

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c. Section 5340—Growing States and
High Density States Formula
FTA also apportions funds to
qualifying UZAs and States according to
the section 5340 Growing States and
High Density States formula, as shown
in Table 3. For fiscal year 2016 FTA
apportions $194,943,998 to UZAs in
Growing States and $263,964,457 to
UZAs in High Density States. More
information on this program and its
formula is found in section IV.P. of this
notice.
d. Low-Income Population
The FAST Act does not change the
formula factor for low-income
population. Of the amount authorized
and appropriated for the Urbanized
Area Formula Program in each year,
3.07 percent is apportioned on the basis
of low income population. A total of
$139,344,405 has been apportioned to
UZAs based on this formula for FY
2016, as described below.
As specified in statute, FTA
apportions 75 percent of the available
funds to UZAs with a population of
200,000 or more. Funds are apportioned
based on the ratio of the number of low

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income individuals in each UZA to the
total number of low income individuals
in all urbanized areas of that size. FTA
apportions the remainder of the funds
(25 percent) to UZAs with populations
of less than 200,000, according to an
equivalent formula. The low income
populations used for this calculation
were based on the American
Community Survey (ACS) data set for
2009–2013. This information is updated
by the Census Bureau annually.
4. Eligible Expenses
Eligible activities include planning,
engineering design and evaluation of
transit projects and other technical
transportation-related studies; capital
investments in bus and bus-related
activities such as replacement of buses,
overhaul and rebuilding of buses; crime
prevention and security equipment;
construction of maintenance and
passenger facilities; and capital
investments in new and existing fixed
guideway systems including rolling
stock, overhaul and rebuilding of
vehicles, track, signals,
communications, and computer
hardware and software. All preventive
maintenance and some Americans with
Disabilities Act complementary
paratransit service costs are considered
capital costs. For urbanized areas with
populations less than 200,000, operating
assistance is an eligible expense. In
areas over 200,000 in population,
operating assistance is an eligible
expense if the special rule (100 Bus
Rule) at 49 U.S.C. 5307(a)(2) applies. Job
Access and Reverse Commute activities
remain eligible under the program.
In addition, recipients may now use
up to one-half of one percent of their
section 5307 funds to support workforce
development activities at an 80 percent
Federal share; the eligible workforce
development activities are defined in
section 5314; see Section IV.K. of this
notice for more information. This
provision is new in section 5314 and is
in addition to the one-half of one
percent that recipients may use for
training activities with the National
Transit Institute.
5. Requirements
Program guidance for the Urbanized
Area Formula Program is found in FTA
Circular 9030.1E, Urbanized Area
Formula Program: Program Guidance
and Application Instructions, dated
January 16, 2014, and is supplemented
by additional information and changes
provided in this notice and that may be
posted to section 5307 Web page. FTA
is in the process of updating the
program circular to incorporate changes

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7903

resulting from FAST Act amendments to
49 U.S.C. 5307.
Key program requirements and
changes that apply to all programs are
addressed in section III.D. of this notice,
‘‘Cross-Cutting Programmatic
Requirements and Changes.’’ The
following subsections outline several
important program requirements and
changes that apply specifically to the
Urbanized Area Formula Program.
In FY 2016, FTA will apportion funds
to a new large UZA for which a
designated recipient has not yet been
selected. These funds will become
available for grants once FTA has
received documentation of the selection
of a designated recipient (for the Lake
Tahoe UZA identified in section 5303(r)
Bi-State Metropolitan Planning
Organization).
6. Period of Availability
Funds made available under Section
5307 are available for obligation during
the year of apportionment plus five
additional years. This is unchanged
under the FAST Act. Accordingly, funds
apportioned in FY 2016 must be
obligated in grants by September 30,
2021. Any FY 2016 apportioned funds
that remain unobligated at the close of
business on September 30, 2021 will
revert to FTA for reapportionment
under the Urbanized Area Formula
Program.
Funds allocated under the Passenger
Ferry discretionary program follow the
same period of availability as section
5307. Accordingly, funds allocated in
FY 2016 must be obligated in grants by
September 30, 2021. Any of the funds
allocated in FY 2016 that remain
unobligated at the close of business on
September 30, 2021 will revert to FTA
for reallocation under the Passenger
Ferry program.
7. What’s New and Other Program
Highlights
a. Special Rule for Operating Assistance
in Large Urbanized Areas
The FAST Act amended the special
rule at 49 U.S.C. 5307(a)(2) to add
demand response service. The special
rule allows recipients in urbanized areas
with populations of 200,000 or above
and those that operate 100 or fewer
buses in fixed route service or demand
response, excluding ADA
complementary paratransit service,
during peak hours, to receive a grant for
operating assistance subject to a
maximum amount per system as
explained below:
i. Public transportation systems that
operate a minimum of 76 buses and a
maximum of 100 buses in fixed route

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service or demand response, excluding
ADA complementary paratransit
service, during peak service hours may
receive operating assistance in an
amount not to exceed 50 percent of the
share of the apportionment that is
attributable to such systems within the
urbanized area, as measured by vehicle
revenue hours.
ii. Public transportation systems that
operate 75 or fewer buses in fixed route
service or demand response, excluding
ADA complementary paratransit
service, during peak service hours may
receive operating assistance in an
amount not to exceed 75 percent of the
share of the apportionment that is
attributable to such systems within the
urbanized area, as measured by vehicle
revenue hours.
iii. A list of eligible recipients and
their maximum operating assistance
amounts for FY 2016 is shown in Table
3–A. FTA identified the systems eligible
to use this provision and their
maximum amounts for FY 2016 using
data from the NTD for reporting year
2014. Operating assistance requires a 50
percent local match.
In accordance with section 5307(a)(2),
FTA has calculated a fixed annual cap
on operating assistance for each eligible
agency that provides service in a large
UZA. The cap is determined by dividing
the UZA’s apportionment by the total
number of vehicle revenue hours
reported from all public transportation
operators and from all transit modes in
the UZA, and then by multiplying this
quotient by the number of bus vehicle
revenue hours operated in the UZA by
the eligible system. The result is the
proportional share of the apportionment
that is attributable to the qualifying
system, as measured by vehicle revenue
hours. This cap is calculated based on
the FY 2016 apportionment for an
eligible provider’s UZA. Eligible
systems operating in more than one
UZA over 200,000 in population will
receive separate operating caps from
each UZA in which the system operates.
The FY 2016 Apportionment Table 3A
includes all eligible general public
demand response operators.
In determining the amount of
operating assistance available for
specific systems in urbanized areas
under the Special Rule, public
transportation systems may execute a
written agreement with one or more
other public transportation systems
within the urbanized area to allocate
funds by a method other than by
measuring vehicle revenue hours.
Systems within the urbanized area may
combine their individual operating
assistance caps and allocate the
combined funds using a method that is

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agreed upon by all of the systems. The
method used should be documented in
a written agreement, signed by all
parties, and transmitted to FTA as a part
of the split letter.
b. Equipment and Facilities
Maintenance
Section 5307(c) is amended to require
recipients to maintain equipment and
facilities in accordance with the
recipient’s transit asset management
plan.
c. Associated Transit Improvements
Designated recipients in UZAs with
populations of 200,000 or more are no
longer required to expend not less than
one percent of the section 5307 funds
apportioned to the UZA be set aside for
associated transit improvements.
Designated recipients must still submit
an annual report listing projects carried
out in the preceding year with these
funds as part of the Federal fiscal year’s
final quarterly progress report in
TrAMS. The report should include the
following elements: (1) Grantee name;
(2) UZA name and number; (3) FTA
project number; (4) associated transit
improvement category; (5) brief
description of improvement and
progress towards project
implementation; (6) activity line item
code from the approved budget; and (7)
amount awarded by FTA for the project.
The list of associated transit
improvement categories and activity
line item (ALI) codes may be found in
the table of Scope and ALI codes in
TrAMS.
It is the responsibility of the
recipients in a UZA to identify
associated transit improvement projects
that will receive funding from the
Urbanized Area Formula Program.
d. Increased Cap on Spending for ADA
Paratransit Service
As under previous authorizations,
recipients that are in compliance with
the requirements of the ADA may use 10
percent of their annual formula
apportionment for ADA paratransit
service, funded at an 80 percent Federal
share. The FAST Act increases the
spending cap for ADA paratransit
service to 20 percent of a recipient’s
annual formula apportionment under
certain conditions. See sections III.D.
and V.D for more information on this
provision.
e. Eligibility for Safety Certification
Training
Effective May 2015, FTA established
an Interim Safety Certification Training
Program. Recipients of section 5307
funds are permitted to use not more

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than 0.5 percent of their formula funds
under the Urbanized Area Formula
Program to pay not more than eighty
percent of the cost of participation for
an employee who is directly responsible
for safety oversight to participate in
public transportation safety certification
training. The interim program will
remain in place until the effective date
of the final rule. FTA published a Notice
of Proposed Rulemaking (NPRM) for
this program on December 3, 2015.
Comments were due on February 1,
2016.
D. Fixed Guideway Capital Investment
Grant Program (49 U.S.C. 5309)
The Capital Investment Grant (CIG)
Program includes four types of eligible
projects—New Starts projects, Small
Starts projects, Core Capacity
Improvement projects, and Programs of
Interrelated Projects. Funding is
provided for construction of: (1) New
fixed guideway systems or extensions to
existing fixed guideway systems such as
rapid rail (heavy rail), commuter rail,
light rail, trolleybus (using overhead
catenary), cable car, passenger ferries,
and bus rapid transit operating on an
exclusive transit lane for the majority of
the corridor length that also includes
features that emulate the services
provided by rail fixed guideway
including defined stations, traffic signal
priority for public transit vehicles, and
short headway bi-directional service for
a substantial part of weekdays and
weekends; (2) corridor-based bus rapid
transit service that does not operate on
an exclusive transit lane but includes
features that emulate the services
provided by rail fixed guideway
including defined stations, traffic signal
priority for public transit vehicles, and
short headway bi-directional services
for a substantial part of weekdays; (3)
projects that expand the capacity by at
least 10 percent of an existing fixed
guideway corridor that is at capacity
today or will be in five years; and (4)
programs of two or more projects as
described above that have logical
connectivity with one another and will
all begin construction in a reasonable
timeframe.
Projects become candidates for
funding under the Capital Investment
Grant program by successfully
completing steps in the process defined
in section 5309 and obtaining a
satisfactory rating under the statutorilydefined criteria. For New Starts and
Core Capacity Improvement projects,
the steps in the process include project
development, engineering, and
construction. For Small Starts projects
the steps in the process include project
development and construction. For

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Programs of Interrelated Projects, the
steps in the process depend on the
combination of project types included.
New Starts and Core Capacity
Improvement projects receive
construction funds from the program
through a full funding grant agreement
(FFGA) that defines the scope of the
project and specifies the total multi-year
Federal commitment to the project.

information about published allocations
contact Eric Hu, Office of Transit
Programs, at (202) 366–0870 or eric.hu@
dot.gov.
1. Authorized Amounts
The FAST Act authorizes
$2,301,785,760 for FY 2016 through FY
2020 for the Capital Investment Grant
program.

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$2,301,785,760

$2,301,785,760

$2,301,785,760

$2,301,785,760

$2,301,785,760

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

Therefore, funds for a project identified
in FY 2016 must be obligated for the
project by September 30, 2019. Section
5309 funds that remain unobligated
after four fiscal years to the projects for
which they were originally designated
may be made available for other section
5309 projects.

NAME OF PROGRAM—FY 2016
Total Appropriation .........
Oversight Deduction .......

2,155,230,000

3. Basis for Allocation
Funds are allocated on a discretionary
basis and subject to program evaluation.
4. Eligible Expenses
See beginning of section D above.
5. Requirements
FTA will be completing a rulemaking
and interim policy guidance documents
for the Capital Investment Grant
program to implement the changes
made in FAST. Project sponsors should
reference the FTA Web site at
www.fta.dot.gov for the most current
Capital Investment Grant program
policy guidance to learn what is
required to enter and advance through
the program. Grant-related guidance is
found in FTA Circular 9300.1B, Capital
Investment Grant Program Guidance
and Application Instructions, November
1, 2008; and C5200.1A, Full Funding
Grant Agreement Guidance, December
5, 2002, which will be updated in the
future to incorporate the changes made
by the FAST Act.
6. Period of Availability
The FAST Act shortened the period of
availability for section 5309 capital
investment grant program funds from
five years to four years, which is the
fiscal year in which the amount is made
available plus three additional years.

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7. What’s New and Other Program
Highlights
a. New Starts and Core Capacity

$2,177,000,000
(21,770,000)

Total Apportioned ........

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Small Starts projects receive
construction funds through a single year
grant or an expedited grant agreement
that defines the scope of the project and
specifies the Federal commitment to the
project.
For more information about the
Capital Investment Grant program
contact Elizabeth Day, Office of Capital
Project Development, at (202) 366–5159
or [email protected]. For

7905

The FAST Act amended the Capital
Investment Grant Program (CIG) by
changing slightly the eligibility
parameters for New and Small Starts
projects as described below, allowing
joint intercity rail/public transportation
projects to be eligible, limiting the
maximum CIG share for New Starts
projects to 60 percent, and clarifying
how Programs of Interrelated Projects
are to be evaluated and rated.
Under 49 U.S.C. 5309, as amended by
the FAST Act, New Starts projects are
defined as projects with a total capital
cost of $300 million or greater or that
are seeking $100 million or more in
section 5309 funding. Previously, these
thresholds were $250 million and $75
million respectively. Eligible New Starts
projects are new fixed-guideway
systems, such as rapid rail (heavy rail),
commuter rail, light rail, streetcars,
trolleybus (using overhead catenary),
cable car, passenger ferries, and fixed
guideway bus rapid transit, or an
extension of any of these systems. Fixed
guideway bus rapid transit is defined as
operating on an exclusive transit lane
for the majority of the corridor length
and that also includes features that
emulate the services provided by rail
fixed guideway including defined
stations, traffic signal priority for public
transit vehicles, and short headway bidirectional service for a substantial part
of weekdays and weekends.
Small Starts projects are defined as
projects with a total capital cost less
than $300 million and that are seeking

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less than $100 million in section 5309
funding. Previously, these thresholds
were $250 million and $75 million
respectively. Eligible Small Starts
projects are those mentioned for the
New Starts program, as well as corridorbased bus rapid transit projects that do
not operate on a separated fixed
guideway but include features that
emulate the services provided by rail
fixed guideway including defined
stations, traffic signal priority for public
transit vehicles, and short headway bidirectional services for a substantial part
of weekdays. The previous
authorization also required substantial,
bi-directional service on weekends for
corridor-based bus rapid transit projects
but the FAST Act amended 49 U.S.C.
5309 to remove that requirement.
Core Capacity Improvement projects
are defined as substantial, corridorbased investments in existing fixed
guideway systems that are at capacity
today or will be in five years. A Core
Capacity Improvement project must
increase the capacity of the existing
fixed guideway system in the corridor
by at least 10 percent. Core Capacity
projects cannot include elements
designed to maintain a state of good
repair. This was not changed from the
eligibility under MAP–21.
Additionally, the FAST Act amends
section 5309 to define a Program of
Interrelated Projects as the simultaneous
development of two or more New Starts
projects, Small Starts projects, or Core
Capacity projects or any combination
thereof. The projects in the Program
must have logical connectivity to one
another and construction must begin on
the projects in the Program in a
reasonable timeframe. Programs of
Interrelated Projects may also include
non-federally funded projects, which
can count as match toward the overall
Program. FTA is required to evaluate
and rate a Program of Interrelated
Projects as a whole rather than rating
the individual projects in the Program.
The FAST Act amended the evaluation

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criteria in 49 U.S.C. 5309(i) that FTA
must use when developing the ratings,
indicating that if the Program of
Interrelated Projects includes a
combination of project types, the New
Starts criteria should be used. Annually
FTA must review the Program of
Interrelated Projects to ensure it is
adhering to its schedule.
The number of steps in the process for
projects has not changed. For New
Starts and Core Capacity Improvement
projects, the steps in the process include
project development, engineering, and
construction. For Small Starts projects
the steps in the process include project
development and construction. FTA
must evaluate and rate projects seeking
section 5309 funding according to
statutorily defined criteria at various
steps in the process. There is a new
provision that allows for an optional
early rating for Small Starts projects
after the completion of the National
Environmental Policy Act (NEPA). FTA
will implement amendments to 49
U.S.C. 5309 through rule-making and
future policy guidance, which will be
developed through a notice and
comment process.
b. Expedited Project Delivery for Capital
Investment Grants Pilot Program
The FAST Act repealed the pilot
program with a similar name authorized
under MAP–21 and replaced it with this
new pilot program at section 3005(b) of
the Fast Act. Eligible projects for the
pilot program include New Starts, Small
Starts, or Core Capacity improvement
projects that have not yet received a full
funding grant agreement. However the
definitions of New Starts, Small Starts,
and Core Capacity differ slightly from
those used in the Capital Investment
Grant program.
A New Starts project under the pilot
program is defined as a project with a
total capital cost of $300 million or
greater or that is seeking $75 million or

more in funding from the pilot program.
A Small Starts project under the pilot
program is defined as a project with a
total capital cost less than $300 million
and that is seeking less than $75 million
in funding from the pilot program. A
Core Capacity Improvement project
under the pilot program is defined as a
substantial, corridor-based investment
in an existing fixed guideway system
that is at capacity today or will be in
five years. The Core Capacity
Improvement project must increase the
capacity of the existing fixed guideway
system in the corridor by at least 10
percent. It can include elements
designed to maintain a state of good
repair.
The FAST Act allows for up to eight
projects to be selected for the pilot
program. Projects must be supported at
least in part through a public-private
partnership, but must be operated and
maintained by employees of an existing
provider of fixed guideway or bus rapid
transit services in the area. The
maximum Federal funding provided to
projects selected for the pilot program is
25 percent.
The FAST Act also requires that FTA
determine a proposed pilot project is
justified based on its mobility
improvements, environmental benefits,
congestion relief, economic
development effects, and estimated
ridership and that it is supported by an
acceptable degree of local financial
commitment. FTA will publish
guidance in a future Federal Register
notice describing the process for project
sponsors to apply to FTA for
consideration as a pilot project.
E. Enhanced Mobility of Seniors and
Individuals With Disabilities Program
(49 U.S.C. 5310)
The Enhanced Mobility of Seniors
and Individuals with Disabilities
Program provides formula funding
apportioned to direct recipients: States

Fiscal year

2016

5310 Formula Grants ....................................
Discretionary Pilot Program .............................
5310

Total ..............................................

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

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2017

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

2018

2019

2020

$262,949,400
2,000,000

$268,208,388
3,000,000

$273,840,764
3,250,000

$279,646,188
3,500,000

$285,574,688
3,500,000

264,949,400

271,208,388

277,090,764

283,146,188

289,074,688

SECTION 5310 FORMULA
PROGRAM—FY 2016
Total Appropriation .............
Oversight Deductions (oversight 0.5%) ......................

$262,949,400

Total Apportioned ...............
Discretionary Pilot Program

261,634,653
2,000,000

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for rural (under 50,000) and small urban
areas (50,000–200,000); and designated
recipients chosen by the Governor of the
State for large urban areas (populations
of 200,000 or more); or a State or local
governmental entity that operates a
public transportation service. The 5310
program provides capital and operating
assistance for improving the mobility for
seniors and individuals with disabilities
by removing barriers to transportation
service and expanding transportation
mobility options. This program supports
transportation services planned,
designed, and carried out to meet the
special transportation needs of seniors
and individuals with disabilities in all
areas.
This program provides funds to: (1)
Serve the special needs of transitdependent populations beyond
traditional public transportation service,
where public transportation is
insufficient, inappropriate, or
unavailable; (2) projects that exceed the
requirements of the Americans with
Disabilities Act (ADA); (3) project that
improve access to fixed route service
and decrease reliance on
complementary paratransit; and (4)
projects that are alternatives to public
transportation. For more information
about the section 5310 program, contact
Danielle Nelson, Office of Transit
Programs, at (202) 366–2160 or
[email protected].

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(1,314,747)

SECTION 5310 FORMULA
PROGRAM—FY 2016—Continued
Total Apportioned ............

263,634,653

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

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individuals. Twenty percent of the
funds are apportioned among the States
for their urbanized areas with a
population of at least 50,000 but less
than 200,000. Twenty percent of the
funds are apportioned among the States
for their rural areas, areas with a
population less than 50,000. Census
Data on Older Adults and People with
Disabilities is used for the Section 5310
Enhanced Mobility of Older Adults and
People with Disabilities
Apportionments. To view the Section
5310 table which displays the amounts
apportioned under the Enhanced
Mobility of Seniors and Individuals
with Disabilities Program click here:
http://www.fta.dot.gov/12853_
13935.html.
Under the section 5310 formula,
funds are allocated using Census data
on seniors (i.e., persons 65 and older)
and people with disabilities. However,
beginning in 2010, the Census Bureau
stopped collecting this demographic
information on as part of its decennial
census. Data on seniors and people with
disabilities is now only available from
the American Community Survey
(ACS), which is conducted and
published on a rolling basis. FTA’s FY
2016 section 5310 apportionments
incorporate ACS data published in
December 2014. Data on seniors comes
from the ACS 2009–2013 five-year data
set, Table B01001, ‘‘Sex by Age’’. Data
on persons with disabilities comes from
the ACS 2009–2013 five-year data set,
Table S.1810, ‘‘Disability
Characteristics.’’
4. Eligible Expenses
At least 55 percent of program funds
must be used on capital or ‘‘traditional’’
5310 project such as buses and vans;
wheelchair lifts, ramps, and securement
devices; transit-related information
technology systems including
scheduling/routing/one-call systems;
and mobility management programs.
The acquisition of transportation
services under a contract, lease, or other
arrangement is also eligible. Both capital
and operating costs associated with
contracted service are eligible capital
expenses. User-side subsidies are
considered one form of eligible
arrangement. Funds may be requested
for contracted services covering a time
period of more than one year. The
capital eligibility of acquisition of
services is limited to the section 5310
program.
The remaining 45 percent is for
additional ‘‘traditional’’ and other
‘‘nontraditional’’ projects. This includes
projects eligible under the former 5317
New Freedom program, described as:
Capital and operating expenses for new

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public transportation services and
alternatives beyond those required by
the ADA, designed to assist individuals
with disabilities and seniors.
5. Requirements
a. Eligible Recipients
Eligible recipients include States for
rural and small urban areas and
designated recipients chosen by the
Governor of the State for large urban
areas; or a State or local governmental
entity that operates a public
transportation service. For urbanized
areas less than 200,000 in population
and in the rural areas, the State is the
designated recipient for section 5310.
Current section 5310 designations
remain in effect until changed by the
Governor of a State by officially
notifying the appropriate FTA regional
administrator of re-designation.
In urbanized areas over 200,000 in
population, the recipient charged with
administering the section 5310 Program
must be officially designated in
accordance with the planning process,
by the Governor of a State, responsible
local officials, and publicly owned
operators of public transportation prior
to grant award (See definition of
designated recipient, 49 U.S.C. 5302(4)).
Designated recipients are responsible for
administering the program.
Responsibilities include: Notifying
eligible local entities of funding
availability; developing project selection
processes; determining project
eligibility; developing the program of
projects; and ensuring that all
subrecipients comply with Federal
requirements.
Although FTA will only award grants
to the eligible recipients for the
program, there are other entities eligible
to receive funding as subrecipients.
These include private nonprofit
agencies, public bodies approved by the
state to coordinate services for seniors
and people with disabilities, or public
bodies which certify to the Governor
that no nonprofit organizations or
associations are readily available in an
area to provide the service.
b. Local Match
The matching requirements for this
program remain the same; capital
assistance is provided on an 80 percent
Federal share, 20 percent local share.
Operating assistance requires a 50
percent match. Funds provided under
other Federal programs (other than
those of the DOT, with the exception of
the Federal Lands Transportation
Program and Tribal Transportation
Program established by sections 202 and
203 of title 23 U.S.C.) may be used for

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7907

local match for funds provided under
section 5310, and revenue from service
contracts may be used as local match.
c. Planning and Consultation
The coordinated planning provision
requires that all projects be included in
the local coordinated human servicepublic transportation plan.
FTA requires the following elements,
at a minimum, be included in the plans:
i. An assessment of available services
that identifies current transportation
providers (public, private, and
nonprofit);
ii. An assessment of transportation
needs for individuals with disabilities
and seniors;
iii. Strategies, activities, and/or
projects to address the identified gaps
between current services and needs, as
well as opportunities to achieve
efficiencies in service delivery; and,
iv. Priorities for implementation
based on resources (from multiple
program sources), time, and feasibility
for implementing specific strategies
and/or activities identified.
Additionally, the plan must be
developed and adopted with
representation from seniors, individuals
with disabilities, representatives of
public, private, nonprofit transportation
and human services providers, and
other members of the public. Recipients
must certify that projects were selected
from this process and must make
reference to the plan in the program of
projects, which is described below.
d. State and Project Management Plans
FTA will continue to require States,
designated recipients, and State or local
governmental entities that operate a
public transportation service who are
responsible for implementing the
section 5310 program to document their
approach to managing the program. The
primary purposes of Management Plans
are to serve as the basis for FTA
management reviews of the program,
and to provide public information on
the administration of the programs.
e. Program of Projects (POP)
Designated recipients are required to
develop a Program of Projects (POP)
with the grant application and submit it
to the FTA Regional Office. The POP
should be developed with respect to the
coordinated plan, long range plan, and
the transportation improvement plan.
For additional guidance in developing
the required POP, recipients can use
Chapter IV of the FTA Circular 9070.1G,
Enhanced Mobility of Seniors and
Individuals with Disabilities Program
Guidance and Application Instructions,
dated July 7, 2014.

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6. Period of Availability
For Enhanced Mobility of Seniors and
Individuals with Disabilities Program
funds apportioned under this notice,
FTA has administratively set the period
of availability to three years, which
includes the year of apportionment plus
two additional years. Accordingly,
funds apportioned in FY 2016 must be
obligated in grants by September 30,
2018. Any FY 2016 apportioned funds
that remain unobligated at the close of
business on September 30, 2018 will
revert to FTA for reapportionment
among the States and urbanized areas.
7. What’s New and Other Program
Highlights

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Under the FAST Act, 49 U.S.C.
5310(a) is amended to allow a State or
local governmental entity that operates
a public transportation service and is
eligible to receive direct grants under
5311 or 5307 to be a direct recipient for
Section 5310 funds.
The FAST Act amends Section 5310
to require FTA to collect best practices
for dissemination to the public
transportation industry related to
innovation, program models, new
service delivery options, performance
measure findings, and transit
cooperative research program reports.
FTA will undertake these activities
through the National Aging and
Disability Transportation Center
(NADTC).
Recipients may continue to use a
competitive selection process to select
projects, but it is not required. A State
may transfer apportioned funds between
small urbanized areas and rural areas if
it can certify that the needs are being
met in the area to which the funds were
originally apportioned. The State can
transfer the funds (rural and small
urbanized area) to any area within the
state if a statewide program for section
5310 is established. There are no
administrative or statutory provisions to

permit transferring section 5310 funds
to other FTA programs nor is there a
provision for large urbanized areas to
transfer their funds to the State.
Section 5310 program recipients may
continue to partner with meal delivery
programs such as the OAA-funded meal
programs (to find local programs, visit:
www.Eldercare.gov) and the USDA
Summer Food Service Program http://
www.fns.usda.gov/sfsp/summer-foodservice-program-sfsp. Transit service
providers receiving 5310 funds may
coordinate and assist in providing meal
delivery services on a regular basis as
long as this does not conflict with the
provision of transit services.
Program Guidance is found in FTA
Circular 9070.1G, Enhanced Mobility of
Seniors and Individuals with
Disabilities Program Guidance and
Application Instructions, dated July 7,
2014. FTA is in the process of updating
the program circular to incorporate
changes resulting from the FAST Act.
Section 3006(b) of the FAST Act
creates a new discretionary pilot
program for innovative coordinated
access and mobility that is discussed in
section III of this notice. The Federal
share is 80% for capital projects and
50% for operating assistance. Match can
come from other Federal (non-DOT)
funds. A report will be made available
by December 31 of each year on the
pilot program. The report will include a
detailed description of the activities
carried out under the pilot program, and
an evaluation of the program, including
an evaluation of the performance
measures.
In addition, Section 3006(c) of the
FAST Act includes Coordinated
Mobility, which requires that FTA
implement recommendations made by
the Interagency Transportation
Coordination Council on Access and
Mobility (CCAM) 2005 Report to the
President relating to the implementation
of Executive Order No. 13330 (49 U.S.C.
101) including publishing an updated

strategic plan and developing a costsharing policy. The cost-sharing policy
must be developed in compliance with
applicable Federal laws for use by
grantees of Federal programs funded by
members of the CCAM. The cost
allocation model developed under this
section will facilitate local coordination
efforts and include: Eligibility
requirements; service delivery
requirements; and reimbursement
requirements.
F. Formula Grants for Rural Areas
Program (49 U.S.C. 5311)
The Rural Areas program provides
formula funding to States and Indian
tribes for the purpose of supporting
public transportation in areas with a
population of less than 50,000. Funding
may be used for capital, operating,
planning, job access and reverse
commute projects, and State
administration expenses. Eligible subrecipients include State and local
governmental authorities, Indian Tribes,
private non-profit organizations, and
private operators of public
transportation services, including
intercity bus companies. Indian Tribes
are also eligible direct recipients under
section 5311, both for funds
apportioned to the States and for
projects apportioned or selected to be
funded with funds set aside for a
separate Tribal Transit Program. For
more information about the Formula
Grants for Rural Areas program, contact
Marianne Stock, Office of Transit
Programs, at (202) 366–2677 or
[email protected].
1. Authorized Amounts
The FAST Act authorizes
$619,956,600 in FY 2016, $632,355,120
in FY2017, $645,634,578 in FY2018,
$659,322,031 in FY2019, and
$673,299,658 in 2020 to provide
financial assistance for rural areas under
section 5311.

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$619,956,000

$632,355,120

$645,634,578

$659,322,031

$673,299,658

In addition to the funds made
available to States under section 5311,
approximately 16 percent of the funds
authorized for the new section 5340
Growing States and High Density States
formula factors will be apportioned to
States for use in rural areas.
Funding for oversight, the Rural
Transportation Assistance Program
(RTAP), Tribal Transit Program, and the
Appalachian Development Public
Transportation Assistance Program will

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be deducted before amounts are
apportioned to the States.
2. FY 2016 Funding Availability
In FY 2016, $619,956,000 is available
for the section 5311 program for the
period October 1, 2015 through
September 30, 2016.

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FORMULA GRANTS FOR RURAL AREAS
PROGRAM—FY 2016
Total Appropriation .............
Oversight Deductions .........
RTAP Takedown ................
Tribal Takedown .................
Appalachian Takedown ......
Section 5340 Growing
States ..............................
Total Apportioned ............

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16FEN2

$619,956,000
(3,099,780)
(12,399,120)
(35,000,000)
(20,000,000)
77,353,084
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Federal Register / Vol. 81, No. 30 / Tuesday, February 16, 2016 / Notices
Table 12 displays the amounts
apportioned to the States under the
Formula Grants for Rural Areas
Program.

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3. Basis for Formula Apportionment
The FAST Act made no changes to the
formula for the Rural Areas Program.
FTA apportions section 5311 funds to
the states by a statutory formula using
the latest available U.S. decennial
census data. The majority of rural
formula funds (83.15 percent) are
apportioned based on land area and
population factors. In this first tier, no
state may receive more than 5 percent
of the amount apportioned on the basis
of land area. The remaining rural
formula funds (16.85 percent) are
apportioned based on land area, vehicle
revenue miles, and low-income
individuals factors. In this second tier,
no state may receive more than 5
percent of the amount apportioned on
the basis of land area, or more than 5
percent of the amounts apportioned for
vehicle revenue miles. In addition to
funds made available under Section
5311, FTA adds amounts apportioned
based on rural population according to
the growing states formula factors of 49
U.S.C. 5340 to the amounts apportioned
to the states under the Section 5311
formula. Before FTA apportions Section
5311 funds to the states, FTA subtracts
funding from the total available
amounts for the Appalachian
Development Transportation Assistance
Program, the Tribal Transit Program, the
Rural Transportation Assistance
Program (RTAP), and FTA oversight
activities.
Data from the Rural Module of the
National Transit Database (NTD) 2014
Report Year was used for this
apportionment, including data from
directly-reporting Indian tribes. Data
from public transportation systems that
reported to the Annual (Urbanized Area)
Module, and that was not attributable to
an urbanized area, was also included.
The section 5311 program includes
three takedowns: The Appalachian
Development Public Transportation
Assistance Program; the Rural Transit
Assistance Program (RTAP); and the
Tribal Transit Program. These separate
programs are described in the sections
that follow.
4. Eligible Expenses
The section 5311 program provides
funding for capital, operating, planning,
job access and reverse commute
projects, and administration expenses
for public transit service in rural areas
under 50,000 in population. The
planning activities undertaken with
section 5311 funds are in addition to

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those awarded to the State under section
5305 and must be used specifically for
rural areas’ needs. Job access and
reverse commute projects are also
eligible under this program.
a. Intercity Bus Transportation
Each State must continue to spend no
less than 15 percent of its annual Rural
Areas Formula apportionment for the
development and support of intercity
bus transportation, unless it can certify,
after consultation with affected intercity
bus service providers, that the intercity
bus service needs of the State are
adequately being met. FTA continues to
encourage consultation with other
stakeholders, such as communities
affected by loss of intercity service. The
FAST Act amended the intercity bus
service match requirement in 49 U.S.C.
5311(g)(3) and now allows the cost of an
unsubsidized portion of privately
provided intercity bus service that
connects feeder service, including all
operating and capital costs of such
service whether or not offset by revenue
from such service to be used as in-kind
local match for the intercity bus
projects. FTA will update the Section
5311program circular to include this
change.
b. State Administration
The FAST Act did not change the
amount available to States for
administration, planning, and technical
assistance. States may elect to use up to
10 percent of their apportionment at 100
percent Federal share to administer the
section 5311 program and provide
technical assistance to subrecipients.
Technical assistance includes project
planning, program and management
development, public transportation
coordination activities, and research the
State considers appropriate to promote
effective delivery of public
transportation to rural areas.
c. Eligibility for Safety Certification
Training
Recipients of section 5311 funds are
permitted to use not more than 0.5
percent of their formula funds under the
Rural Areas program to pay not more
than eighty percent of the cost of
participation for an employee who is
directly responsible for safety oversight
to participate in public transportation
safety certification training. Safety
certification training program
requirements are established in
accordance with section 5329.
5. Requirements
The program requirements under this
section are generally unchanged, with
the exception of the cross-cutting

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7909

requirements mentioned in section III.D.
of this notice and specific subsections
outlined below.
The Federal share for capital
assistance is 80 percent and for
operating assistance is 50 percent,
except that States eligible for the sliding
scale match under FHWA programs may
use that match ratio for section 5311
capital projects and 62.5 percent of the
sliding scale capital match ratio for
operating projects. This is not changed
under the current authorization.
Each State prepares an annual
program of projects, which must
provide for fair and equitable
distribution of funds within the States,
including Indian reservations, and must
provide for maximum feasible
coordination with transportation
services assisted by other Federal
sources.
Additional program guidance for the
Rural Areas Program is found in FTA
Circular 9040.1G, Formula Grants for
Rural Areas: Program Guidance and
Application Instructions, dated October
24, 2014, and is supplemented by
additional information and changes
provided in this notice and that may be
posted to FTA’s section 5311 Web page.
FTA is in the process of updating the
program circular to incorporate changes
resulting from FAST Act amendments to
49 U.S.C. 5311.
The following subsections outline
several important program requirements
and changes that apply specifically to
the section 5311 program.
6. Period of Availability
Section 5311 funds remain available
to states for obligation for three Federal
fiscal years, beginning with the year of
apportionment plus two additional
years. The Rural Areas program funds
apportioned in this notice are available
for obligation during FY 2016 plus two
additional years. Any FY 2016
apportioned funds that remain
unobligated at the close of business on
September 30, 2018 will revert to FTA
for reapportionment under the Rural
Areas program.
7. What’s New and Other Program
Highlights
Revenue from the sale of advertising
and concessions may be used as local
match. The capital and operating costs,
with no revenue offset, of an
unsubsidized portion of privately
provided intercity bus service that
connects feeder service can be used as
in-kind local match for the intercity bus
projects.

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G. Rural Transportation Assistance
Program (49 U.S.C. 5311(b)(3))
This program is not changed in the
FAST Act and continues to provide
funding to assist in the design and
implementation of training and
technical assistance projects, research,
and other support services tailored to
meet the needs of transit operators in

rural areas. For more information about
Rural Transportation Assistance
Program (RTAP) contact Marianne
Stock, Office of Transit Programs, at
(202) 366–2677 or marianne.stock@
dot.gov.
1. Authorized Amounts
The Fast Act authorizes a two percent
takedown from the funds appropriated

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .................................................................

$12,399,120

$12,647,102

$12,912,692

$13,186,441

$134,659,93

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

RURAL TRANSPORTATION ASSISTANCE
PROGRAM—FY 2016
Total Appropriation ...............
National RTAP ......................

5. Requirements
States may use the funds to undertake
research, training, technical assistance,
and other support services to meet the
needs of transit operators in rural areas.
These funds are to be used in
conjunction with a State’s
administration of the Rural Areas
Formula Program, but also may support
the rural components of the section
5310 program.

$12,399,120
¥1,859,868

6. Period of Availability
The section 5311 RTAP funds
Total Apportioned ..............
10,539,252 apportioned in this notice are available
for obligation in FY 2016 plus two
Table 12 shows the FY 2016 RTAP
additional years, consistent with that
allocations to the States.
established for the section 5311
program.
3. Basis for Formula Apportionment
FTA will continue to allocate funds to 7. What’s New and Other Program
the States by an administrative formula. Highlights
The National RTAP project is
First, FTA allocates $65,000 to each
administered by cooperative agreement
State ($10,000 to territories), and then
and re-competed at five-year intervals.
allocates the balance based on rural
In July of 2014, FTA awarded a
population in the 2010 census.
cooperative agreement to Neponset
4. Eligible Expenses
Valley Transportation Management
Eligible expenses include the design
Association to administer the National
and implementation of training and
RTAP Program. The National RTAP
technical assistance projects, research,
projects are guided by a project review
and other support services tailored to
board that consists of managers of rural
meet the needs of transit operators in
transit systems and State DOT RTAP
rural areas.
programs. National RTAP resources also

support the biennial TRB National
Conference on Rural Public and
Intercity Bus Transportation and other
research and technical assistance
projects of a national scope.
H. Appalachian Development Public
Transportation Assistance Program (49
U.S.C. 5311(c)(2))
This program continues as a takedown under the section 5311 program to
provide additional funding to support
public transportation in the
Appalachian region. There are sixteen
eligible States that receive an allocation
under this provision. The States and
their allocation are shown in the Rural
Areas Formula program table posted on
FTA’s Web site under the FY 2013
Apportionments page. For more
information about the Appalachian
Development Public Transportation
Assistance Program, contact Marianne
Stock, Office of Transit Programs, at
(202) 366–2677 or marianne.stock@
dot.gov.
1. Authorized Amounts
The FAST Act authorizes $20 million
in each of FY 2016 through FY 2020 as
a take-down under the section 5311
program to support public
transportation in the Appalachian
region.

Fiscal year

2016

2017

2018

2019

2010

Funds Authorized .................................................................

$20,000,000

$20,000,000

$20,000,000

$20,000,000

$20,000,000

2. FY 2016 Funding Availability

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for section 5311 for RTAP. Of this
amount, 15 percent is reserved for the
National RTAP program. The remainder
is available for allocation to the States.
The Fast Act authorizes the following
amounts to carry out this program for
fiscal years 2016–2020.

3. Basis for Formula Apportionment

FTA apportions the funds using
percentages established under section
9.5(b) of the Appalachian Regional
Commission Code (subtitle IV of title
APPALACHIAN DEVELOPMENT PUBLIC 40). Allocations are based in general on
TRANSPORTATION ASSISTANCE PRO- each State’s remaining estimated need
to complete eligible sections of the
GRAM—FY 2016
Appalachian Development Highway
System as determined from the latest
Total Appropriation ...............
$20,000,000
percentages of available cost estimates
Total Apportioned .................
20,000,000
for completion of the System. Such cost

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

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estimates are produced at approximate
five year intervals. Allocations contain
upper and lower limits in amounts
determined by the Commission and are
made in accordance with legislative
instructions.
4. Requirements
Funds apportioned under this
program can be used for purposes
consistent with section 5311 to support
public transportation in the

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Appalachian region. Funds can be
applied for in the State’s annual section
5311 grant.
Appalachian program funds that
cannot be used for operating may be
used for a highway project under certain
circumstances. States should contact
their regional office if they intend to
request a transfer. Additional
information about the requirements for
this section can be found in Chapter VII
of FTA Circular 9040.1G, Formula
Grants for Rural Areas: Program
Guidance and Application Instructions,
dated October 24, 2014.
5. Period of Availability
Section 5311 Appalachian program
funds are available for three years,
which includes the year of
apportionment plus two additional
years, consistent with that established
for the section 5311 program.
I. Formula Grants for Public
Transportation on Indian Reservations
Program (49 U.S.C. 5311(j))
The Public Transportation on Indian
Reservations Program or Tribal Transit
Program (TTP) totals $35 million, of
which $30 million is for a formula
program and $5 million is for a
discretionary grant program. It is funded
as a takedown from funds made
available for the section 5311 program.
Formula factors include vehicle revenue
miles and the number of low-income
individuals residing on tribal lands
(American Indian Areas, Alaska Native
Areas, and Hawaiian Home Lands).
More information on the Discretionary
program can be found in section III.6 of
this notice. Eligible direct recipients are
Federally recognized Indian tribes and
Alaskan Native Villages providing
public transportation in rural areas. The
TTP funds are to be allocated for grants
to eligible recipients for any purpose
eligible under section 5311, which
includes capital, operating, planning,
job access and reverse commute
projects. For more information about the
Tribal Transit Program contact Elan
Flippin, Office of Transit Programs at
(202) 366–3800 or [email protected].

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1. Authorized Funding
Under the FAST Act, $35 million is
authorized in in each of FY 2016–FY
2020. Five million will be allocated on
a competitive basis and $30 million will
be allocated by formula.
2. FY 2016 Funding Availability
In FY 2016, $30,000,000 is made
available by formula as shown in the
table below.

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FORMULA GRANTS FOR PUBLIC TRANS- included in the TTP formula
PORTATION ON INDIAN RESERVA- apportionments. To be considered in the
FY 2016 formula apportionments, tribes
TIONS PROGRAM—FY 2016
Total Appropriation ...............
Total Apportioned .................

$30,000,000
30,000,000

3. Basis for Allocation
Funding is allocated by formula and
distributed to eligible Indian tribes
providing public transportation on tribal
lands. The formula apportionment
shown in Table 9 is based on a statutory
formula which includes three tiers.
Tiers 1 and 2 are based on data reported
to NTD by Indian tribes; Tier 3 is based
on 2009–2013 American Community
Survey data. The three tiers for the
formula are: Tier 1—50 percent based
on vehicle revenue miles reported to the
NTD; Tier 2—25 percent provided in
equal shares to Indian tribes reporting at
least 200,000 vehicle revenue miles to
the NTD; Tier 3—25 percent based on
Indian tribes providing public
transportation on tribal lands (American
Indian Areas, Alaska Native Areas, and
Hawaiian Home Lands) on which more
than 1,000 low income individuals
reside. If more than one tribe provides
public transportation services on tribal
lands in a single Tribal Statistical area,
and the tribes cannot determine how to
allocate Tier 3 funds, FTA will allocate
the funds based on the relative portion
of transit (as defined by unlinked
passenger trips) operated by each tribe,
as reported to the National Transit
Database.
4. Requirements
Formula funds apportioned under this
program can be used for purposes
consistent with section 5311 to support
public transportation on Indian
Reservations in rural areas. Funds
allocated under the discretionary
program must be used consistent with
the tribe’s proposal and the allocation
notice published in the Federal
Register, which is used to announce the
selected projects. Eligible recipients
under both the discretionary and
formula program include federallyrecognized Indian tribes or Alaska
native villages, groups, or communities
as identified by the U.S. Department of
the Interior Bureau of Indian Affairs
(BIA). A tribe must have the legal,
financial and technical capabilities to
receive and administer Federal funds.
Section 5335 requires NTD reporting
for all direct recipients of section 5311
funds. This reporting requirement has
and continues to apply to the Tribal
Transit Program. Tribes that provide
public transportation in rural areas are
reminded to report annually so they are

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should have submitted their reports to
the NTD no later than April 30, 2015;
voluntary reporting to the NTD is also
encouraged. Additionally, to be
considered for the FY 2017 formula
apportionment funds, tribes need to
submit their reports to the NTD no later
than April 30, 2016. Tribes needing
assistance with reporting to the NTD
should contact the NTD Helpline at 1–
888–252–0936 or [email protected].

5. Period of Availability
Funding for the TTP is available for
three years, which includes the year of
apportionment or allocation plus two
additional years, consistent with that
established for the section 5311
program. Any FY 2016 formula funds
that remain unobligated at the close of
business on September 30, 2018 will
revert to FTA for reapportionment
under the TTP.
6. What’s New and Other Program
Highlights
The FAST Act establishes a Tribal
Transportation Self Governance
Program (Self Governance). The Self
Governance Program establishes specific
criteria for determining eligibility for a
tribe to participate in the program. DOT
will develop rulemaking and the
implementation of this program in
consultation with tribal representatives
and other interested stakeholders. See
section III. 6 of this notice for more
information.
The funds set aside for the TTP are
not meant to replace or reduce funds
that Indian tribes receive from States
through the section 5311 program but
are to be used to enhance public
transportation on Indian reservations
and transit serving tribal communities.
Funds allocated to Indian tribes by the
States may be included in the State’s
section 5311 application or awarded by
FTA in a grant directly to the Indian
tribe. FTA encourages Indian tribes
intending to apply to FTA as direct
recipients to contact the appropriate
FTA Regional Office at the earliest
opportunity.
TTP grantees must comply with all
applicable Federal statutes, regulations,
executive orders, FTA circulars, and
other Federal requirements in carrying
out the project supported by the FTA
grant. To assist tribes with
understanding these requirements, FTA
regularly conducts Tribal Transit
Technical Assistance Workshops, and
expects to offer several workshops in
FY2016. FTA has also expanded its
technical assistance to tribes receiving

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funds under this program. In FY15, FTA
implemented the Tribal Transit
Technical Assistance Assessments
initiative. Through these assessments,
FTA collaborates with tribal transit
leaders to review processes and identify
areas in need of improvement and then
assist with solutions to address these
needs—all in a supportive and mutually
beneficial manner. FTA completed
fifteen assessments in FY15, and
expects to do a similar number in FY
2016. These assessments include
discussions of compliance areas
pursuant to the Master Agreement, a site
visit, promising practices reviews, and
technical assistance from FTA and its
contractors. These workshops and
assessments received exemplary
feedback from Tribal Transit Leaders,
and provided FTA with invaluable
opportunities to learn more about tribal
transit leaders’ perspectives, and honor
the sovereignty of tribal nations. FTA

will post information about upcoming
workshops to its Web site and will
disseminate information about the
reviews through its Regional offices.
FTA has regional tribal transit liaisons
in each of the FTA Regional Offices that
are available to assist tribes with
applying for and managing FTA grants.
A list of regional tribal transit liaisons
can be found on FTA’s Web site at
http://www.fta.dot.gov/13094_
15845.html. Tribes are encouraged to
work directly with their regional tribal
transit liaison. For more information
about the Tribal Transit Program, please
contact E´lan Flippin at elan.flippin@
dot.gov or 202–366–3800.
J. Public Transportation Innovation (49
U.S.C. 5312)
Section 5312 is FTA’s research
program. Within this section, the FAST
Act authorizes several different
activities that comprise three distinct

1. Authorized Funding
The FAST Act authorizes $48 million
for FY 2016 through FY 2020 for the
Public Transportation Innovation
program as shown in the table below,
$28 million from the Mass Transit
Account of the Highway Trust Fund and
$20 million from General Fund
appropriations.

Fiscal year

2016

2017

2018

2019

2020

Public Transportation Innovation .........................................

$48,000,000

$48,000,000

$48,000,000

$48,000,000

$48,000,000

2. FY 2016 Funding Availability

4. Eligible Expenses

In FY 2016, $28,000,000 is available
for the Public Transportation Innovation
program as shown in the table below.

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

PUBLIC TRANSPORTATION
INNOVATION—FY 2016

5. Requirements
Research, Development,
Demonstration, Deployment, & Evaluation ............
Low or No Emission Vehicle
Component Testing ...........
Transit Cooperative Research Program (TCRP) ...

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programs: (a) A Research, Development,
Demonstration, Deployment, &
Evaluation program (49 U.S.C. 5312(b–
e)); (b) a Low or No Emission Vehicle
Component Assessment (Lo-No
Component Testing program) (49 U.S.C.
5312(h)); and (c) a Transit Cooperative
Research Program (49 U.S.C. 5312(i)).
For more information about the Public
Transportation Innovation program,
contact Mary Leary, Office of Research,
Demonstration and Innovation at (202)
366–4052 or [email protected]

The Government share of the cost of
a
project
carried out under FTA’s
$20,000,000
Research, Development, Deployment,
3,000,000 and Demonstration program shall not
exceed 80 percent; the remaining 20
5,000,000 percent of the costs can be met with inkind resources. In some cases, FTA may
Total Apportioned ..............
28,000,000 require a higher non-Federal share if
FTA determines a recipient would
obtain a clear and direct financial
3. Basis for Allocation of Funds
benefit from the project, or if the nonSection 5312 funds are allocated
Federal share is an evaluation factor
according to the authorized purposes
under a competitive selection process.
and amounts described above, and then However, for the Lo-No Component
remaining amounts are subject to
Testing Program, the Government share
is 50 percent; the remaining 50 percent
discretionary allocations where not
of the costs will be paid by amounts
specifically authorized. For FY 2016,
recovered through the fees established
FTA intends to fund projects and
by the testing facilities. There is no
activities in support of three major
match requirement for the TCRP.
areas: Asset Innovation and
Application instructions and program
Management, Mobility, and Safety.
management guidelines are set forth in
Projects may be selected through
Notices of Funding Availability (NOFA) FTA Circular C 6100.1E, Technology
Development and Deployment,
or Requests for Proposals (RFPs).
‘‘Research, Technical Assistance and
Potential recipients can register to
Training Program: Application
receive notification of funding
Instructions and Program Management
availability under this program on
Guidelines’’ dated April 10, 2015. All
Grants.gov.
research recipients are required to work

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with FTA to develop approved
Statements of Work. FTA will be
updating the Circular for the Research
program during FY 2016.
6. Period of Availability
FTA establishes the period in which
the funds must be obligated to the
project. If the funds are not obligated
within that period of time, they revert
to FTA for reallocation under the
program.
7. What’s New and Other Program
Highlights
The FAST Act amends 49 U.S.C. 5312
to create a new voluntary Lo-No
Component Testing Program, which is
separate and apart from the Bus Testing
Program (Section 5318) and is
authorized at $3 million annually.
The annual Research Report on
projects, evaluations, and benefits will
be posted to FTA’s Web site rather than
submitted to the Congress.
Section 6019(b) of the FAST Act
establishes new requirements for annual
modal research plans in 49 U.S.C. 6501.
This section requires FTA to submit its
comprehensive annual modal research
plan to the Assistant Secretary for
Research and Technology for review
and approval prior to expending funds.
Pursuant to the Small Business
Innovation Development Act, a portion
of the 5312 funds must be set aside for
the Department’s SBIR program to
address high priority research that will
demonstrate innovative, economic,

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accurate, and durable technologies,
devices, applications, or solutions to
significantly improve current transitrelated service including transit vehicle
operation, safety, infrastructure and
environmental sustainability, mobility,
rider experience, or broadband
communication.
K. Technical Assistance and Workforce
Development (49 U.S.C. 5314)
The Technical Assistance and
Workforce Development program, 49
U.S.C. 5314, provides assistance to: (1)
Carry out technical assistance activities
that enable more effective and efficient
delivery of transportation services,
foster compliance with Federal laws,
and improve public transportation
service; (2) develop standards and best

standards development, and workforce
development activities.
For more information about the
Technical Assistance and Workforce
Development program, contact Betty
Jackson, Office of Research,
Demonstration and Innovation at (202)
366–4052 or [email protected].
1. Authorized Amounts
The FAST Act authorizes $14 million
for each of FY 2016 through FY 2020 for
the Technical Assistance and Workforce
Development program as shown in the
table below. $9 million is authorized
from the trust fund. Of this amount $5
million is for the National Transit
Institute (NTI). An additional $5 million
is authorized to be appropriated from
the General Fund of the Treasury.

Fiscal year

2016

2017

2018

2019

2020

Technical Assistance and Workforce Development ............

$14,000,000

$14,000,000

$14,000,000

$14,000,000

$14,000,000

2. FY 2016 Funding Availability
In FY 2016, $9,000,000 is available for
Technical Assistance and Workforce
Development as shown in the table
below.

TECHNICAL ASSISTANCE AND WORKFORCE DEVELOPMENT—FY 2016
Technical Assistance, Standards Development &
Human Resource Training
National Transit Institute .......

$4,000,000
5,000,000

Total Appropriated ............

$9,000,000

3. Basis for Allocation of Funds

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practices for the transit industry; and (3)
address public transportation workforce
needs through research, outreach,
training and the implementation of a
frontline workforce grant program, and
conduct training and educational
programs in support of the public
transportation industry.
Section 5314 is funded from the
Highway Trust Fund and is authorized
at $9 million a year for all five years,
with $5 million of that amount
specifically set-aside for a National
Transit Institute. FAST authorizes an
additional $5 million from the General
Fund that is subject to annual
appropriations; for FY 2016, there are
no additional appropriations from the
General Fund leaving a balance of $4
million to fund all technical assistance,

7913

Under section 5314, $5 million is
available for the NTI. The remaining $4
million will be allocated in support for
both FTA and USDOT strategic goals for
technical assistance, standards
development, and workforce
development. Projects may be selected
through Notices of Funding Availability
(NOFA) or Requests for Proposals
(RFPs). Potential recipients can register
to receive notification of funding
availability under this program on
Grants.gov. Once selected, FTA enters
into cooperative agreements, contracts,
or other agreements to award funds and
manage the projects carried out under
this section.
4. Eligible Expenses
Eligible expenses include activities
involving (a) Technical Assistance; (b)
Standards Development; and (c) Human
Resources and Training, to include
Workforce Development programs and
activities.

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Eligible Technical Assistance
activities may include activities to
support: (a) Compliance with the ADA;
(b) compliance with coordinating
planning and human services
transportation; (c) meeting the
transportation needs of elderly
individuals; (d) increasing transit
ridership in coordination with MPOs
and other entities, particularly around
transit-oriented development; (e)
addressing transportation equity with
regard to the effect that transportation
planning, investment, and operations
have for low-income and minority
individuals; (f) facilitating best practices
to promote bus driver safety; (g):
Compliance with Buy America and preand post-award audits; (h) assisting with
the development and deployment of low
and no emission vehicles or
components for vehicles; (i) and other
technical assistance activities that are
necessary to advance the interests of
public transportation.
Eligible Standards activities include
the development of voluntary and
consensus-based standards and best
practices by the industry to include
those needed for safety, fare collection,
intelligent transportation systems,
accessibility, procurement, security,
asset management, operations,
maintenance, vehicle propulsion,
communications, and vehicle
electronics.
Eligible Human Resources and
Training activities include (a)
employment training programs; (b)
outreach programs to increase
employment for veterans, females,
individuals with disabilities, minorities

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in public transportation activities; (c)
research on public transportation
personnel and training needs; (d)
training and assistance for veteran and
minority business opportunities; and (e)
consensus-based national training
standards and certifications in
partnership with industry stakeholders.
FTA funding directly allocated for these
eligible purposes must be done through
a discretionary frontline workforce
development program as required in the
authorization. Should FTA allocate
funds for these purposes, it will
advertise the available funding in a
Notice of Funding Availability (NOFA)
on Grants.gov and on its Web site. FTA
will be issuing additional guidance in
the coming months on how grantees can
utilize their formula funds in support of
these eligible activities.
5. Requirements
a. Federal Share
The Government’s share of the cost of
a project carried out using a grant under
this section shall not exceed 80 percent.
However, for the Human Resources and
Training, including the Innovative
Public Transportation Frontline
Workforce Development Program, the
Government’s share cannot exceed 50
percent. The Federal share for other
types of awards will be stated in the
agreement. In some cases, FTA may
require a higher non-Federal share if
FTA determines a recipient would
obtain a clear and direct financial
benefit from the project, or if the nonFederal share is an evaluation factor
under a competitive selection process.

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There is no match requirement for the
National Transit Institute.
b. Non-Government Share
The non-Government share of the cost
of a project carried out under these
sections (Technical Assistance and
Standards and Technical Assistance and
Training) may be derived from in-kind
contributions as defined in the most
current version of FTA Circular 5010,
‘‘Grants Management Guidelines’’ found
on FTA’s Circular Web page at (http://
www.fta.dot.gov/circulars). Application
instructions and program management
guidelines are set forth in FTA Circular
6100.1E, ‘‘Research, Technical
Assistance and Training Program:
Application Instructions and Program
Management Guidelines’’ dated April
10, 2015. All research recipients are
required to work with FTA to develop
approved Statements of Work.
5. Period of Availability
FTA establishes the period in which
the funds must be obligated to the
project. If the funds are not obligated
within that period of time, they revert
to FTA for reallocation under the
program.

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6. What’s New and Other Program
Highlights
Under 49 U.S.C. 5314(b)(4), recipients
may use no more than one-half of one
percent (0.5%) of their section 5307,
5337 and 5339 funds to support
workforce development activities. In
addition, 49 U.S.C. 5314(c)(4) allows
recipients to use no more than one-half
of one percent (0.5%) of their 5307,
5337, and 5339 funds to attend NTI
training. Both provisions allow
recipients to use these funds to pay up
to 80 percent of the cost of training. This
amounts to approximately $36 million
in formula funds that grantees can use
to support workforce development
activities and another $36 million that
can be used to support NTI training
activities. For more information about
the NTI, contact Faith Hall, Office of

Research, Demonstration and
Innovation at (202) 366–9055 or
[email protected].
FTA is required to publish an annual
report to Congress on the technical
assistance and standards activities that
receive assistance under this section.
Additionally, FTA must report annually
on the Frontline Workforce
Development Program.
L. Public Transportation Emergency
Relief Program (49 U.S.C. 5324)
FTA’s Emergency Relief (ER) Program
is authorized to provide funding for
public transportation expenses incurred
as a result of an emergency or major
disaster. No funding was provided in
the FY 2016 Appropriations Act for this
program.
In the event of a publicly declared
emergency or disaster, eligible expenses
will include emergency operating
expenses, such as evacuations, rescue
operations, and expenses incurred to
protect assets in advance of a disaster,
as well as capital projects to protect,
repair, reconstruct, or replace
equipment and facilities of a public
transportation system in the United
States or on an Indian reservation that
the Secretary determines is in danger of
suffering serious damage or has suffered
serious damage as a result of an
emergency. Additional information on
eligible expenses and the process for
applying for ER Program funding can be
found in FTA’s Emergency Relief
Manual: A Reference Manual for States
& Transit Agencies on Response and
Recovery from Declared Disasters and
FTA’s Emergency Relief Program (49
U.S.C. 5324), which was published on
October 5, 2015.
While Congress did not provide
funding for this program in FY 2016,
recipients of FTA funding affected by a
declared emergency or disaster are
authorized to use funds apportioned
under sections 5307 and 5311 for
emergency purposes. Recipients are
advised that formula funds used for
emergency purposes will not be

replaced or restored in the event that
funding is subsequently made available
through FTA under the ER Program or
by Federal Emergency Management
Agency (FEMA).
In the event of a disaster affecting a
public transportation system, the
affected recipient should contact their
FTA Regional Office as soon as
practicable to determine whether
Emergency Relief funds are available,
and to notify FTA that it plans to seek
reimbursement for emergency
operations and/or repairs that have
already taken place or are in process. If
Emergency Relief funds are unavailable
the recipient may seek reimbursement
from FEMA. Properly documented costs
for which the grantee has not received
reimbursement from FEMA may later be
reimbursed by grants made either from
section 5324 funding (if appropriated)
or sections 5307 and 5311 program
funding, once the eligible recipient
formally applies to FTA for
reimbursement and FTA determines
that the expenses are eligible for
emergency relief. Additional
information about the Emergency Relief
program and FTA’s response to
Hurricane Sandy is available on the
FTA Web site at www.fta.dot.gov/
emergencyrelief. For more information,
contact Adam Schildge, Office of
Program Management, at 202–366–0778
or [email protected].
M. Public Transportation Safety
Program (49 U.S.C. 5329)
Section 5329(e)(6) of 49 U.S.C.
provides funding to support States with
rail fixed guideway public
transportation systems (rail transit
systems) to develop and carry out State
Safety Oversight (SSO) Programs
consistent with the requirements of 49
U.S.C. 5329. For more information,
contact Maria Wright, Office of Safety
Review at (202) 366–5922 or
[email protected].
1. Authorized Amounts

Year

2016

2017

2018

2019

2010

Funds Authorized .................................................................

$22,694,529

$23,148,419

23,634,536

24,135,588

24,647,262

2. FY 2016 Funding Availability
In FY 2016, $22,694,529 is available
for the State Safety Oversight (SSO)
program. The total amount allocated for
the SSO program is as shown in the
table below.

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PUBLIC TRANSPORTATION SAFETY
PROGRAM—FY 2016
Total Appropriation ...............
Total Apportioned .................

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3. Basis for Formula Apportionment

FTA will continue to allocate funds to
the States by an administrative formula,
$22,694,529
which is detailed in the Federal
$22,694,529
Register notice which apportioned SSO
Formula Grant Program FY13 and FY14
funds (Vol. 79, No. 46/Monday, March

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10, 2014). Grant funds for the SSO
program are apportioned to eligible
States using a three-tier formula based
on statutory requirements, which
apportion sixty percent (60%) of
available funds based rail transit system
vehicle passenger miles (PMT), vehicle
revenue miles (VRM), and directional
route miles (DRM), twenty percent
(20%) of available funds equally to each
eligible State, and twenty percent (20%)
based on the number of rail transit
systems.
4. Requirements
FTA requires each applicant to
demonstrate in its grant application that
its proposed grant activities will
develop, lead to, or carry out an State
Safety Oversight program that meets the
requirements under 49 U.S.C. 5329(e).
Grant funds may be used for program
operational and administrative
expenses, including employee training
activities. Please see the Federal
Register notice which apportioned SSO
Formula Grant Program FY13 and FY14
funds (Vol. 79, No. 46/Monday, March
10, 2014) for more information.
5. Period of Availability
SSO Formula Grant Program funds are
available for the year of apportionment
plus two additional years. Any FY 2016

funds that remain unobligated at the
close of business on September 30, 2018
will revert to FTA for reapportionment
under the SSO Formula Grant Program.
6. What’s New and Other Program
Highlights
Under the FAST Act, section 5329
provides for a temporary Federal
assumption of rail transit safety
oversight, under certain circumstances.
This section also authorizes FTA to
issue restrictions and prohibitions to
address unsafe conditions or practices,
and to withhold funds for noncompliance with safety requirements.
N. State of Good Repair Program (49
U.S.C. 5337)
The State of Good Repair program
(SGR) provides capital assistance for
maintenance, replacement, and
rehabilitation projects of existing high
intensity fixed guideway and high
intensity motorbus systems to maintain
a state of good repair. Additionally, SGR
grants are eligible for developing and
implementing Transit Asset
Management plans. Estimates from the
2010 National State of Good Repair
Assessment identified an $86 billion
backlog in deferred maintenance and
replacement needs, a backlog that
continues to grow. This program

provides funding for the following fixed
guideway transit modes: Rapid rail
(heavy rail), commuter rail, light rail,
hybrid rail, monorail, automated
guideway, trolleybus (using overhead
catenary), aerial tramway, cable car,
inclined plane (funicular), passenger
ferries, and bus rapid transit. Fixedroute bus capital projects for services
operating on high-occupancy-vehicle
(HOV) facilities are also funded through
High Intensity Motorbus tier of this
program.
FTA published the State of Good
Repair program guidance, FTA Circular
5300.1, State of Good Repair Grants
Program: Guidance and Application
Instructions, on January 28, 2015. The
circular can be accessed at
www.fta.dot.gov/circulars. For more
information about the SGR program,
contact Eric Hu, Office of Transit
Programs, at (202) 366–0870 or eric.hu@
dot.gov.
1. Authorized Amounts
The FAST Act authorizes
$2,507,000,000 for FY 2016,
$2,549,670,000 for FY 2017,
$2,593,703,558 for FY 2018,
$2,638,366,859 for FY 2019, and
$2,683,798,369 for FY 2020 for the State
of Good Repair program.

Fiscal year

2016

2017

2018

2019

2020

Funds Authorized .............................................

$2,507,000,000

$2,549,670,000

$2,593,703,558

$2,638,366,859

$2,683,798,369

formula. Funds are apportioned to
urbanized areas with high intensity
In FY 2016, $2,507,000,000 is
fixed guideway and high intensity
available for the State of Good Repair
motorbus systems that have been in
program. After a one percent oversight
operation for at least seven years. This
takedown, the total amount allocated for means that only segments of high
the State of Good Repair program is
intensity fixed guideway and motorbus
$2,481,930,000 as shown in the table
systems that entered into revenue
below.
service on or before September 30, 2008
are included in the formula, as
STATE OF GOOD REPAIR PROGRAM— identified in the NTD.
FY 2016
The law requires that 97.15 percent of
the total amount authorized for the State
Total Appropriation ........... a $2,507,000,000 of Good Repair program be apportioned
Oversight Deductions .......
¥25,070,000 to urbanized areas with ‘‘High Intensity
Fixed Guideway’’ systems. The
Total Apportioned ..........
2,481,930,000
apportionments to urbanized areas with
a Total
appropriation
includes ‘‘High Intensity Fixed Guideway’’
$2,435,550,500 for the High Intensity Fixed systems are determined by two equal
Guideway Formula and $71,449,500 for the
elements: (1) The proportion of the
High Intensity Motorbus Formula.
amount an urbanized area would have
Table 15 shows the FY 2016 State of
received in FY 2011 to the total amount
Good Repair Program formula
apportioned to all urbanized areas in FY
apportionments to eligible urbanized
2011 using new fixed guideway
areas.
definition; (2) the proportion of vehicle
revenue miles of an urbanized area to
3. Basis for Formula Apportionment
the total vehicle revenue miles of all
FTA allocates State of Good Repair
urbanized areas and the proportion of
program funds according to a statutory
directional route miles of an urbanized
2. FY 2016 Funding Availability

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area to the total directional route miles
of all urbanized areas. High Intensity
Motorbus systems will receive the
remaining 2.85 percent of the total
amount authorized for the State of Good
Repair program, and the apportionments
to urbanized areas are based on vehicle
revenue miles and directional route
miles.
Vehicle revenue miles and directional
route miles attributable to an urbanized
area must be placed in revenue service
at least 7 years before the first day of the
fiscal year. A threshold level of more
than one mile of high intensity fixed
guideway is required in order to receive
State of Good Repair funds. Therefore,
urbanized areas reporting one mile or
less of fixed guideway mileage under
the NTD are not included. FTA will
apportion funds to designated recipients
in the UZAs (see section IV. C. of this
notice for more information about
designated recipients; FTA will
apportion section 5337 funds to the
section 5307 designated recipient for the
UZA) with high intensity fixed
guideway systems operating at least 7
years. The designated recipients will

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then allocate funds as appropriate to
recipients that are public entities in the
urbanized areas and provide split letters
to the FTA. FTA can make grants to
direct recipients after sub-allocation of
funds.
4. Eligible Expenses
Eligible activities include projects that
maintain, rehabilitate, and replace
transit assets, as well as projects that
implement Transit Asset Management
plan. Additionally, training and
workforce activities authorized under 49
U.S.C. 5314(b) and (c) are eligible for the
State of Good Repair funds, and the
funds are limited to 1 percent of the
total amount that apportioned to the
recipient (0.5 percent for each of the
authorized activities).
5. Requirements
In addition to the program guidance
found in the circular, all recipients will
need to certify that they will comply
with the forthcoming rule issued under
section 5326 for the Transit Asset
Management plan, and SGR projects
will need to be included in recipients’
Transit Asset Management plans. This
requirement is subject to FTA
rulemaking and will become effective
only after the rule is issued.

6. Period of Availability
The State of Good Repair Program
funds apportioned in this notice are
available for obligation during FY 2016
plus three additional years.
Accordingly, funds apportioned in FY
2016 must be obligated in grants by
September 30, 2019. Any FY 2016
apportioned funds that remain
unobligated at the close of business on
September 30, 2019 will revert to FTA
for reapportionment under the State of
Good Repair Program.
7. What’s New and Other Program
Highlights
High intensity motorbus funds may be
used for any project eligible under
section 5337(b)(1). Therefore, these
funds may be used to maintain rail fixed
guideways as well as to maintain high
intensity motorbus equipment and
facilities
Recipients may now use up to onehalf of one percent of their section 5307
funds to support workforce
development activities at an 80 percent
Federal share; the eligible workforce
development activities are defined in
Section 5314; see Section IV. K. of this
notice for more information. This
provision is new in section 5314 and is
in addition to the one-half of one
percent that recipients may use for

Fiscal year

2016

O. Grants for Buses and Bus Facilities
Program (49 U.S.C. 5339)
The section 5339 program provides
funding to replace, rehabilitate, and
purchase buses and related equipment
as well as construct bus-related
facilities.
Additional guidance on the section
5339(a) formula program can be found
in FTA Circular 5100.1, which was
published on May 18, 2015. This
circular will be updated to reflect the
amendments to section 5339 by the
FAST Act. Information on the 5339(b)
Buses and Bus Facilities Competitive
Grant Program and the Section 5339(c)
Low or No Emission Bus Competitive
Grant Program will be published in a
forthcoming Notice of Funding
Availability. For more information
about the Bus and Bus Facilities
program, contact Sam Snead, Office of
Transit Programs, at (202) 366–1089 or
[email protected].
1. Authorized Amounts
The FAST Act authorizes a total of
$695,800,000 for FY 2016, $719,960,000
for FY 2017, $747,030,000 for FY 2018,
$777,020,000 for FY 2019 and
$808,650,000 for FY 2020 for the section
5339 Program, as shown below.

2018

2019

2020

5339(a) Formula Program ...................................................
5339(b) Bus Discretionary ...................................................
5339(c) Low or No Emission Discretionary .........................

$427,800,000
213,000,000
55,000,000

$436,360,000
228,600,000
55,000,000

$445,519,476
246,514,000
55,000,000

$454,964,489
267,059,980
55,000,000

$464,609,736
289,044,179
55,000,000

Section 5339 Total ........................................................

695,800,000

719,960,000

747,033,476

777,024,469

808,653,915

2. Funding Availability
In FY 2016, $427,800,000 is available
for the section 5339(a) Bus and Bus
Facilities formula program. After the
0.75 percent take-down for oversight,
$424,591,500 is available to be
apportioned to States and urbanized
areas.

GRANTS FOR BUSES AND BUS
FACILITIES—FY 2015
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2017

training activities with the National
Transit Institute.

Total Appropriation (Formula) ...............................
Oversight Deduction ...........
Total Apportioned (Formula) ............................
Total Appropriation (Discretionary) ............................
Oversight Deduction ...........

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GRANTS FOR BUSES AND BUS
FACILITIES—FY 2015—Continued
Total to be Allocated
(Discretionary) .............

265,990,000

Table 17 shows the FY 2015 Bus and
Bus Facilities formula apportionments
to States, Territories, and urbanized
areas.
3. Basis for Allocation

Section 5339(a) Bus and Bus Facility
formula program funds are apportioned
$427,800,000 to States, territories, and designated
(3,208,500) recipients based on a statutory formula.
Under the National Distribution, each
424,591,500 State is allocated $1.75 million and each
territory is allocated $500,000 for use
268,000,000 anywhere in the State or territory. The
(2,010,000) remainder of the available funding is
then apportioned for UZAs based on

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population, vehicle revenue miles and
passenger miles using the same
apportionment formula and allocation
process as section 5307. Funds for UZAs
under 200,000 in population are
apportioned to the State through a
section 5339(a) Governor’s
Apportionment for allocation to eligible
recipients within such areas of the State
at the Governor’s discretion. Funds for
UZAs with populations of 200,000 or
more are apportioned directly to one or
more designated recipient(s) within
each UZA for allocation to eligible
projects and recipients within the UZA.
4. Eligible Expenses
Eligible capital projects continue to
include projects to replace, rehabilitate,
and purchase buses and related
equipment, and projects to construct
bus-related facilities.

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Recipients may now use up to onehalf of one percent of their section 5307
funds to support workforce
development activities at an 80 percent
Federal share; the eligible workforce
development activities are defined in
Section 5314; see Section IV. K. of this
notice for more information. This
provision is new in section 5314 and is
in addition to the one-half of one
percent that recipients may use for
training activities with the National
Transit Institute.
5. Requirements
The FAST Act modifies the definition
of eligible recipients under Section
5339(a) to now include local
governmental entities that operate fixed
route bus service. Accordingly eligible
recipients now include (1) designated
recipients that allocate funds to fixed
route bus operators, (2) States, and (3)
local governmental entities that operate
fixed route bus service and are direct
recipients of Section 5307 funding.
Eligible subrecipients continue to
include public agencies or private
nonprofit organizations engaged in
public transportation, including those
providing services open to a segment of
the general public, as defined by age,
disability, or low income. Consistent
with the application of other changes
under the FAST Act, this change to the
definition of eligible recipients applies
to funding apportioned in previous
fiscal years that remains available for
obligation.
The requirements of section 5307
apply to recipients of section 5339
funds within an urbanized area. The
requirements of Section 5311 apply to
recipients of section 5339 funds within
rural areas. For additional program
requirements, refer to FTA Circular
5100.1.

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6. Period of Availability
The Bus and Bus Facilities Formula
Program funds apportioned in this
notice are available for obligation during
FY 2016 plus three additional years.
Accordingly, funds apportioned in FY
2016 must be obligated in grants by
September 30, 2019. Any FY 2016
apportioned funds that remain
unobligated at the close of business on
September 30, 2019 will revert to FTA
for reapportionment under the Bus and
Bus Facilities Formula Program.
Discretionary program funds
authorized under section 5339(b) and (c)
(Bus and LoNo) follow the same period
of availability: Year of allocation plus
three additional years.

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7. What’s New and Other Program
Highlights
a. Cost Effective Capital Investment
Pilot Program (49 U.S.C. 5339(a)(9)
Although it does not provide
additional funding, as authorized under
section 5339(a)(9), FTA is establishing a
pilot program to allow designated
recipients in urbanized areas between
200,000 and 1 million in population to
elect to pool their section 5339(a)
formula allocations with other
designated recipients within their
respective states. The purpose of this
provision is to allow for the transfer of
formula funding within a State in a
manner that supports the transit asset
management plans of the participating
designated recipients.
A State that intends to participate in
this pilot program beginning in FY 2016
must submit a request to establish a
State Pool to the FTA section 5339
Program Manager, Samuel Snead,
([email protected]) by March 31,
2016. The request must identify the
urbanized areas that will participate in
the pool for FY 2016, and must include
a letter from each participating
designated recipient, and from any
affected eligible recipients of 5339(a)
funds within the urbanized area,
indicating their intention to participate
in this pooling provision for FY 2016.
An urbanized area that participates in a
State Pool must contribute its entire
section 5339(a) apportionment for the
fiscal years in which it participates in
the pool. A designated recipient for a
multistate area may participate in only
one State Pool. A State that does not
establish a State Pool in FY 2016 may
choose to begin participating in this
provision in a future fiscal year, but
should be aware that the benefits of
pooling program funds will be
diminished over a shorter duration.
For FY 2016, the request must specify
the proposed distribution of the pooled
funding and must provide a detailed
explanation of how this distribution
will support the transit asset
management plans of each participating
designated recipient, including any
eligible recipients to which the
designated recipient will allocate
funding. Upon approval, FTA will make
the requested amounts of program
funding available to the urbanized areas
as directed in the request.
A State that elects to participate in
this pilot program will be required to
develop an allocation plan for the
period of fiscal years 2016 through 2020
that ensures that a designated recipient
participating in the State’s pool receives
under the program an amount of funds
that equals the amount of funds that

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7917

would have otherwise been available to
the designated recipient for that period
pursuant to the formulas provided. The
amounts in the State Pool will be
apportioned separately from funds
apportioned to the State under the
Governor’s Apportionment for
urbanized areas under 200,000 in
population, and will be made available
directly by FTA to the participating
urbanized areas, as directed in the
approved allocation plan. An allocation
plan may be revised for future fiscal
years, provided that it remains
compliant with the requirement to
ensure equity over the period the pool
is in effect.
Approved requests to establish a State
Pool for the specified UZAs will remain
in effect until cancelled at the request of
the State or one or more designated
recipients. If a State or designated
recipient elects to end its participation
in this pooling provision in any future
fiscal year, FTA will adjust the formula
allocations so that the total amount that
each affected urbanized area has
received over the fiscal years in which
it participated, plus the following
apportionment, equals the amount it
would have received over this period
had it not participated in the State pool.
Adjustments will be made using the
formula apportionment factors used for
each of the affected fiscal years.
After the pools are determined, FTA
will publish a supplementary table
showing the participating UZAs, the
State total, and the amounts for each
UZA for FY 2016. In future years, the
States must provide the amounts
determined by August 31 (in an updated
allocation plan), so that FTA can
publish the breakdowns and make the
funds available in the Apportionment
Notice.
b. Program Management Plans
As a result of the changes to the
definition of eligible recipients under
the FAST Act, designated recipients are
no longer required to obligate grants on
behalf of entities that are eligible direct
recipients of Section 5307 funds.
Accordingly, FTA no longer requires
designated recipients to maintain
program management plans (PMPs) if
they do not manage any sub-awards of
section 5339 funds.
P. Growing States and High Density
States Formula Factors (49 U.S.C. 5340)
The FAST Act continues the use of
formula factors to distribute additional
funds to the section 5307 and section
5311 programs for Growing States and
High Density States. FTA will continue
to publish single urbanized and rural
apportionments that show the total

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amount for 5307 and 5311 programs that
includes section 5340 apportionments
for these programs.

1. Authorized Amounts
The FAST Act authorizes
$536,261,539 for FY 2016, $544,433,788
for FY 2017, $552,783,547 for FY 2018,

Fiscal year

2016

2017

2018

2019

2020

Growing States ....................................................................
High Density States .............................................................

$272,297,082
263,964,457

$279,129,509
265,304,279

$286,132,747
266,650,800

$293,311,066
268,004,054

$300,668,843
269,364,074

Total Funds Authorized ................................................

536,261,539

544,433,788

552,783,547

561,315,120

570,032,917

population density equal to or greater
than 370 persons per square mile. Based
on this threshold and 2010 Census data,
the States that qualify are Maryland,
Delaware, Massachusetts, Connecticut,
Rhode Island, New York and New Jersey
(these are the same States that qualified
under SAFETEA–LU and based on 2000
Census data). The amount of funds
GROWING STATES AND HIGH DENSITY provided to each of these seven States
STATES FORMULA FACTORS—FY 2016 is allocated on the basis of the
population density of the individual
State relative to the population density
Total Appropriation ...............
$536,261,539
Total Apportioned .................
536,261,539 of all seven States. Once funds are
allocated to each State, funds are then
allocated to urbanized areas within the
3. Basis for Formula Apportionment
States on the basis of an individual
Under the Growing States portion of
urbanized area’s population relative to
the section 5340 formula, FTA projects
the population of all urbanized areas in
each State’s 2025 population by
that State.
comparing each State’s apportionment
Q. Washington Metropolitan Area
year population (as determined by the
Transit Authority Grants
Census Bureau) to the State’s 2010
Census population and extrapolating to
Under the FY 2016 Appropriations
2025 based on each State’s rate of
Act, $150 million is available for the
population growth between 2010 and
period October 1, 2015 through
the apportionment year. Each State
September 30, 2016 for grants to the
receives a share of Growing States funds Washington Metropolitan Area Transit
on the basis of its projected 2025
Authority (WMATA). After the one
population relative to the nationwide
percent oversight takedown, $148.5
projected 2025 population.
million is available for obligation. Such
Once each State’s share is calculated,
funding is authorized under section 601
funds attributable to that State are
of the Passenger Rail Investment and
divided into an urbanized area
Improvement Act of 2008. See Public
allocation and a non-urbanized area
Law 110–432, Division B, Title VI.
allocation on the basis of the percentage
of each State’s 2010 Census population
WASHINGTON METROPOLITAN AREA
that resides in urbanized and nonTRANSIT AUTHORITY GRANTS—FY
urbanized areas. Urbanized areas
2016
receive portions of their State’s
urbanized area allocation on the basis of Total Appropriation .............
$150,000,000
the 2010 Census population in that
Oversight Deduction ...........
(1,500,000)
urbanized area relative to the total 2010
Total Apportioned ............
148,500,000
Census population in all urbanized
areas in the State. These amounts are
Grants may be provided for capital
added to the Urbanized Area’s section
and preventive maintenance
5307 apportionment.
expenditures for WMATA after it has
The States’ rural area allocation is
been determined that WMATA has
added to the allocation that each State
receives under the section 5311 Formula placed the highest priority on
investments that will improve the safety
Grants for Rural Areas program.
The High Density States portion of the of the system, including but not limited
to fixing the track signal system,
section 5340 formula are allocated to
replacing 1000 series railcars, installing
urbanized areas in States with a
2. FY 2016 Funding Availability
In FY 2016, $536,261,539 is available
for apportionment in accordance with
the formula factors prescribed for
Growing States and High Density States
set forth in section 5340 for FY 2016.
The FAST Act did not change the
funding formula.

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$561,315,120 for FY 2019 and
$570,032,917 for FY 2020 for the
Growing States and High Density States
Formula factors, as shown below:

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guarded turnouts, buying equipment for
wayside worker protection, and
installing rollback protection on cars
that are not equipped with the safety
feature. FTA will communicate further
program requirements directly to
WMATA.
V. FTA Policy and Procedures for FY
2016 Grants
A. Automatic Pre-Award Authority To
Incur Project Costs
1. Caution to New Grantees
While FTA provides pre-award
authority to incur expenses before grant
award for formula programs, it
recommends that first-time grant
recipients NOT utilize this automatic
pre-award authority without verifying
with the appropriate FTA Regional
Office that all pre-requisite
requirements have been met. As a new
grantee, it is easy to misunderstand preaward authority conditions and be
unaware of all of the applicable FTA
requirements that must be met in order
to be reimbursed for project
expenditures incurred in advance of
grant award. FTA programs have
specific statutory requirements that are
often different from those for other
Federal grant programs with which new
grantees may be familiar. If funds are
expended for an ineligible project or
activity, or for an eligible activity but at
an inappropriate time (e.g., prior to
NEPA completion), FTA will be unable
to reimburse the project sponsor and, in
certain cases, the entire project may be
rendered ineligible for FTA assistance.
2. Policy
FTA provides pre-award authority to
incur expenses before grant award for
certain program areas described below.
This pre-award authority allows
grantees to incur certain project costs
before grant approval and retain the
eligibility of those costs for subsequent
reimbursement after grant approval. The
grantee assumes all risk and is
responsible for ensuring that all
conditions are met to retain eligibility.

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This pre-award spending authority
permits an eligible grantee to incur costs
on an eligible transit capital, operating,
planning, or administrative project
without prejudice to possible future
Federal participation in the cost of the
project. In this notice, FTA provides
pre-award authority through the
authorization period of the FAST Act
(October 1, 2015 through September 30,
2020) for capital assistance under all
formula programs, so long as the
conditions described below are met.
FTA provides pre-award authority for
planning and operating assistance under
the formula programs without regard to
the period of the authorization. All preaward authority is subject to conditions
and triggers stated below:

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a. Operating, Planning, or
Administrative Assistance
FTA does not impose additional
conditions on pre-award authority for
operating, planning, or administrative
assistance under the formula grant
programs. Grantees may be reimbursed
for expenses incurred before grant
award so long as funds have been
expended in accordance with all
Federal requirements, and the grantee is
otherwise eligible to receive the
funding. In addition to cross-cutting
Federal grant requirements, program
specific requirements must be met. For
example, a planning project must have
been included in a Unified Planning
Work Program (UPWP); a section 5310
project must have been included in a
coordinated public transit-human
services transportation plan
(coordinated plan) and selected by the
designated recipient before incurring
expenses; expenditures on State
Administration expenses under State
Administered programs must be
consistent with the State Management
Plan (as defined in FTA Circular
9040.1G, Chapter 6). Designated
recipients for section 5310 have preaward authority for the ten percent of
the apportionment they may use for
program administration.
b. Transit Capital Projects
For transit capital projects, the date
that costs may be incurred is: (1) For
design and environmental review, the
date of the authorization of formula
funds or the date of the announcement
of the discretionary allocation of funds
for the project; and (2) for property
acquisition, demolition, construction,
and acquisition of vehicles, equipment,
or construction materials for projects
that qualify for a categorical exclusion
pursuant to 23 CFR 771.118(c), the date
of the authorization of formula funds or
the date of the announcement of the

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discretionary allocation of funds for the
project; and (3) for property acquisition,
demolition, construction, and
acquisition of vehicles, equipment, or
construction materials for projects that
require a categorical exclusion pursuant
to 23 CFR 771.118(d), an environmental
assessment, or an environmental impact
statement, the date that FTA completes
the environmental review process
required by NEPA and its implementing
regulations by its issuance of a Section
771.118(d) categorical exclusion
determination, a Finding of No
Significant Impact (FONSI), or a Record
of Decision (ROD). For projects that
qualify for a categorical exclusion
pursuant to 23 CFR 771.118(c), if a
project is subsequently found not to
qualify for this CE, it will be ineligible
for FTA assistance. FTA recommends
that a grant applicant contact FTA’s
Regional Office for assistance in
determining the appropriate
environmental review process and level
of documentation necessary before
incurring costs for property acquisition,
demolition, construction, and
acquisition of vehicles, equipment, or
construction materials. In particular,
FTA encourages grant applicants to
contact FTA’s Regional Office before
exercising pre-award authority for
projects to which it believes a CE at 23
CFR 771.118(c)(8), (c)(9), (c)(10), (c)(12),
or (c)(13) applies. Before an applicant
may incur costs when pre-award
authority has not been granted, it must
first obtain a written Letter of No
Prejudice (LONP) from FTA. To obtain
an LONP, a grantee must submit a
written request accompanied by
adequate information and justification
to the appropriate FTA regional office,
as described in section 4 below.
c. Public Transportation Innovation,
Technical Assistance and Workforce
Development
Unless provided for in an
announcement of project selections, preaward authority does not apply to
section 5312 Public Transportation
Innovation projects or section 5314
Technical Assistance and Workforce
Development. Before an applicant may
incur costs for activities under these
programs, it must first obtain a written
Letter of No Prejudice (LONP) from
FTA. To obtain an LONP, a grantee must
submit a written request accompanied
by adequate information and
justification to the appropriate FTA
headquarters office. Information about
LONP procedures may be obtained from
the appropriate headquarters office.

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3. Conditions
The conditions under which preaward authority may be utilized are
specified below:
i. Pre-award authority is not a legal or
implied commitment that the subject
project will be approved for FTA
assistance or that FTA will obligate
Federal funds. Furthermore, it is not a
legal or implied commitment that all
items undertaken by the applicant will
be eligible for inclusion in the project.
ii. All FTA statutory, procedural, and
contractual requirements must be met.
iii. No action will be taken by the
grantee that prejudices the legal and
administrative findings that the Federal
Transit Administration must make in
order to approve a project.
iv. Local funds expended by the
grantee after the date of the pre-award
authority will be eligible for credit
toward local match or reimbursement if
FTA later makes a grant or grant
amendment for the project. Local funds
expended by the grantee before the date
of the pre-award authority will not be
eligible for credit toward local match or
reimbursement. Furthermore, the
expenditure of local funds or the
undertaking of certain activities that
would compromise FTA’s ability to
comply with Federal environmental
laws (e.g., project implementation
activities such as land acquisition,
demolition, or construction before the
date of pre-award authority) may render
the project ineligible for FTA funding.
v. The Federal amount of any future
FTA assistance awarded 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.
vi. For funds to which the pre-award
authority applies, the authority expires
with the lapsing of the fiscal year funds.
vii. When a grant for the project is
subsequently awarded, the grant and the
Federal Financial Report in TrAMS
must indicate the use of pre-award
authority.
viii. Planning, Environmental, and
Other Federal requirements.
All Federal grant requirements must
be met at the appropriate time for the
project to remain eligible for Federal
funding. The growth of the Federal
transit program has resulted in a
growing number of inexperienced
grantees who find compliance with
Federal planning and environmental
laws increasingly challenging.
FTA has modified its approach to preaward authority, and the date that costs
may be incurred is as follows. For
design and environmental review, costs

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may be incurred as of the date of the
authorization of formula funds or the
date of the announcement of the
discretionary allocation of funds for the
project. For property acquisition,
demolition, construction, and
acquisition of vehicles, equipment, or
construction materials for projects that
require a categorical exclusion pursuant
to 23 CFR 771.118(d), an environmental
assessment, or an environmental impact
statement, costs may be incurred as of
the date that FTA completes the
environmental review process required
by NEPA and its implementing
regulations (i.e., through issuance of a
Section 771.118(d) categorical exclusion
determination, a Finding of No
Significant Impact (FONSI), or a Record
of Decision (ROD)). For pre-award
authority triggered by the completion of
the NEPA process, the completion of
planning and air quality requirements is
a prerequisite, as those activities are
completed prior to conclusion of the
environmental review process.
Formula funds must be authorized or
appropriated and earmarked project
allocations published or announced
before pre-award authority can be
considered.
The requirement that a project be
included in a locally-adopted
Metropolitan Transportation Plan, the
metropolitan transportation
improvement program and federallyapproved statewide transportation
improvement program (23 CFR part 450)
must be satisfied before the grantee may
advance the project beyond planning
and preliminary design with non-federal
funds under pre-award authority. If the
project is located within an EPAdesignated non-attainment or
maintenance area for air quality, the
conformity requirements of the Clean
Air Act, 40 CFR part 93, must also be
met before the project may be advanced
into implementation-related activities
under pre-award authority triggered by
the completion of the NEPA process.
For projects that qualify for a categorical
exclusion pursuant to 23 CFR
771.118(c), if a project is subsequently
found not to qualify for this CE, it will
be ineligible for FTA assistance. For all
other projects, compliance with NEPA
and other environmental laws and
executive orders (e.g., protection of
parklands, wetlands, and historic
properties) must be completed before
State or local funds are spent on
implementation activities, such as site
preparation, construction, and
acquisition, for a project that is expected
to be subsequently funded with FTA
funds.
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must be included in a MPO-approved
Unified Planning Work Program
(UPWP) that has been coordinated with
the State.
ix. Federal procurement procedures,
as well as the whole range of applicable
Federal requirements (e.g., Buy
America, Davis-Bacon Act, and
Disadvantaged Business Enterprise)
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 through the use of preaward authority.
x. All program specific requirements
must be met. For example, projects
under section 5310 must comply with
specific program requirements,
including coordinated planning.
Before incurring costs, grantees are
strongly encouraged to consult with the
appropriate FTA Regional office
regarding the eligibility of the project for
future FTA funds and for questions on
environmental requirements, or any
other Federal requirements that must be
met.
4. Pre-Award Authority for the Fixed
Guideway Capital Investment Grant
Program (New and Small Starts Projects
and Core Capacity Projects)
Projects proposed for section 5309
Capital Investment Grant (CIG) program
funds are required to follow a multistep, multi-year process defined in law.
For New Starts and Core Capacity
projects, this process includes three
phases—project development (PD),
engineering, and construction. For
Small Starts projects, this process
includes two phases—PD and
construction. After receiving a letter
from the project sponsor requesting
entry into the PD phase, FTA must
respond in writing within 45 days
whether the information was sufficient
for entry. If FTA’s correspondence
indicates the information was sufficient
and the New Starts, Small Starts or Core
Capacity project enters PD, FTA extends
pre-award authority to the project
sponsor to incur costs for PD activities.
PD activities include the work necessary
to complete the environmental review
process and as much engineering and
design activities as the project sponsor
believes are necessary to support the
environmental review process. Upon
completion of the environmental review
process with a ROD, FONSI, or CE
determination by FTA for a New Starts,
Small Starts, or Core Capacity
Improvement project, FTA extends pre-

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award authority to project sponsors to
incur costs for as much engineering and
design as needed to develop a
reasonable cost estimate and financial
plan for the project, utility relocation,
and real property acquisition and
associated relocations for any property
acquisitions not already accomplished
as a separate project for hardship or
protective purposes or right-of-way
under 49 U.S.C. 5323(q). For Small
Starts projects, upon completion of the
environmental review process and
confirmation from FTA that the overall
project rating is at least a Medium, FTA
extends pre-award authority for vehicle
purchases. Upon receipt of a letter
notifying a New Starts or Core Capacity
project sponsor of the project’s approval
into the engineering phase, FTA extends
pre-award authority for vehicle
purchases as well as any remaining
engineering and design, demolition, and
procurement of long lead items for
which market conditions play a
significant role in the acquisition price.
The long lead items include, but are not
limited to, procurement of rails, ties,
and other specialized equipment, and
commodities. Please contact the FTA
Regional Office for a determination of
activities not listed here, but which
meet the intent described above. FTA
provides this pre-award authority in
recognition of the long-lead time and
complexity involved with purchasing
vehicles as well as their relationship to
the ‘‘critical path’’ project schedule.
FTA cautions grantees that do not
currently operate the type of vehicle
proposed in the project about exercising
this pre-award authority. FTA
encourages these sponsors to wait until
later in the process when project plans
are more fully developed. FTA reminds
project sponsors that the procurement of
vehicles must comply with all Federal
requirements including, but not limited
to, competitive procurement practices,
the Americans with Disabilities Act, and
Buy America. FTA encourages project
sponsors to discuss the procurement of
vehicles with FTA in regards to Federal
requirements before exercising preaward authority. Because there is not a
formal engineering phase for Small
Starts projects, FTA does not extend
pre-award authority for demolition and
procurement of long lead items. Instead,
this work must await receipt of a
construction grant award or an
expedited grant agreement.
a. Real Property Acquisition
As noticed above, FTA extends preaward authority for the acquisition of
real property and real property rights for
fixed Guideway Capital Investment
Grant projects (New or Small Starts or

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Core Capacity) upon completion of the
environmental review process for that
project. The environmental review
process is completed when FTA signs
an environmental Record of Decision
(ROD) or Finding of No Significant
Impact (FONSI), or makes a Categorical
Exclusion (CE) determination. With the
limitations and caveats described below,
real estate acquisition may commence,
at the project sponsor’s risk. For FTAassisted projects, any acquisition of real
property or real property rights must be
conducted in accordance with the
requirements of the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act (URA) and its
implementing regulations, 49 CFR part
24. This pre-award authority is strictly
limited to costs incurred: (i) To acquire
real property and real property rights in
accordance with the URA regulation,
and (ii) to provide relocation assistance
in accordance with the URA regulation.
This pre-award authority is limited to
the acquisition of real property and real
property rights that are explicitly
identified in the final environmental
impact statement (FEIS), environmental
assessment (EA), or CE document, as
needed for the selected alternative that
is the subject of the FTA-signed ROD or
FONSI, or CE determination. This preaward authority regarding property
acquisition that is granted at the
completion of the environmental review
process does not cover site preparation,
demolition, or any other activity that is
not strictly necessary to comply with
the URA, with one exception. That
exception is when a building that has
been acquired, has been emptied of its
occupants, and awaits demolition poses
a potential fire safety hazard or other
hazard to the community in which it is
located, or is susceptible to
reoccupation by vagrants. Demolition of
the building is also covered by this preaward authority upon FTA’s written
agreement that the adverse condition
exists. Pre-award authority for property
acquisition is also provided when FTA
makes a CE determination for a
protective buy or hardship acquisition
in accordance with 23 CFR
771.117(d)(12). Pre-award authority for
property acquisition is also provided
when FTA completes the environmental
review process for the acquisition of
right-of-way as a separate project in
accordance with 49 U.S.C. 5323(q).
When a tiered environmental review in
accordance with 23 CFR 771.111(g) is
used, pre-award authority is NOT
provided upon completion of the first
tier environmental document except
when the Tier-1 ROD or FONSI signed
by FTA explicitly provides such pre-

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award authority for a particular
identified acquisition. Project sponsors
should use pre-award authority for real
property acquisition relocation
assistance with a clear understanding
that it does not constitute a funding
commitment by FTA. FTA provides preaward authority upon completion of the
environmental review process for real
property acquisition and relocation
assistance to maximize the time
available to project sponsors to move
people out of their homes and places of
business, in accordance with the
requirements of the URA, but also with
maximum sensitivity to the
circumstances of the people so affected.
b. Reimbursement of Costs Incurred
Under Pre-Award Authority
Although FTA provides pre-award
authority for property acquisition, long
lead items, and vehicle purchases upon
completion of the environmental review
process, FTA will not make a grant to
reimburse the sponsor for real estate
activities, vehicle purchases or
purchases of long lead items conducted
under pre-award authority until the
project receives its construction grant.
This is to ensure that Federal funds are
not risked on a project whose
advancement into construction is still
not yet assured.
c. National Environmental Policy Act
(NEPA) Activities
NEPA requires that major projects
proposed for FTA funding assistance be
subjected to a public and interagency
review of the need for the project, its
environmental and community impacts,
and alternatives to avoid and reduce
adverse impacts. Projects of more
limited scope also need a level of
environmental review, either to support
an FTA finding of no significant impact
(FONSI) or to demonstrate that the
action is categorically excluded (i.e., CE)
from the more rigorous level of NEPA
review. FTA’s regulation titled
‘‘Environmental Impact and Related
Procedures,’’ at 23 CFR part 771 states
that the costs incurred by a grant
applicant for the preparation of
environmental documents requested by
FTA are eligible for FTA financial
assistance (23 CFR 771.105(e)).
Accordingly, FTA extends pre-award
authority for costs incurred to comply
with NEPA regulations and to conduct
NEPA-related activities, effective as of
the earlier of the following two dates: (1)
The date of the Federal approval of the
relevant STIP or STIP amendment that
includes the project or any phase of the
project, or that includes a project
grouping under 23 CFR 450.216(j) that
includes the project; or (2) the date that

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FTA approves the project into the
project development phase of the CIG
program. The grant applicant must
notify the FTA Regional Office upon
initiation of the Federal environmental
review process in accordance with the
‘‘Dear Colleague’’ letter from the FTA
Administrator dated February 24, 2011.
NEPA-related activities include, but are
not limited to, public involvement
activities, historic preservation reviews,
section 4(f) evaluations, wetlands
evaluations, endangered species
consultations, and biological
assessments. This pre-award authority is
strictly limited to costs incurred to
conduct the NEPA process and
associated engineering, and to prepare
environmental, historic preservation
and related documents. When a New
Starts, Small Starts, or Core Capacity
project is granted pre-award authority
for the environmental review process,
the reimbursement for NEPA activities
conducted under pre-award authority
may be sought at any time through
section 5307 (Urbanized Area Formula
Program) or the flexible highway
programs (STP and CMAQ).
Reimbursement from the section 5309
CIG program for NEPA activities
conducted under pre-award authority is
provided only for expenses incurred
after entry into the project development
phase and only once a construction
grant agreement is signed. As with any
pre-award authority, FTA
reimbursement for costs incurred is not
guaranteed.
d. Other New and Small Starts and Core
Capacity Project Activities Requiring
Letter of No Prejudice (LONP)
Except as discussed in paragraphs i
through iii above, a CIG project sponsor
must obtain a written LONP from FTA
before incurring costs for any activity
not covered by pre-award authority. To
obtain an LONP, an applicant must
submit a written request accompanied
by adequate information and
justification to the appropriate FTA
Regional Office, as described in B
below.
B. Letter of No Prejudice (LONP) Policy
1. Policy
LONP authority allows an applicant
to incur costs on a project utilizing nonFederal resources, with the
understanding that the costs incurred
subsequent to the issuance of the LONP
may be reimbursable as eligible
expenses or eligible for credit toward
the local match should FTA approve the
project at a later date. LONPs are
applicable to projects and project
activities not covered by automatic pre-

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award authority. The majority of LONPs
will be for section 5309 Capital
Investment Grant program projects (New
or Small Starts or Core Capacity)
undertaking activities not covered under
automatic pre-award authority. LONPs
may be issued for formula and
discretionary funds beyond the life of
the current authorization or FTA’s
extension of automatic pre-award
authority; however, the LONP is limited
to a five-year period, unless otherwise
authorized in the LONP. Receipt of
Federal funding under any program is
not implied or guaranteed by an LONP.
2. Conditions and Federal Requirements
The conditions and requirements for
pre-award authority specified in section
V.4.ii and V.4.iii above apply to all
LONPs. Because project implementation
activities may not be initiated before
completion of the environmental review
process, FTA will not issue an LONP for
such activities until the environmental
review process has been completed with
a ROD, FONSI, or CE determination.
3. Request for LONP
Before incurring costs for project
activities not covered by automatic preaward authority, the project sponsor
must first submit a written request for
an LONP, accompanied by adequate
information and justification, to the
appropriate regional office and obtain
written approval from FTA. FTA
approval of an LONP is determined on
a case-by-case basis.
C. FY 2016 Annual List of Certifications
and Assurances
The FY 2016 Certifications and
Assurances and Master Agreement must
be used for all grants and cooperative
agreements awarded in FY 2016, once
available. All recipients with active
projects will be required to sign the FY
2016 Certifications and Assurances
within 90 days of the FY 2016
Certifications and Assurances being
made available in TrAMS.

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D. Civil Rights Requirements
1. Disadvantaged Business Enterprise
(DBE)
The DOT Disadvantaged Business
Enterprise (DBE) program is an
affirmative action program designed to
combat discrimination and its
continuing effects by providing
contracting opportunities on federallyfunded highway, transit, and airport
projects for small businesses owned and
controlled by socially and economically
disadvantaged individuals. Recipients
are required to report to FTA their
transit vehicle manufacturer awards.
Recipients must do this within thirty

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(30) days of making the award and must
submit: (1) The name of the successful
bidder; and (2) the total dollar value of
the contract. Recipients must report this
information at the time the purchase is
finalized. In other words, report the
award when the recipient knows who
the vehicle manufacturer will be and the
exact amount of the contract award.
Please remember that only certified
transit vehicle manufacturers (TVM) can
bid and receive FTA-funded vehicle
procurements. Recipients may check the
list of certified TVMs by visiting the
FTA TVM Web page at http://
www.fta.dot.gov/12326_5626.html or
checking with a regional civil rights
officer. In addition, for joint and
cooperative procurements, each FTA
recipient must separately report the
information when they or a subrecipient
execute a purchase order for the specific
number of vehicles being purchased.
This required information must be
submitted to FTA on agency letterhead
to the regional civil rights officer. FTA
will work to develop an electronic
process for tracking transit vehicle
purchases in FY 2016.

make reasonable modifications to
policies, practices, and procedures to
avoid discrimination and ensure that
their programs are accessible to
individuals with disabilities. Recipients
must have a process in place for making
decisions and providing reasonable
modifications under the ADA to their
policies and practices, as set forth in 49
CFR 37.169. Recipients are reminded
that this rulemaking also revised the
longstanding local complaint process
requirements in 49 CFR 27.13, adding
additional elements that must be part of
the local process. For example,
recipients must now sufficiently
advertise to the public the process for
filing a disability-related complaint
(such as on their Web sites) and
communicate their response to the
complainant. On November 4, 2015,
FTA issued ADA Circular 4710.1, which
provides guidance to recipients on
carrying out the existing provisions of
the ADA and section 504, including
those involving reasonable modification
and local complaint processing.

2. Title VI of the Civil Rights Act of
1964
The U.S. DOT’s Title VI implementing
regulations are found in 49 CFR part 21.
FTA’s Title VI Circular (4702.1B)
provides guidance on carrying out the
regulatory requirements. For recipients
in urbanized areas of 200,000 or more in
population and with 50 or more fixedroute vehicles in peak service, the
recipient must conduct a service equity
analysis for all service changes that
meet the recipient’s definition of ‘‘major
service change’’ prior to implementing
the service change. Recipients also must
conduct a fare equity analysis for all fare
increases or decreases prior to
implementing a fare change.
Furthermore, an environmental justice
analysis is not a substitute for a Title VI
service equity analysis triggered by a
major service change or fare change. As
recipients prepare their budgets, it is
vitally important that an appropriate
major service change or fare change
analysis is completed prior to taking the
proposed action. Should you have any
questions, please refer to 4702.1B,
utilize the webinars posted on FTA’s
Title VI Web page, and contact your
Regional Civil Rights Officer.

FTA’s nondiscrimination statute
found at 49 U.S.C. 5332 prohibits
discrimination on the basis of sex. Other
Federal statutes such as Title VI and
Title VII of the Civil Rights Act of 1964
have been interpreted to prohibit
discrimination on the basis of gender
identity, including transgender status
and nonconformity with gender
stereotypes. Therefore, FTA interprets
section 5332 to also include genderidentity discrimination.

3. Americans with Disabilities Act
(ADA)
Effective July 13, 2015, DOT revised
it rules under the ADA and section 504
of the Rehabilitation Act of 1973, as
amended, specifically to provide that
transportation entities are required to

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4. Equal Employment Opportunity

E. Consolidated Planning Grants (CPG)
FTA and FHWA planning funds
under both the Metropolitan Planning
and State Planning and Research
Programs can be consolidated into a
single consolidated planning grant,
awarded by either FTA or FHWA. The
CPG eliminates the need to monitor
individual fund sources, if several have
been used, and ensures that the oldest
funds will always be used first. Under
the CPG, States can report metropolitan
planning program expenditures (to
comply with the Single Audit Act) for
both FTA and FHWA under the
Catalogue of Federal Domestic
Assistance number for FTA’s
Metropolitan Planning Program
(20.505). Additionally, for States with
an FHWA Metropolitan Planning (PL)
fund-matching ratio greater than 80
percent, the State can waive the 20
percent local share requirement, with
FTA’s concurrence, to allow FTA funds
used for metropolitan planning in a CPG
to be granted at the higher FHWA rate.

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For some States, this Federal match rate
can exceed 90 percent.
States interested in transferring
planning funds between FTA and
FHWA should contact the FTA Regional
Office or FHWA Division Office for
more detailed procedures. Current
guidelines are included in Federal
Highway Administration Memorandum
dated July 12, 2007, ‘‘Information: Final
Transfers to Other Agencies that
Administer Title 23 Programs.’’
For further information on CPGs,
contact Ann Souvandara, Office of
Budget and Policy, FTA, at (202)366–
0649.
1. Grant Application Procedures
All applications for FTA funds should
be submitted to the appropriate FTA
Regional Office. All applications are
filed electronically. As noted in Section
III of this notice, beginning on February
16, 2016, FTA will use the TrAMS
system as a replacement for TEAM. FTA
regional staff is responsible for working
with grantees to review and process
grant applications. In order for an
application to be considered complete
and for FTA to assign a Federal Award
Identification Number (FAIN), enabling
submission in TrAMS, and submission
to the Department of Labor (when
applicable), the following requirements
must be met:
i. Recipient has registered in the
System for Award Management (SAM)
and its registration is current. If your
agency is not registered or needs to
ensure it is current, visit the SAM Web
site at (https://www.sam.gov).
ii. Recipient’s contact information,
including Dun and Bradstreet Data
Universal Numbering System (DUNS), is
correct and up-to-date. If requested by
phone (1–866–705–5711), DUNS is
provided immediately. If your
organization does not have an DUNS,
you will need to go to the Dun &
Bradstreet Web site at http://
fedgov.dnb.com/webform to obtain the
number.
iii. Recipient has properly submitted
its annual certifications and assurances.
iv. Recipient’s Civil Rights
submissions are current and approved.
v. Documentation is on file to support
recipient’s status as either a designated
recipient (for the program and area) or
a direct recipient.
vi. Funding is available, including
any flexible funds included in the
budget, and split letters or suballocation
letters on file (where applicable) to
support amount being applied for in
grant application.
vii. The project is listed in a currently
approved Transportation Improvement
Program (TIP); Statewide Transportation

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Improvement Program (STIP), or
Unified Planning Work Program
(UPWP).
viii. All eligibility issues are resolved.
ix. Required environmental findings
are made.
x. The application contains a welldefined scope of work including at least
one project with accompanying project
narratives, budget scope and activity
line item information, Federal and nonFederal funding amounts, and
milestones.
xi. Major Capital Projects as defined
by 49 CFR 633 Project Management
oversight must document FTA has
reviewed the project management plan
and provided approval.
xii. Milestone information is
complete, or FTA determines that
milestone information can be finalized
before the grant is ready for award. FTA
will also review status of other open
grants’ reports to confirm financial and
milestone information is current on
other open grants and projects.
Before FTA can award grants for
discretionary projects and activities,
notification must be provided to the
House and Senate authorizing and
appropriations committees. Other
important issues that impact FTA grant
processing activities are discussed
below.
a. System for Award Management
(SAM) Registration and Dun and
Bradstreet Universal Numbering System
(DUNS) Number
Each applicant or recipient of Federal
Funds is required to: (1) Be registered in
SAM before submitting its application;
(2) provide a valid DUNS number in its
application; and (3) continue to
maintain an active SAM registration
with current information at all times
during which it has an active award or
an application or plan under
consideration by the Federal Transit
Administration (FTA). FTA will not
make an award to an applicant until the
applicant has complied with all
applicable DUNS and SAM
requirements and, if an applicant has
not fully complied with the
requirements by the time the FTA is
ready to make a Federal award, FTA
may determine that the applicant is not
qualified to receive a Federal award and
use that determination as a basis for
making a Federal award to another
applicant.
The System for Award Management
(SAM) https://www.sam.gov/portal/
SAM/ is the Official U.S. Government
system that consolidated the capabilities
of many systems, including the CCR,
ORCA, and EPLS. There is no fee to
register or use this site. Entities may

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register and update their information at
no cost directly from the above site.
SAM registration (formerly CCR
registration) needs to be renewed at
least annually.
b. Award Budgets—Scope Codes and
Activity Line Items (ALI) Codes;
Financial Purpose Codes
FTA uses the Scope and Activity Line
Item (ALI) Codes in the award budgets
to track program trends, to report to
Congress, and to respond to requests
from the Inspector General and the
Government Accountability Office
(GAO), as well as to manage grants. The
accuracy of the data is dependent on the
careful and correct use of codes.
c. Designated and Direct Recipients
Documentation
For its formula programs, FTA
primarily apportions funds to the
Designated recipient in the large UZAs
(areas over 200,000), or for areas under
200,000 (small UZAs and rural areas), it
apportions the funds to the Governor, or
its designee (e.g., State DOT).
Depending on the program and as
described in the individual program
sections found in Section IV of this
notice, further suballocation of funds
may be permitted to eligible recipients
who can then apply directly to FTA for
the funding (direct recipients), so long
as the required documentation is on file.
For the programs in which FTA can
make grants to eligible direct recipients,
other than the designated recipient(s),
recipients are reminded that
documentation must be on file to
support the (1) status of the recipient
either as a designated recipient or direct
recipient; and (2) the allocation of funds
to the direct recipient.
Documentation to support existing
designated recipients for the UZA must
also be on file at the time of the first
application in FY 2016. Further, split
letters and/or suballocation letters
(Governor’s Apportionment letters),
must also be on file to support grant
applications from direct recipients. If
this information has been uploaded to a
recipient’s profile in TEAM, it will be
migrated into TrAMS. Once
suballocation letters for FY 2016
funding are finalized they should also
be uploaded into TrAMS.
2. Payments
Once a grant has been awarded and
executed, requests for payment can be
processed. To process payments FTA
uses ECHO-Web, an Internet accessible
system that provides grantees the
capability to submit payment requests
on-line, as well as receive user-IDs and
passwords via email. New applicants

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should contact the appropriate FTA
Regional Office to obtain and submit the
registration package necessary for set-up
under ECHO-Web.

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3. Oversight
FTA is responsible for conducting
oversight activities to help ensure that
grants recipients use FTA Federal
financial assistance in a manner
consistent with their intended purpose
and in compliance with regulatory and
statutory requirements. FTA conducts
periodic oversight reviews to assess
grantee compliance with applicable
Federal requirements. Each Urbanized
Area Formula Program recipient is
reviewed every three years, (also known
as FTA’s Triennial Review); and States
and state-wide public transportation
agencies are reviewed periodically to
assess the management practices and
program implementation of FTA statewide programs (e.g., Planning, Rural
Areas, Enhanced Mobility of Seniors
and Individuals with Disabilities
Programs). Other more detailed reviews
are scheduled based on an annual
grantee oversight assessment. Important
objectives of FTA’s oversight program
include, but are not limited to:
Determining grantee compliance with
Federal requirements; identifying
technical assistance needs, and
delivering technical assistance to meet
those needs; spotting emerging issues
with grantees in a forward-looking
fashion; recognizing when there is a
need for more in-depth reviews in the
areas of procurement, financial
management, and civil rights; and
identifying grantees with recurring or
systemic issues.
4. Technical Assistance
As noted throughout the notice, FTA
continues to rely on several of the
existing program circulars for general
program guidance. FTA is continuing to
update the program circulars, with an
opportunity for notice and comment
(where warranted), to reflect
amendments to chapter 53 of title 49,
U.S.C. made by the FAST Act. In the
meantime, if you have any questions,
please do not hesitate to contact FTA.
FTA headquarters and regional staff will
be pleased to answer your questions and
provide any technical assistance you
may need to apply for FTA program
funds and manage the grants you
receive. At its discretion, FTA may also
use program oversight consultants to
provide technical assistance to grantees
on a case by case basis. This notice and
the program guidance circulars
previously identified in this document
may be accessed via the FTA Web site
at www.fta.dot.gov.

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G. Grant Management
1. Formula Apportionment Data and
Methodology
FTA is publishing apportionment
tables on its Web site for each program
that reflects the full year appropriations
less oversight take-downs, as applicable.
Tables displaying the funds available to
eligible states, tribes, and urbanized
areas have been posted to http://
www.fta.dot.gov/apportionments. This
Web site contains a page listing the
apportionment and allocation tables for
FY 2016 as well as links to prior year
formula apportionment notices and
tables and the NTD and Census data
used to calculate the FY 2016
apportionments.
2. National Transit Database and Census
Data Used in the FY 2016
Apportionments
Consistent with past practices, the
calculations for sections 5307, 5311,
including 5311(j) (Tribal Transit), 5329,
5337, and 5339 programs rely on the
most-recent transit service data reported
to the National Transit Database (NTD),
which in this case is the 2014 report
year. In some cases where an
apportionment is based on the age of the
system, the age is calculated as of
September 30, 2015, which was the last
day before FY 2016 began. Any
recipient or beneficiary of either the
section 5307 or section 5311 program
funds is required to report to the NTD.
Additionally, a number of transit
operators report to the NTD on a
voluntary basis. For the 2014 report
year, the NTD includes data from 864
reporters in urbanized areas, 825 of
which reported operating transit service.
The NTD also includes data from 1,420
providers of rural transit service, which
includes 130 Indian Tribes providing
transit service.
2010 Census data is used to determine
population and population density for
sections 5303, 5305, 5307 and 5339 as
well as rural population and rural land
area for Section 5311. The formulas for
sections 5307, 5311, and 5311(j) include
tiers where funding is allocated on the
basis of the number of persons living in
poverty, and the section 5310 formula
program allocates funding on the basis
of the population of older adults and
people with disabilities. The Census
Bureau no longer publishes decennial
census data on persons living in poverty
and persons with disabilities. As a
result, since FY 13, FTA has been using
the data for these populations available
via the Census’ American Community
Survey (ACS). The NTD and census data
that FTA used to calculate the
apportionments associated with this

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notice can be found on FTA’s Web site:
www.fta.dot.gov/apportionments.
The FY 2016 apportionments use data
on low-income persons, persons with
disabilities, and older adults from the
2009–2013 ACS five-year data set,
which was published in December 2014.
This data represent the most recent fiveyear ACS estimates that are available as
of October 1st for the year being
apportioned. As was the case in prior
years, data on low-income persons
comes from ACS Table B17024, ‘‘Age by
Ratio of Income to Poverty in the Last
Twelve Months,’’ and data on people
with disabilities under 65 years old
comes from ACS Table S1810,
‘‘Disability Characteristics.’’ For the FY
2016 apportionments, FTA is using data
on older adults (over 65 years old) from
ACS Table B01001, ‘‘Sex by Age’’ after
determining that the ACS table used in
prior fiscal years (ACS Table S.0103,
‘‘People over 65 in the United States’’)
did not include data for all urbanized
areas.
3. Grant Reporting
Recipients of FTA funds are reminded
that all FTA grantees are required to
report on their grants and that it is
critical to ensure reports demonstrate
that reasonable progress is being made
on the project. At a minimum, all
awards require a Federal Financial
Report (FFR) and a Milestone Progress
Report (MPR) on an annual basis, with
some reports required quarterly or
monthly depending on the recipient and
the type of projects funded under the
grant. The requirements for these
reports and other reporting
requirements can be found in FTA
Circular 5010.1D, Grant Management
Requirements, dated August 27, 2012.
FTA staff, auditors, and contractors rely
on the information provided in the FFR
and MPR to review and report on the
status of both financial and project-level
activities contained in the grant. It is
critical that recipients provide accurate
and complete information in these
reports and submit them by the required
due date. Failure to report and/or
demonstrate reasonable progress on
projects can result in suspension or
premature close-out of a grant.
4. Inactive Grants and Grant Closeout
In FY 2016, FTA will continue to
focus on inactive grants and grants that
do not comply with reporting
requirements. If appropriate, FTA will
take action to close out and deobligate
funds from these grants if reasonable
progress is not being made. The efficient
use of funds will further FTA’s
fulfillment of its mission to provide
efficient and effective public

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transportation systems for the nation. As
inactive grants continue to be an audit
finding within the DOT, FTA must take
action to ensure its grants do not impact
the DOT from receiving a ‘‘clean audit’’
opinion on its annual financial
statement.
In October of 2015, FTA identified a
list of grants that were awarded on or
prior to September 30, 2012 and have
had no funds disbursed since September
30, 2014 or have never had a
disbursement. FTA Regional Offices
will be contacting grant recipients with
grants that meet this criteria to notify
them that FTA intends to close the grant
and deobligate any remaining funds
unless the grantee can provide
information that demonstrates that the
projects funded by the grant remain

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active and the grantee has a realistic
schedule to expedite completion of the
projects funded in the grant.
5. American Recovery and Reinvestment
Act (ARRA) Transportation Investments
Generating Economic Recovery (TIGER)
Grants
Recipients of open ARRA TIGER
grants should be aware that, as a matter
of law, all remaining ARRA funds
MUST be disbursed from grants by the
end of the 5th FY after funds were
obligated. (See 31 U.S.C. 1552.) For FTA
ARRA TIGER projects, that requirement
takes effect at the end of FY 2016.
Accordingly, once ECHO closes for
disbursements in late September 2016,
all remaining funds within FTA ARRA
TIGER funded grants will no longer be

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available to the grantee. These
undisbursed funds will be deobligated
from the grant. Even if a grantee has
incurred costs or disbursed funds prior
to the close of ECHO, if the grantee has
not actually drawn down the funds by
the time ECHO closes, FTA will be
unable to reimburse the grantee.
Therefore, grantees with open ARRA
TIGER grants must ensure project
activities are completed and all funds
are drawn down before ECHO closes by
late September 2016. This deadline does
not apply to TIGER grants that are not
funded by ARRA.
Therese W. McMillan,
Acting Administrator.
[FR Doc. 2016–02821 Filed 2–12–16; 8:45 am]
BILLING CODE P

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