49 U.S.C. Section 5339 Bus and Bus Facilities Formula Program

CIRCULAR
U.S. Department
of Transportation
FTA C 5100.1

Federal Transit
Administration

May 18, 2015

Subject:

BUS AND BUS FACILITIES FORMULA PROGRAM: GUIDANCE AND
APPLICATION INSTRUCTIONS

1. PURPOSE. This circular is an issuance of guidance on the Bus and Bus Facilities Formula
Program administered by the Federal Transit Administration (FTA) under 49 U.S.C. § 5339. This
circular provides guidance for applying for grants under the Bus and Bus Facilities Program and
addresses the requirements that must be met in the application for Section 5339 program
assistance. This circular incorporates provisions of the Moving Ahead for Progress in the 21st
Century Act (MAP-21; Pub. L. 112-141), signed into law on July 6, 2012, and includes the most
current available guidance on statutory and programmatic requirements for the federal public
transportation program as of the date of publication.
2. CANCELLATION. This is a new circular. It does not cancel any existing directive.
3. AUTHORITY.
a. Federal Transit Laws, Title 49, United States Code, Chapter 53.
b. 49 CFR 1.51.
4. WAIVER. Federal Transportation Authority (FTA) reserves the right to waive any provision of this
circular to the extent permitted by federal law or regulation.
5. FEDERAL REGISTER NOTICE. In conjunction with publication of this circular, a Federal
Register notice was published on 04-16-2015, addressing comments received during the
development of the circular.
6. AMENDMENTS TO THE CIRCULAR. FTA reserves the right to update this circular to reflect
changes in other revised or new guidance and regulations that undergo notice and comment,
without further notice and comment on this circular. FTA will post updates on our website:
www.fta.dot.gov. The website allows the public to register for notification when FTA issues
Federal Register notices or new guidance. Please visit the website and click on “sign up for e-mail
updates” for additional information.
7. ACCESSIBLE FORMATS. This document is available in accessible formats upon request. To
obtain paper copies of this circular as well as information regarding these accessible formats, call
FTA’s Administrative Services Help Desk, at 202-366-4865. Individuals with hearing impairments
may contact the Federal Relay Service at 1-800-877-8339 for assistance with the call.
________________________
Therese W. McMillian
Acting Administrator

Page 2

FTA C-5100
05/18/2015

This page intentionally left blank

p

FTA C-5100
05/18/2015

Page i

FTA CIRCULAR 5100.1
BUS AND BUS FACILITIES FORMULA PROGRAM: GUIDANCE AND APPLICATION
INSTRUCTIONS
TABLE OF CONTENTS
CHAPTER
I.

INTRODUCTION AND BACKGROUND
1.
2.
3.
4.
5.

II.

The Federal Transit Administration (FTA) .................................................................. I–1
Authorizing Legislation ................................................................................................. I–1
How to Contact FTA .................................................................................................... I–1
Definitions .................................................................................................................... I–2
Program History ............................................................................................................ I–7

PROGRAM OVERVIEW
1.
2.
3.
4.
5.
6.
7.

III.

PAGE

Statutory Authority ...................................................................................................... II–1
Program Goals ............................................................................................................. II–1
FTA Role in Program Administration ......................................................................... II–1
Designated Recipient and State Role in Program Administration ............................... II–2
Designated Recipients, States, and Subrecipient Eligibility ........................................ II–3
FTA Oversight ............................................................................................................. II–3
Relationship to Other Programs ................................................................................... II–4

GENERAL PROGRAM INFORMATION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Apportionment of Program Funds ............................................................................. III–1
Apportionment Data .................................................................................................. III–1
Availability of Funds ................................................................................................. III–2
Transfer of Apportionments........................................................................................ III–2
Eligible Capital Projects ............................................................................................. III–2
Joint Development Improvements .............................................................................. III–6
Interest and Debt Financing as an Eligible Project Cost ............................................ III–6
Federal Share of Project Costs ................................................................................... III–8
Local Share of Project Costs ...................................................................................... III–8
Additional Local Share Information .......................................................................... III–9
Alternative Financing ............................................................................................... III–12
Deferred Local Share ............................................................................................... III–13

IV. PLANNING AND PROGRAM DEVELOPMENT
1. Metropolitan and Statewide Planning Requirements ................................................. IV–1
2. Transportation Management Areas ............................................................................ IV–1
3. Performance-based Planning ..................................................................................... IV–2

CHAPTER

PAGE

4. Role of Designated Recipient and Metropolitan Planning Organization
in Allocating Program Funds ..................................................................................... IV–3
5. Multiple Designated Recipients in Large UZAs ........................................................ IV–3
6. Program of Projects and Public Participation Requirements ...................................... IV–4
7. Transfer of FTA Funds for Highway Projects ............................................................ IV–7
8. Requirements Related to Vehicles and Equipment .................................................... IV–7
9. Requirements Related to Facilities ........................................................................ . IV–13
10. Environmental Considerations ................................................................................. IV–15
11. Authority to Undertake Projects in Advance ........................................................... IV–16
V.

PROGRAM MANAGEMENT AND ADMINISTRATIVE REQUIREMENTS
1.
2.
3.
4.
5.
6.
7.
8.

Certifications Required by 49 U.S.C. 5339 .................................................................V–1
Certification Procedures ...............................................................................................V–8
FTA Electronic Award Management System ..............................................................V–9
System for Award Management Requirements ...........................................................V–9
Data Universal Numbering System (DUNS) Registration Requirements ...................V–9
DUNS Requirements for Subrecipients .....................................................................V–10
Electronic Clearing House Operation (ECHO) Requirements ..................................V–10
Federal Funding Accountability and Transparency Act
(FFATA) Requirements ..............................................................................................V–10
9. National Transit Database (NTD) Reporting .............................................................V–11
VI.

STATE AND PROGRAM MANAGEMENT PLANS
1.
2.
3.
4.
5.
6.

General ....................................................................................................................... VI–1
Purpose ...................................................................................................................... VI–1
Management Plan Reviews ....................................................................................... VI–2
Management Plan Content ........................................................................................ VI–2
Management Plan Revisions ..................................................................................... VI–3
Existing SMP/PMP ................................................................................................... VI–4

VII. OTHER PROVISIONS
1. Introduction ............................................................................................................... VII–1
2. Charter Bus Services ................................................................................................. VII–1
3. Civil Rights ............................................................................................................... VII–2
4. Clean Air Act (CAA) ................................................................................................ VII–5
5. Commercial Driver’s License (CDL) ....................................................................... VII–6
6. Debarment and Suspension ....................................................................................... VII–6
7. Drug and Alcohol Testing ......................................................................................... VII–7
8. Drug-free Workplace ................................................................................................ VII–8
9. Employee Political Activity ...................................................................................... VII–8
10. Energy Conservation ................................................................................................. VII–9
11. Environmental Reviews ............................................................................................ VII–9

CHAPTER
p

PAGE

12. Environmental Justice ............................................................................................... VII–9
13. Intergovernmental Review ...................................................................................... VII–10
14. Labor Protections .................................................................................................... VII–10
15. Presidential Coin Act .............................................................................................. VII–11
16. Private Sector Participation ..................................................................................... VII–11
17. Real Property Acquisition and Relocation Assistance ........................................... VII–11
18. Restrictions on Lobbying ........................................................................................ VII–12
19. Safety ...................................................................................................................... VII–12
20. School Bus Transportation ...................................................................................... VII–12
21. Seismic Design and Construction Standards .......................................................... VII–13
22. Sensitive Security Information ............................................................................... VII–13
23. State Safety Oversight ............................................................................................ VII–13
TABLES, GRAPHS, AND ILLUSTRATIONS
1. Application Checklist . ................................................................................................A–6
2. ECHO Information Form .............................................................................................A–8
3. EXHIBIT B–1 Project Scope—Sample No. 1 ............................................................. B–5
4. EXHIBIT B–2 Project Scope—Sample No. 2 ............................................................. B–6
5. EXHIBIT B–3 Presenting Subrecipient Information—Format Option No. 1 ............. B–7
6. EXHIBIT B–4 Presenting Subrecipient Information—Format Option No. 2 ............. B–7
7. Sample Authorizing Resolution ................................................................................... C–2
8. Sample Opinion of Counsel ......................................................................................... C–5
9. Fleet Status ................................................................................................................... C–6
10. Proceeds from the Sale of Assets No Longer Needed for Transit Purposes ................ C–7
11. Like-kind Exchange Example for Transit Bus ............................................................ C–7
12. Sample Supplemental Agreement ................................................................................ C–9
13. FTA Regional and Metropolitan Contact Information ................................................D–1
APPENDICES
APPENDIX A: INSTRUCTIONS FOR PREPARING A GRANT
APPLICATION TO FTA
1. Preapplication Stage ....................................................................................................A–1
2. Application Submission (FTA Electronic Award Management
System Information) ....................................................................................................A–2
3. Application Checklist ..................................................................................................A–6
4. ECHO Information ......................................................................................................A–8
APPENDIX B: INSTRUCTIONS FOR PREPARING A PROJECT BUDGET
1.
2.
3.
4.
5.

Introduction .................................................................................................................. B–1
Developing the Budget ................................................................................................ B–1
Grant Modifications ..................................................................................................... B–1
Format for Capital Assistance ...................................................................................... B–5
Regional Assistance ..................................................................................................... B–8

APPENDIX C: FORMS AND REPRESENTATIVE DOCUMENTS ....................................... C–1

APPENDIX D: FTA REGIONAL AND METROPOLITAN
CONTACT INFORMATION ............................................................................ D–1
APPENDIX E: REFERENCES .................................................................................................. E–1
INDEX .............. .......................................................................................................................... IX–1

FTA C-5100
05/18/2015

This page intentionally left blank

FTA C-5100
05/18/2015

I–1
CHAPTER I
INTRODUCTION AND BACKGROUND

1. THE FEDERAL TRANSIT ADMINISTRATION (FTA). FTA is one of ten modal
administrations within the U.S. Department of Transportation (DOT). FTA is headed by an
administrator who is appointed by the president of the United States, and FTA functions
through a Washington, DC, headquarters office, ten regional offices, and five metropolitan
offices. These offices assist transit agencies in all fifty states, the District of Columbia, Puerto
Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, as well
as federally recognized Indian Tribes.
Public transportation means regular, continuing, shared-ride surface transportation services
that are open to the general public or open to a segment of the general public defined by age,
disability, or low income. Public transportation generally includes, but is not limited to,
transportation services provided by buses, heavy rail, light rail, commuter rail, fixed
guideway, bus rapid transit, passenger ferry boats, trolleys, inclined railways, people
movers, vans, streetcars, jitneys, and aerial tramways. Public transportation can be either
fixed-route or demand-response service, but excludes intercity passenger rail provided by
Amtrak, intercity bus service, charter bus service, school bus service, sightseeing services,
courtesy shuttle services provided by individual businesses and intraterminal or intrafacility
shuttle services. The federal government, through FTA, provides financial assistance to
develop new transit systems and improve, maintain, and operate existing systems. FTA
oversees thousands of grants to hundreds of state and local transit providers, primarily
through its ten regional offices. These recipients are responsible for managing their
programs in accordance with federal requirements, and FTA is responsible for ensuring that
recipients follow federal statutory and administrative requirements.
2. AUTHORIZING LEGISLATION. Most federal transit laws are codified at title 49 U.S.C.
Chapter 53. Authorizing legislation is substantive legislation enacted by Congress that
establishes or continues the legal operation of a federal program or agency. FTA’s most recent
authorizing legislation is the Moving Ahead for Progress in the 21st Century Act (MAP-21),
Public Law 112-141, signed into law on July 6, 2012, and effective on October 1, 2012. This
circular reflects changes to federal transit law due to MAP-21 as well as changes required by
other laws that have become effective since the former Bus and Bus Facilities program was
included in a circular that was published in August 2012.
3. HOW TO CONTACT FTA. FTA’s regional and metropolitan offices are responsible for the
provision of financial and technical assistance to FTA recipients and oversight of grant
implementation for most FTA programs. Certain specific programs are the responsibility of
FTA headquarters. Inquiries should be directed to either the regional or metropolitan office
responsible for the geographic area in which you are located. See Appendix D of this circular
for specific regional and metropolitan office contact information.
For further information, visit the FTA website, http://www.fta.dot.gov, or contact FTA
headquarters at the following address and phone number:

I–2

FTA C-5100
05/18/2015
Federal Transit Administration
Office of Communications and Congressional Affairs
1200 New Jersey Avenue SE.
East Building, Fifth Floor
Washington, DC 20590
Phone: 202-366-4043
Fax: 202-366-3472

4. DEFINITIONS. All definitions in 49 U.S.C. 5302 and 49 U.S.C. 5339 apply to this circular as
well as the following definitions:
a. Applicant: In this circular, the term “applicant” is used to identify an entity that is seeking,
but has not yet been awarded, specific federal financial assistance directly from FTA. The
term “applicant” is used interchangeably with “grant applicant.”
b. Associated Capital Maintenance: A category of capital project activities that is defined as
equipment, tires, tubes, and material, each costing at least 0.5 percent of the current fair
market value of rolling stock comparable to the rolling stock for which the equipment, tires,
tubes, and material are to be used; and the reconstruction of equipment and material, each
of which after reconstruction will have a fair market value of at least 0.5 percent of the
current fair market value of rolling stock comparable to the rolling stock for which the
equipment and material will be used.
c. Bus Rapid Transit System (BRT): A bus system that meets all of the following criteria:
(1) Over 50 percent of the route must operate in a separated right-of-way dedicated for
transit use during peak periods. Other traffic can make turning movements through the
separated right-of-way.
(2) The route must have defined stations that are accessible for persons with disabilities,
offer shelter from the weather, and provide information on schedules and routes.
(3) The route must provide faster passenger travel times through congested intersections by
using active signal priority in separated guideway, and either queue-jump lanes or
active signal priority in nonseparated guideway.
(4) The route must provide short headway, bidirectional service for at least a fourteen-hour
span of service on weekdays and a ten-hour span of service on weekends. Short
headway service on weekdays consists of either (a) fifteen-minute maximum headways
throughout the day, or (b) ten-minute maximum headways during peak periods and
twenty-minute maximum headways at all other times. Short headway service on
weekends consists of thirty-minute maximum headways for at least ten hours a day.
The provider must apply a separate and consistent brand identity to stations and vehicles.
d. Capital Asset: The term “capital asset” includes equipment, rolling stock, infrastructure,
and facilities for use in public transportation and owned or leased by a recipient or

FTA C-5100
05/18/2015

I–3

subrecipient of federal financial assistance.
e. Capital Lease: Any transaction whereby the recipient acquires the right to use a capital
asset without obtaining ownership.
f. Capital Project: A category of reimbursable project expenses that includes all activities
identified in 49 U.S.C. 5302(3). Eligible activities under this project category are explained
in Chapter III of this circular.
g. Clean Fuel Bus: A passenger bus used to provide public transportation that is powered by
compressed natural gas (CNG), liquefied natural gas, batteries, alcohol-based fuels, hybrid
electric, fuel cell, clean diesel, or other low or zero emissions technology that the
administrator of the Environmental Protection Agency (EPA) has certified sufficiently
reduces harmful emissions.
h. Designated Recipient: The term “designated recipient” as defined at 49 U.S.C. 5302(4)
means: (i) an entity designated, in accordance with the planning process under sections
5303 and 5304, by the governor of a state, responsible local officials, and publicly owned
operators of public transportation, to receive and apportion amounts under section 5336 to
urbanized areas of 200,000 or more in population; or (ii) a state or regional authority, if the
authority is responsible under the laws of a state for a capital project and for financing and
directly providing public transportation.
i. Direct Recipient: For purposes of this circular and this program, based on the statute, a
direct recipient is a designated recipient that operates fixed route bus service or that
allocates funding to fixed route bus operators. “Direct Recipient” is used interchangeably
with “eligible recipient,” “recipient,” and “grantee” in this circular.
j. Electronic Clearing House Operation (ECHO) System: ECHO is an FTA Web-based
application system that processes payment requests from FTA grantees.
k. Electronic Award Management System: A system that grantees and FTA use to manage
grant applications, including the review, approval, and management of all grants. This
system is used by grantees to submit financial status reports and milestone progress reports
and to submit grant modification requests. This term includes FTA’s Transportation
Electronic Award and Management (TEAM) system and its successor.
l. Equipment: An article of nonexpendable, tangible personal property having a useful life of
more than one year and an acquisition cost that equals or exceeds the lesser of the
capitalization level established by the governmental unit for financial statement purposes,
or $5,000. Equipment includes rolling stock and all other such property used in the
provision of public transit service.
m. Fixed Guideway: The term “fixed guideway” means a public transportation facility (i)
using and occupying a separate right-of-way for the exclusive use of public transportation;
(ii) using rail; (iii) using a fixed catenary system; (iv) for a passenger ferry system; or (v)
for a bus rapid transit system.

I–4

FTA C-5100
05/18/2015
n. Fixed-Route System: Public transportation service provided in vehicles operated along
predetermined routes according to a fixed schedule.
o. Fleet Status Report: A report in FTA’s Electronic Grants Management System that
identifies rolling stock to be replaced, retired, or disposed. Appendix D of this circular
contains a sample Fleet Status Report.
p. Fleet Management Plan: The management plan includes an inventory of all buses and other
items, such as operating policies, peak vehicle requirements, maintenance and overhaul
programs, system and service expansions, rolling stock procurements and related schedules,
and spare ratio justification. The plan also calculates the number of rolling stock needed to
operate at peak normal days.
q. Force Account: The use of a grantee’s own labor force to accomplish a capital project.
r. Governor: The term “governor” means the governor of a state, the mayor of the District of
Columbia, and the chief executive officer of a territory of the United States; and includes
the designee of the governor.
s. Grant: An award of financial assistance in the form of money, or property in lieu of money,
by the federal government to an eligible recipient. This term is used interchangeably with
“Grant Agreement.”
t. Intelligent Transportation Systems (ITS): ITS refers to the use of electronics,
communications, or information processing as a single component or in combination to
improve efficiency or safety of a transit or highway system.
u. Large Urbanized Area: Any urbanized area (UZA) with a population of at least 200,000 at
the time of the most recent decennial census.
v. Local Governmental Authority: The term “local governmental authority” includes a
political subdivision of a state or an authority of at least one state or political subdivision of
a state; an Indian tribe; or a public corporation, board, or commission established under the
laws of a state.
w. Master Agreement: The official FTA document containing FTA requirements and other
cross-cutting federal requirements applicable to FTA recipients and their project(s). The
Master Agreement is incorporated by reference and made part of each FTA grant and
amendment thereto.
x. Metropolitan Planning Area (MPA): The geographic area determined by agreement
between the Metropolitan Planning Organization (MPO) for the metropolitan area and the
governor, for which the metropolitan transportation planning process is carried out.
y. Metropolitan Planning Organization (MPO): The policy board of an organization
designated in cooperation with the state and public transportation operators to carry out the
metropolitan planning process, including development of long-range transportation plans

FTA C-5100
05/18/2015

I–5

and transportation improvement programs for metropolitan planning areas of a state.
z. National Transit Database (NTD): The NTD was established by Congress to be the nation’s
primary source for information and statistics on the transit systems of the United States.
Over 800 transit providers in urbanized areas and over 1,300 transit providers in rural areas
currently report to the NTD through the Internet-based reporting system, either directly or
through their state’s Department of Transportation. Recipients or beneficiaries of
Urbanized Area Formula Program (Section 5307) grants and of Rural Area Formula
Program (Section 5311) grants are already required to report to the NTD. Other NTD
reporting requirements may be established by FTA as it implements the National Transit
Asset Management System described in 49 U.S.C. 5326. Data from the National Transit
Database is used by FTA for the apportionment of Urbanized Area Formula Program
grants, Rural Area Formula Program grants, Tribal Transit Formula Grants (Section
5311(j)), State of Good Repair Grants (Section 5337), and Bus and Bus Facilities Grants
(Section 5339). Data from the NTD is also used to inform Congress, states, and local
governments on the condition and performance of public transportation in the United
States. More information about the applicability to this program can be found in Chapter III
and Chapter V.
aa. Net Project Cost: The part of a project that reasonably cannot be financed from revenues.
49 U.S.C. 5302(12). Revenues, in this instance, means farebox revenues.
bb. New Bus Model: The term “new bus model” means a bus model (including a model using
alternative fuel) that has not been used in public transportation in the United States before
the date of production of the model; or has been previously used in public transportation in
the United States, but is now being produced with a major change in configuration or
components.
cc. Nonprofit Organization: A corporation or association determined by the secretary of the
Treasury to be an organization qualifying under 26 U.S.C. 501(c) as exempt from taxation
under 26 U.S.C. 501(a), or which has been determined under state law to be nonprofit and
for which the designated state agency has received documentation certifying the status of
the nonprofit organization.
dd. Operating Expenses: Operating expenses are those costs necessary to operate, maintain, and
manage a public transportation system. Operating expenses usually include such costs as
salaries, benefits, fuel, and items having a useful life of less than one year.
ee. Overhaul: Overhaul is an expense performed as a planned or concentrated preventive
maintenance activity and intended to enable the rolling stock to perform to the end of the
useful life. For rolling stock to be overhauled, it must have accumulated at least 40 percent
of its useful life.
ff. Program of Projects (POP): A POP is a list of projects proposed by a designated recipient in
cooperation with an MPO to be funded from the UZA’s or state’s Section 5339
apportionment. A POP may also be required under other FTA programs. The POP includes
a brief description of the projects, including any suballocation among public transportation

I–6

FTA C-5100
05/18/2015
providers or other eligible subrecipients, total project costs, and federal share for each
project.
gg. Public Transportation: The term “public transportation” means regular, continuing, sharedride surface transportation services that are open to the general public or open to a segment
of the general public defined by age, disability, or low income; and does not include:
intercity passenger rail transportation provided by the entity described in Chapter 243 (i.e.,
Amtrak—or a successor to such entity); intercity bus service; charter bus service; school
bus service; sightseeing service; courtesy shuttle service for patrons of one or more specific
establishments; or intraterminal or intrafacility shuttle services.
hh. Rebuild: Rebuild is a capital expense associated with rolling stock that occurs at or near the
end of a unit of rolling stock’s useful life, and which results in an extended useful life for
the unit of rolling stock consistent with the extent of the rebuilding.
ii. Rehabilitate: To rebuild revenue vehicles to original specifications of the manufacture.
Rehabilitating may include some new components but has less emphasis on structural
restoration than would be the case in a remanufacturing operation, focusing on mechanical
systems and vehicle interiors. For purposes of this circular and program eligibility,
rehabilitating vehicles includes both rebuilding and overhaul activities. See the definitions
of “Rebuild” and “Overhaul” above.
jj. Recipient: For purposes of this circular, the term “recipient” means an entity that receives a
grant of Section 5339 program funds directly from FTA. The word “recipient” is used
interchangeably with “eligible recipient,” “direct recipient,” and “grantee.” Eligible
recipients under Section 5339 are designated recipients that operate fixed route bus service
or that allocate funding to fixed route bus operators.
kk. Rural Area: The term “rural area” means an area encompassing a population of less than
50,000 people that has not been designated in the most recent decennial census as an
urbanized area by the secretary of Commerce.
ll. Shared Use: Those instances in which a project partner, separate from the transit agency or
grantee, occupies part of a larger facility and pays for its pro rata share of the construction,
maintenance, and operation costs. Shared uses are declared at the time of grant award.
mm. Small Urbanized Areas: As used in the context of FTA formula grant programs, small
urbanized areas are UZAs with a population of at least 50,000 but less than 200,000.

nn. Spare Parts: See “Associated Capital Maintenance.”
oo. State: The term “state” means a state of the United States of America.
pp. Statewide Transportation Improvement Program (STIP): A statewide prioritized
listing/program of federally funded transportation projects covering a period of four years
that is consistent with the Long-Range Statewide Transportation Plan, Metropolitan
Transportation Plans (MTPs), and Transportation Improvement Program (TIP), and which

FTA C-5100
05/18/2015

I–7

is required for projects to be eligible for funding under Title 23 of the U.S. Code and 49
U.S.C. Chapter 53.
qq. Subrecipient: An entity that receives FTA funds via a pass-through agreement with a direct
recipient or other grantee, whereby the original recipient remains responsible for
compliance with all terms, conditions, and requirements associated with the grant. For the
purposes of this circular, a designated recipient is the only eligible direct recipient that can
receive a grant under Section 5339, and that designated recipient has the ability to allocate
amounts of the grant to subrecipients that are public agencies or private nonprofit
organizations engaged in public transportation.
rr. Territory: The term “territory” means the District of Columbia, Puerto Rico, the Northern
Mariana Islands, Guam, American Samoa, and the United States Virgin Islands.
ss. Transit: The term “transit” means public transportation.
tt.

Transportation Improvement Program (TIP): A prioritized listing/program of transportation
projects covering a period of four years that is developed and formally adopted by an MPO
as part of the metropolitan transportation planning process, consistent with the MTP, and
which is required for projects to be eligible for funding under Title 23 of the U.S. Code and
49 U.S.C. Chapter 53.

uu. Uniform System of Accounts (USOA): The USOA is a structure of categories and
definitions used for NTD reporting to ensure uniform data. The USOA contains various
categories of accounts and records for classifying financial (Chart of Accounts) and
operating data.
vv. Urbanized Area (UZA): A UZA means an area encompassing a population of not less than
50,000 people that has been defined and designated in the most recent decennial census as
an “urbanized area” by the secretary of Commerce. A small UZA has a population of
50,000 to 199,999 and a large UZA has a population of 200,000 or more.
ww. Useful Life: The expected lifetime of project property, or the acceptable period of use in
service. Useful life of revenue rolling stock begins on the date the vehicle is placed in
revenue service and continues until it is removed from service.
5. PROGRAM HISTORY. FTA’s Bus and Bus Facilities Program originated as part of the
Section 3 discretionary grant program established by the original transit authorization in 1964.
In 1974, with the establishment of the Section 5 formula grant program, discretionary Bus
Program funds could only be used for extraordinary costs that could not be funded with Section
5 funds. The Surface Transportation and Uniform Relocation Assistance Act of 1987
(STURAA) provided that 10 percent of the total available for Section 3 would be allocated for
buses. With 10 percent available for any Section 3 purpose, the budget process always
allocated 20 percent to the discretionary Bus Program. The Intermodal Surface Transportation
Efficiency Act of 1991 (ISTEA) officially changed the allocation so that 20 percent of
available Section 3 funds would be allocated for bus purposes. The Section 3 program was
codified as 49 U.S.C. Section 5309 in 1994 and remained discretionary. The allocation

I–8

FTA C-5100
05/18/2015
percentages changed slightly with the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users Act of 2005 (SAFETEA–LU). Otherwise, the program has
remained essentially the same since 1987.
MAP-21 established a new Section 5339 Bus and Bus Facilities Formula Program (Bus
Program), changing the program from discretionary to formula. Funding is allocated to states
and territories and designated recipients in urbanized areas. The purpose of the new Bus
Program is to assist eligible recipients in replacing, rehabilitating, and purchasing buses and
related equipment; and to construct bus-related facilities, thus allowing grantees to address
replacement and capital expansion needs.

FTA C-5100
05/18/2015

I–9

This page intentionally left blank

FTA C-5100
05/18/2015

II–1
CHAPTER II
PROGRAM OVERVIEW

1. STATUTORY AUTHORITY. The Bus and Bus Facilities Program is authorized under the
provisions set forth in the Moving Ahead for Progress in the 21st Century Act (MAP-21),
signed into law on July 6, 2012 , as codified at 49 U.S.C. 5339 (“Section 5339”). The secretary
may make grants under this section to assist eligible recipients in financing capital projects to
replace, rehabilitate, and purchase buses and related equipment, and to construct bus-related
facilities.
The Catalog of Federal Domestic Assistance (CFDA) number used in the Bus and Bus
Facilities Grants Program is 20.526.
2. PROGRAM GOALS. Pursuant to 49 U.S.C. 5339, Federal Transit Administration (FTA)
awards grants under this section to the designated recipients in the large urbanized areas
(UZAs) and states for the purpose of financing capital bus and bus-related projects that will
support the continuation and expansion of public transportation services in the United States.
3. FTA ROLE IN PROGRAM ADMINISTRATION.
a. FTA’s headquarters office in Washington, DC, serves a broad, program level role in the
administration of the program. FTA headquarters:
(1) provides overall policy and program guidance for the Bus Program;
(2) apportions funds annually to states and designated recipients;
(3) develops and implements financial management procedures;
(4) initiates and manages program support activities; and
(5) conducts national program reviews and evaluations.
b. FTA’s regional offices are responsible for the day-to-day administration of the program.
Regional offices:
(1) review and approve grant applications for designated recipients;
(2) obligate funds for approved grant applications;
(3) work with recipients to implement the annual program;
(4) provide technical assistance;
(5) receive recipient certifications and amendments to the program of projects;
(6) monitor and close grants; and

II–2

FTA C-5100
05/18/2015
(7) conduct triennial reviews and management reviews every three years or as
circumstances warrant, and other reviews as necessary.

4. DESIGNATED RECIPIENT AND STATE ROLE IN PROGRAM ADMINISTRATION. FTA
apportions Bus Program funds for urbanized areas to the state and designated recipients, which
are responsible for receiving and apportioning FTA funds to eligible projects, and applying for
funds on behalf of all eligible subrecipients within the applicable urbanized area or rural areas.
FTA will apportion the funds to existing Section 5307 or new 5339 designated recipients for
large urbanized areas and to the states for all areas under 200,000.
The state or designated recipient has the principle authority and responsibility for administering
Bus Program funds. There are no other eligible direct recipients for the Bus Program under
MAP-21. Refer to the current version of Circular 9030.1 for information about the recipient
designation process. The state or designated recipient’s responsibilities include:
a. The designated recipient allocates the relevant apportionment among subrecipients in the
large urbanized area based on local needs and arrangements, and in coordination with the
MPO(s). In UZAs with more than one designated recipient or other recipients, FTA expects
local officials, operating through the MPO, and designated recipients to determine the
allocation of Section 5339 funds together. The designated recipient(s) and the MPO(s)
should determine the subarea allocation fairly and rationally through a process based on
local needs and agreeable to the designated recipients. A suballocation that is based on
predetermined fixed percentages, for example, may not adequately represent the needs of
transit systems in the UZA.
b. Designated recipients must provide documentation to FTA showing how the 5339
allocation will be split among the recipients. FTA may request a written agreement signed
by a representative of each designated recipient or entity involved.
c. To assist in making such subarea allocations, any UZA may request the appropriate FTA
regional office to coordinate with FTA headquarters staff in providing the necessary
disaggregate data used in apportioning the total UZA’s share of the entire Urbanized Area
Formula Program resource.
d. The state allocates the relevant apportionment among subrecipients in the small urbanized
areas or rural areas based on local needs and arrangements;
e. Identifying and selecting the projects that the MPO or state Department of Transportation
(state DOT) will include in a metropolitan transportation plan, Transportation Improvement
Program (TIP), Long-range Statewide Transportation Plan, and Statewide Transportation
Improvement Program (STIP).
f. Submitting a grant application to FTA for the Section 5339 Program of Projects (POP).
g. Reporting on behalf of subrecipients contained in the POP.

FTA C-5100
05/18/2015

II–3

h. Ensuring that subrecipients and projects are in compliance with all applicable federal
requirements.
5.

DESIGNATED RECIPIENTS, STATES, AND SUBRECIPIENT ELIGIBILITY.
a. Eligible Recipients. Eligible recipients under this section are designated recipients and
states that allocate funds to fixed route bus operators or state or local government agencies
that operate fixed route bus service. A designated recipient that receives a grant under this
section may allocate amounts of the grant to subrecipients that are 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. Please note: Eligible projects as authorized in Section 5339(a)(1) and (2) are not
limited to projects that support fixed route only. For the complete list of eligible capital
projects, please see Chapter III of this circular.
b. Pass-through Arrangements.
(1) A Section 5339 designated recipient or state may choose to pass its grant funds through
to another entity (subrecipient) to carry out the purposes of the recipient’s agreement
with FTA. Eligible subrecipients 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.
(2) To establish a pass-through agreement, the recipient must enter into a written agreement
with the subrecipient that assures FTA that the subrecipient will comply with its
obligation to satisfy the requirements of the grant agreement.
(3) A recipient choosing to pass-through funds must inform the FTA regional office of the
arrangement in its grant application or through other documentation.
(4) The recipient must also inform FTA of any changes in that arrangement during the life
of the project.
(5) Unlike supplemental agreements between the designated recipient (actual recipient) and
FTA, a pass-through arrangement to a subrecipient does not relieve the recipient of its
responsibilities to carry out the terms and conditions of the grant agreement.

6. FTA OVERSIGHT. Congress has charged FTA with conducting reviews of recipients or
requiring that recipients have independent audits conducted on their programs to determine
whether the recipients have met the program’s requirements and certifications.
Recipients may be subject to a triennial, state management, or other regularly scheduled
comprehensive review to evaluate their performance. FTA must ensure that the recipient is
carrying out its program in compliance with federal statutory and administrative requirements.
These comprehensive reviews of recipient performance allow FTA to determine if the recipient
is complying with the certifications it has made.

II–4

FTA C-5100
05/18/2015

FTA may also conduct/determine technical capability and capacity, procurement, financial,
management, civil rights, drug and alcohol, safety, security, and other compliance reviews and
audits, in addition to the triennial review. When FTA evaluations or independent audits identify
compliance deficiencies, FTA provides technical assistance to the recipient to facilitate
compliance with federal requirements. FTA may reduce or withdraw financial assistance as a
result of review findings or withhold further grants until the grantee comes into compliance.
The Single Audit Act, as amended (31 U.S.C. 7501 et seq.), implemented by OMB Circular A–
133, also requires recipients of federal awards resulting in expenditures of $750,000 or more to
have independent audits conducted annually.
7. RELATIONSHIP TO OTHER PROGRAMS. Other public transportation–related federal
programs may provide support for Section 5339 projects, and Section 5339 projects may in
turn enhance the effectiveness of these other programs. The following is a brief discussion of
existing programs, including programs that were repealed but for which funding remains
available, and those programs newly authorized under MAP-21.
a. Repealed Programs: MAP-21 repealed a number of public transportation programs that had
existed under the previous authorization. Funds that were authorized under these programs
remain available for obligation in a grant under the preexisting terms and requirements until
the applicable statutory period of availability expires, or until the funds are fully expended,
rescinded by Congress, or otherwise reallocated. The relationship of applicable repealed
programs to the Bus Program is described below.
(1) Clean Fuels Grant Program (formerly 49 U.S.C. 5308)
The Clean Fuels Grant Program was a former discretionary grant program that assisted
in financing the acquisition of clean fuel rolling stock and clean fuel–related facilities
for agencies providing public transportation and operating in an urbanized area
designated as a nonattainment area for ozone or carbon monoxide under Section 107(d)
of the Clean Air Act, (42 U.S.C. 7407(d)), or a maintenance area for ozone or carbon
monoxide.
The program was established under the Transportation Equity Act for the 21st Century
(TEA-21) and was repealed under MAP-21. Funds allocated under this program in
fiscal year 2012 and prior years will remain available for obligation until they lapse or
are expended. Funds apportioned for this program are subject to the program rules and
requirements at the time they were apportioned.
Eligible recipients were designated recipients as defined in 49 U.S.C. 5307(a)(2), in
UZAs over 200,000 in population, and states for UZAs with populations of less than
200,000, for areas that are designated as nonattainment or maintenance areas for ozone
or carbon monoxide. Nonurbanized areas are not eligible recipients under this program.
FTA has implemented this program through a regulation, at 49 CFR part 624. In
addition, guidance for the Clean Fuels Program is located in Chapter III of FTA
Circular 9300.1, “Capital Investment Program Guidance and Application Instructions.”

FTA C-5100
05/18/2015

II–5

FTA does not foresee any future allocations of funding under this program. Grants
under this program are subject to the applicable requirements of 49 U.S.C. 5307. To be
eligible for funding under this program, projects must be included in the TIP and/or
STIP.
(2) Discretionary Bus and Bus Facilities Program (formerly 49 U.S.C. 5309)
The Section 5309 Bus and Bus Facilities Program was a former discretionary grant
program for bus transit projects. Allocations of funding under this program were made
either through congressional direction (“earmarks”) or through a competitive
discretionary solicitation of proposals. This program was repealed under MAP-21 and
replaced with the Section 5339 Bus and Bus Facilities Formula Program.
From 2010 through 2012, FTA allocated discretionary funding under this program to
proposals solicited through several notices of funding availability (NOFAs). The
NOFAs identified eligible project types and discretionary selection criteria and were
based on specific policy initiatives, including:
(a) State of Good Repair Initiative;
(b) Bus Livability Initiative; and
(c) Veterans Transportation and Community Living Initiative.
Funds awarded in response to these NOFAs are available for obligation until they lapse,
and are subject to the program terms and requirements at the time of allocation. Section
5309 Bus and Bus Facilities funds cannot be combined with Section 5339 Bus and Bus
Facilities funds in a grant application. Additional information on the Section 5309 Bus
and Bus Facilities Program is available in FTA Circular 9300.1.
b. New and Revised Programs Under MAP-21.
(1) Urbanized Area Formula Program (49 U.S.C. 5307)
The Urbanized Area Formula Program (49 U.S.C. 5307) provides funding for capital
assistance, planning, and operating assistance for public transportation in urbanized
areas as defined by the U.S. Census Bureau. FTA apportions Urbanized Area Formula
Program funds to designated recipients for urbanized areas with populations of 200,000
or more. FTA apportions funds to states for urbanized areas with populations between
50,000 and 199,999. Funds are allocated to eligible projects by the state or designated
recipient in coordination with the metropolitan and statewide planning processes. FTA
has provided guidance for Section 5307 in the most recent version of FTA Circular
9030. Section 5339 funds may be transferred to 5307 but must still meet 5339 eligibility
requirements. See Chapter III for more information on transfer provisions.
(2) Fixed Guideway Capital Investment Program – New and Small Starts and Core
Capacity Improvements (49 U.S.C. 5309)

II–6

FTA C-5100
05/18/2015
The Fixed Guideway Capital Investment Grants Program is a discretionary grant
program that funds the construction of new fixed guideway systems or extensions to
existing fixed guideway systems and, as amended by MAP-21, projects that will expand
the core capacity of existing fixed guideway corridors. States and local governmental
authorities are eligible applicants for Section 5309 funds.
Eligible projects include rapid rail (heavy rail), commuter rail, light rail, trolleybus
(using overhead catenary), cable car, passenger ferries, and bus rapid transit systems.
The Small Starts program also includes corridor-based bus rapid transit systems that do
not operate on a separate fixed guideway but include features that emulate the services
provided by rail fixed guideway including defined stations, traffic signal priority, and
short headway bidirectional services for a substantial part of weekdays and weekend
days. The Core Capacity Improvement program provides funds for substantial, corridorbased investments in existing fixed guideway systems that are at capacity or will be in
five years. Core Capacity Improvement projects must increase the capacity of the
existing fixed guideway system in the corridor by at least 10 percent, and must not be
state of good repair projects.
Projects become candidates for funding under Capital Investment Grant program by
successfully completing steps in the process defined in Section 5309 and obtaining a
satisfactory rating under the statutorily defined criteria. For New Starts and Core
Capacity Improvement projects, the steps in the process include project development,
engineering, and construction. For Small Starts projects, the steps in the process include
project development and construction. New Starts and Core Capacity Improvement
projects receive construction funds from the 5309 program through a full funding grant
agreement (FFGA) that defines the scope of the project and specifies the total multiyear
federal commitment to the project. Small Starts projects receive construction funds
through either a single-year grant or a multiyear grant agreement (Small Starts Grant
Agreement) that defines the scope of the project and specifies the federal commitment
to the project.
Section 5339 funds may be used to complement funding awarded under the Fixed
Guideway Capital Investment Program, as well as to support the continued capital
investment needs of completed projects.
Additional information about the Fixed Guideway Capital Investment program is
available at http://www.fta.dot.gov/12304.html or the final rule on Major Capital
Investment Projects at http://www.gpo.gov/fdsys/pkg/FR-2013-01-09/pdf/201231540.pdf.
(3) State of Good Repair Formula Program (49 U.S.C. 5337)
The Section 5337 State of Good Repair Formula Program is a formula grant program
that provides funding to urbanized areas with High Intensity Fixed Guideway systems
and High Intensity Motorbus systems. The program helps maintain these public
transportation systems in a state of good repair by financing replacement and

FTA C-5100
05/18/2015

II–7

rehabilitation projects for existing High Intensity Fixed Guideway systems and High
Intensity Motorbus systems that have been in operation for at least seven years. This
program was established under MAP-21, which concurrently repealed the Section 5309
Fixed Guideway Modernization Formula Program.
The State of Good Repair funds must be used for capital projects intended to replace
and rehabilitate fixed guideway systems and high intensity motorbus systems. Eligible
projects include the replacement and rehabilitation of rolling stock, tracks, line
equipment and structure, signals and communications, power equipment and
substations, passenger stations and terminals, security equipment and systems,
maintenance facilities and equipment, operational support equipment (including
computer hardware and software), and development and implementation of transit asset
management plans.
FTA apportions State of Good Repair funds to designated recipients in the UZAs
according to a statutory formula. The formula for High Intensity Fixed Guideway
comprises: (1) a modified version of the formula used under SAFETEA-LU, reflecting
the new definition of fixed guideway; and (2) vehicle revenue miles and directional
route miles that are attributable to a UZA. High Intensity Motorbus apportionments are
60 percent based on vehicle revenue miles and 40 percent based on directional route
miles.
Additional information on the Section 5337 State of Good Repair Formula Program will
be available in Circular 5300.1.
(4) Rural Area Formula Program (49 U.S.C. 5311)
The Rural Area Formula Program is a formula grant program that provides capital,
planning, and operating assistance to states to support public transportation in rural
areas with populations less than 50,000. FTA apportions these funds under this program
to the governor or the governor’s designee. Eligible applicants include states and Indian
tribes. Eligible subrecipients include nonprofit organizations, operators of public
transportation, or intercity bus service that receive funds indirectly through a recipient.
Section 5339 Bus and Bus Facilities funds may be transferred to 5311 but must still
abide by 5339 eligibility guidelines.
The Tribal Transit Program is a takedown from the Section 5311 program, and funds
are allocated by formula and on a discretionary or competitive basis. Formula factors
include vehicle revenue miles and the number of low-income individuals residing on
tribal lands. Discretionary funds are allocated based on criteria established for the
program. Eligible direct recipients are federally recognized Indian tribes in rural areas.
The funds are to be allocated for grants to Indian tribes for any purpose eligible under
Section 5311, which includes capital, operating, planning, job access and reverse
commute projects, and administrative assistance for rural public transit services and
rural intercity bus service.
The Appalachian Development Public Transportation Assistance Formula Program is

II–8

FTA C-5100
05/18/2015
also a takedown from the Section 5311 program. This program provides formula funds
to support public transportation for states in the Appalachian region. Funds are
allocated for any purpose eligible under Section 5311.
Additional information on the Section 5311 Rural Area Formula Program is available in
the most current version of FTA Circular 9040.1.
(5) Transit-Oriented Development Planning Pilot Program
The Transit-Oriented Development Planning Pilot Program was established by Section
20005(b) of MAP-21. This program provides funding to advance planning efforts that
support transit-oriented development (TOD) associated with new fixed guideway and
core capacity improvement projects. TOD focuses growth around transit stations to
promote ridership, affordable housing near transit, revitalized downtown centers and
neighborhoods, and encourage local economic development. Funds from Section 5307
may be used to support planning projects that receive funding under this program, or
may be used for capital projects relating to TOD projects.

FTA C-5100
05/18/2015

II–9

This page intentionally left blank

FTA C-5100
05/18/2015

III–1
CHAPTER III
GENERAL PROGRAM INFORMATION

1. APPORTIONMENT OF PROGRAM FUNDS. MAP-21 authorizes funding for the Bus and
Bus Facilities formula program. FTA apportions Bus Program funds to states and designated
recipients according to a statutory formula. In addition, states and territories (including the
District of Columbia and Puerto Rico) receive a fixed allocation, referred to as the National
Distribution, before FTA applies the formula. The funds made available for Section 5339 for a
given fiscal year are apportioned as follows:
a. Of the total made available, a percentage identified within the apportionment notice in the
Federal Register is set aside for National Distribution for each state, territory and the
District of Columbia.
b. Of the remaining funds made available, 86.65 percent is allocated to designated recipients
for use in urbanized areas (UZAs) of at least 200,000 in population and further subdivided
into the categories as follows:
(1) 9.2 percent of the funds under (b) are for the incentive tier and are allocated on the basis
of bus passenger miles traveled squared, divided by operating costs.
(2) 90.8 percent of the funds under (b) are for the nonincentive tier, with 73.39 percent
apportioned to UZAs of one million or more in population and 26.61 percent
apportioned to UZAs under one million in population.
c. Of the remaining funds made available, 13.35 percent is allocated to states for use in UZAs
of less than 200,00 in population and further subdivided into the categories as follows:
(1) 50 percent of the funds under (c) are allocated to UZAs on the basis of the population of
the UZAs; and
(2) 50 percent of the funds under (c) are allocated to UZAs on the basis of population
multiplied by the population densities of the UZAs.
FTA is required to apportion funds appropriated for the Bus Program for any fiscal year (FY)
no later than the tenth day after the date the amounts are appropriated or October 1st of the
fiscal year for which the amounts are appropriated, whichever is later. Apportionments are
published in the Federal Register.
2. APPORTIONMENT DATA. For UZAs with less than 200,000 in population, the formula is
based on population and 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, as
well as population and population density.
FTA obtains population and population density data from the most recent decennial census.
FTA obtains all other data used for formula apportionments from the latest report year of

III–2

FTA C-5100
05/18/2015

validated data reported in the National Transit Database (NTD). For purposes of the formula,
FTA may not use data that is submitted late or data that FTA cannot validate. Transit providers
making data submissions should refer to the current editions of the NTD Reporting Manuals
and Uniform System of Accounts in reporting to the NTD. Copies of these publications and
other NTD policy statements and reporting guidance can be found on the NTD website
at http://www.ntdprogram.gov/ and can be requested from the following address: FTA Office
of Budget and Policy, Office of Strategic Planning and Analysis, 1200 New Jersey Avenue SE,
Washington, DC 20590; or by telephone at 202-366-4050. The National Transit Institute
provides provides annual workshops on the NTD for persons reporting to the database on
behalf of recipients.
3. AVAILABILITY OF FUNDS. Section 5339 funds are available for obligation during the
federal fiscal year for which they were apportioned plus three additional years. For example,
funds appropriated in fiscal year 2013 are available until September 30, 2016. Any funds
remaining unobligated at the end of the period of availability are added to the next year’s
program apportionment and are reapportioned among all states and designated recipients
together with funds made available for the next fiscal year.
4. TRANSFER OF APPORTIONMENTS.
a. From the State’s National Distribution Allocation: Consistent with 49 U.S.C. 5339(e)(1),
the governor of the state may transfer any part of the state’s apportionment, specifically the
National Distribution allocation, to supplement amounts apportioned to the state under
Section 5311(c) or amounts apportioned to the state for areas under 200,000 in population
under Section 5307. Transferred funds must be used for eligible Bus Program activities,
even if combined in a grant with other Section 5307 or 5311 funding. This transfer is for
administrative purposes only and allows 5307 direct recipients to apply directly to FTA for
their allocation.
b. Notification to FTA. Federal requirements do not mandate FTA approval prior to transfer
of an apportionment, but the governor must provide notification to FTA of a transfer for
each transaction so that FTA can accurately reflect this transfer decision in overall program
budget levels and apportionment records. In addition, the grant application project budget
must show the amount of transferred funds.
c. Insular Areas. First enacted in 1978, 48 U.S.C. 1469a authorizes federal agencies that make
grants to specified insular areas, including the Virgin Islands, to consolidate any and all
grants made to an insular area making the new consolidated funds available for programs
and purposes authorized for any of the grants that are being consolidated.
5. ELIGIBLE CAPITAL PROJECTS. Eligible capital projects include projects to replace,
rehabilitate, and purchase buses and related equipment, and projects to construct bus-related
facilities. This includes but is not limited to:
a. The acquisition of buses for fleet and service expansion;

FTA C-5100
05/18/2015

III–3

b. Bus maintenance and administrative facilities;
c. The acquisition of vans for fleet and service expansion, including specialized vans and
related facilities used to provide ADA complementary paratransit service:
d. Transfer facilities;
e. Bus malls;
f. Transportation centers;
g. Intermodal terminals;
h. Intercity facilities which are part of a joint development project;
i. Park-and-ride stations;
j. Acquisition of replacement vehicles;
k. Bus rebuilds;
l. Bus overhauls;
m. Passenger amenities such as passenger shelters and bus stop signs;
n. Accessory and miscellaneous equipment such as:
(1) mobile radio units;
(2) supervisory vehicles;
(3) fare boxes;
(4) computers; and
(5) shop and garage equipment.
o. Clean Fuels Projects. Purchases under this category are passenger vehicles used to provide
public transportation and powered by compressed natural gas (CNG), liquefied natural gas
(LNG), biodiesel fuels, batteries, alcohol-based fuels, hybrid electric, fuel cell, clean diesel
(ultra low sulfur content), or other low or zero emissions technology. Eligible activities also
include constructing or leasing clean fuel buses, constructing electrical recharging facilities
for such buses, and constructing new or improving existing public transportation facilities
to accommodate clean fuel buses.
p. Introduction of New Technology. Section 5339 funds may be used for transit-related
technology, such as innovative and improved products that provide benefits to transit,
including Intelligent Transportation Systems (ITS). ITS refers to the use of electronics,

III–4

FTA C-5100
05/18/2015
communications, or information processing used as a single component or in combination
to improve efficiency or safety of a transit or highway system. Examples of transit-related
ITS projects include:
(1) real-time bus arrival information available to passengers through electronic displays at
bus stops;
(2) automatic vehicle locators;
(3) automated passenger counters;
(4) vehicle component monitoring (diagnostics)
(5) advanced fare payment methods
(6) computer-aided dispatching and real-time ridesharing; and
(7) automated information for travelers using more than one mode of transportation.

q. Costs associated with environmental compliance including engineering and design
activities are eligible capital expenses. This includes the preparation of environmental
documents.
NOTE: Planning activities, preventive maintenance activities (other than bus overhauls),
and mobility management activities are not eligible under the section 5339 Bus Program.
r. Design and Art in Transit. Under MAP-21federal transit funds are no longer available to
support public art in transit facilities. Art can be incorporated into facility design,
landscaping, and historic preservation; for example, through the use of floor or wall tiles
that contain artistic designs or patterns, use of color, use of materials, lighting, and the
overall design of a facility. In addition, eligible capital projects include incidental expenses
related to acquisition or construction, including design costs. Therefore, the incidental costs
of incorporating art into facilities and including an artist on a design team continue to be
eligible expenses.
s. Leasing of Capital Assets. When a recipient leases capital assets from another party, leasing
costs are eligible for capital assistance, provided leasing is more cost effective than
purchase or construction. Leasing costs eligible for capital assistance include finance
charges and ancillary costs such as delivery and installation charges. Leasing of capital
assets requires compliance with 49 CFR part 639, “Capital Leases,” and Office of
Management and Budget (OMB) Circular A–94 which prescribes the discount rates.
t. Capital Cost of Contracting. Some FTA recipients turn to an outside source to obtain public
transportation service, maintenance service, or vehicles that the recipient will use in public
transportation service. When a recipient enters a contract for such service, FTA will
provide assistance for the capital consumed in the course of the contract. In the case of a
contractor providing vehicles for public transportation service, the capital consumed is

FTA C-5100
05/18/2015

III–5

equivalent to the depreciation of the vehicles in use in the public transportation service
during the contract period. In the case of a maintenance contract, the capital consumed may
be, for example, depreciation of the maintenance garage, or depreciation of the machine
that lifts the vehicle. Capital consumed may also include a proportionate share of the
interest the contractor might pay out as the contractor purchases and makes available to the
recipient these capital assets. FTA refers to the concept of assisting with capital consumed
as the “capital cost of contracting.”
Only the costs attributable to the privately owned assets are eligible under this policy. FTA
does not provide assistance for any preventive maintenance activities under the Section
5339 Bus Program. With one exception, items purchased with federal, state, or local
government assistance are not eligible.
To avoid imposing burdensome accounting rules with regard to contracts for bus,
paratransit, and demand-responsive related services, FTA will allow the recipient to
consider a percentage of leased service or contracted maintenance capital costs without
further justification and will provide assistance for 80 percent of the resultant amount.
EXHIBIT III-1 shows the percentages and the corresponding type of contract service for
bus, paratransit, and demand-responsive related services. The percentages are calculations
using data from the National Transit Database (NTD). Presented by type of contract, the
calculations represent industry averages in counting capital-eligible activities as a share of
total cost. The percentages apply whether the service is local, express, shuttle, paratransit,
or demand-responsive service.
EXHIBIT III-1
PERCENT OF CONTRACT ALLOWED FOR CAPITAL ASSISTANCE WITHOUT
FURTHER JUSTIFICATION
Bus and Paratransit-Related Contract Services
Type of Contract
1. Service Contract (contractor provides maintenance and transit
service; recipient provides vehicles)
2. Service Contract (contractor provides transit service only;
recipient provides vehicles and maintenance)

Percent of Contract
Eligible for 80 Percent
Federal Share
40 percent
0 percent

3. Vehicle Maintenance Contract (contractor provides maintenance;
recipient provides vehicles and transit service)

100 percent

4. Maintenance/Lease Contract (contractor provides vehicles and
maintenance; recipient provides transit service)

100 percent

5. Turnkey Contract (contractor provides vehicles, maintenance,
and transit service)

50 percent

III–6

FTA C-5100
05/18/2015

u. Project Administration. Administrative activities of an organization pertaining to the
immediate accomplishment or oversight of a project are eligible. Project administration
costs must be directly associated with administering the capital project. While there is no
cap, the costs must be allowable, reasonable, allocable, and in accordance with the
applicable federal costs principles and properly supported. For further guidance on costs
principles see 2 CFR part 225 for states and local governments, and 2 CFR part 230 for
nonprofit organizations. Eligible project administration costs must be identified in a grant
application. General administrative expenses that a designated recipient or state incurs to
implement the program (as contrasted with the eligible costs directly related to
administering a capital project) are not eligible as a direct cost under the 5339 program.
v. Innovative Financing. When integral to a capital investment project, Section 5339 funds
may be used to pay for costs incurred to secure or initiate an innovative financing technique
except that eligible costs may not be more than the cost of the most favorable financing
terms reasonably available at the time of borrowing.
w. Bicycle Facilities. When integral to a capital investment project, Section 5339 funds may be
used for bicycle facilities as described in 49 U.S.C. 5319. Bicycle infrastructure is eligible,
but bicycles are not eligible. For more information on bicycle facilities, please see Section 8
of this chapter.
6. JOINT DEVELOPMENT IMPROVEMENTS. A public transportation project that integrally
relates to, and often co-locates with commercial, residential, mixed-use, or other nontransit
development. Joint development may include partnerships for public or private development
associated with any mode of transit system that is being improved through new construction,
renovation, or extension. Joint development may also include intermodal facilities, intercity bus
and rail facilities (including outfitting), transit malls, or historic transportation facilities. “Joint
development improvements” are an eligible capital expense under 49 U.S.C. 5302(3)(G), and
the term commonly refers to the coordinated development of public transportation facilities
with other, nontransit development, including commercial and residential development.
Coordinated development often involves private and public entities, and is supportive of the
private sector participation provisions of 49 U.S.C. § 5315. Joint development improvements
may include intercity bus stations and terminals, including the outfitting of those stations and
terminals.
FTA’s joint development policy describes additional opportunities to incorporate commercial,
residential, industrial, or mixed-use elements into eligible projects. See FTA Circular 7050.1
“Federal Transit Administration Guidance on Joint Development” for more information on
FTA’s joint development requirements.
7. INTEREST AND DEBT FINANCING AS AN ELIGIBLE PROJECT COST. There are
several areas in which interest is an eligible project cost for FTA’s Section 5339 program
assistance, with certain limitations.

FTA C-5100
05/18/2015

III–7

a. Bond Interest in Advance Project Authority: This applies to a situation in which a recipient
has obligated all of its urbanized area formula funds for capital or planning projects and
would like to carry out any part of a project with local funds which FTA may later
reimburse under advance project authority. This authority, which is set forth in Section
5307(e), permits FTA to participate in the project costs, including any interest payable by
the recipient and earned by the bondholder on bonds issued by the recipient to the extent
the recipient has actually expended the proceeds of the bonds in carrying out the portion of
the project. The recipient must certify that it has shown reasonable diligence in seeking the
most favorable financing terms available in order for interest to be an eligible reimbursable
cost.
b. Buildings and Equipment: Title 2 CFR part 225, formerly Office of Management and
Budget (OMB) Circular A-87, “Cost Principles for State, Local, and Indian Tribal
Governments,” allows financing costs (including interest) associated with otherwise
allowable costs of building acquisition, construction, or fabrication, reconstruction, or
remodeling finished after October 1, 1980, subject to conditions identified below. The term
“building” includes the associated real property (land) and fixtures.
Title 2 CFR part 225 allows financing costs (including interest) paid or incurred on or after
September 1, 1995, associated with otherwise allowable costs of equipment subject to the
conditions cited below. The regulation defines equipment as, “an article of nonexpendable,
tangible personal property having a useful life of more than one year and an acquisition
cost which equals the lesser of (a) the capitalization level established by the governmental
unit for financial statement purposes, or (b) $5,000.”
Conditions associated with the allowable financial costs for buildings and equipment are as
follows:
(1) A bona fide third party external to the governmental unit provides the financing (from
other than tax or user fee sources).
(2) The assets are used in support of federal awards.
(3) Earnings on debt service reserve funds or interest earned on borrowed funds pending
payment of the construction or acquisition costs are used to offset the current period’s
cost or the capitalized interest, as appropriate. Earnings subject to being reported to the
federal Internal Revenue Service under arbitrage requirements are excludable.
(4) For debt arrangements over $1 million, the governmental unit must reduce claims for
interest cost by an amount equal to interest earnings on excess cash flow unless the
governmental unit makes an initial equity contribution to the asset purchase of 25
percent or more. Interest attributable to fully depreciated assets is unallowable.
c. FTA will consider other proposals concerning the eligibility of interest case-by-case. FTA
will use the guidelines provided in 2 CFR part 225, formerly, OMB Circular A-87,
Attachment B, “Selected Items of Cost,” in such considerations.

III–8

FTA C-5100
05/18/2015

8. FEDERAL SHARE OF PROJECT COSTS.
a. Capital Projects. The federal share for capital projects that receive funding under the
Section 5339 program may not exceed 80 percent of the net project cost. Net project cost is
that portion of the cost of a project that cannot reasonably be financed from the grantee’s
revenues.
b. Exceptions. The federal share may exceed 80 percent for certain projects related to ADA,
CAA, and certain bicycle projects as follows:
(1) Vehicles. The federal share is 85 percent for the acquisition of vehicles for purposes of
complying with or maintaining compliance with the Americans with Disabilities Act
(ADA; 42 U.S.C. 12101 et seq.) or the Clean Air Act (CAA; 42 U.S.C. 7401 et seq.).
(2) Vehicle-related Equipment and Facilities. The federal share for project costs for
acquiring vehicle-related equipment or facilities (including clean fuel or alternative fuel
vehicle–related equipment or facilities) for purposes of complying or maintaining
compliance with the CAA, or for meeting the requirements of the ADA, is 90 percent.
FTA considers vehicle-related equipment to be equipment on and attached to the
vehicle.
The grant recipient may itemize the cost of specific, discrete, vehicle-related equipment
being purchased to be in compliance with the ADA or CAA. The federal share is 90
percent of the cost for these itemized elements.
(3) Bicycle Facilities. As provided by 49 U.S.C. 5319, the federal share is 90 percent for
those bicycle access projects or portions of bicycle access projects designed to:
(a) provide access for bicycles to public transportation facilities;
(b) provide shelters and parking facilities for bicycles in or around public transportation
facilities; or
(c) install equipment for transporting bicycles on public transportation vehicles.
NOTE: Bicycles themselves are not an eligible capital expense under the Bus and
Bus Facilities program, only bicycle access related infrastructure.
9. LOCAL SHARE OF PROJECT COSTS. After the appropriate federal share is established, the
applicant must provide the local share of the net project cost in cash (or in-kind) and must
document in its grant application the source of the local match:
Title 49 CFR part 18, “Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Government,” (the common grant rule) at Section 18.24, “Matching

FTA C-5100
05/18/2015

III–9

or Cost Sharing,” describes detailed rules for eligibility, valuation, and accounting for the local
matching share.
The local match may include:
a. Cash from nongovernmental sources other than revenues from providing public
transportation services;
b. Non-farebox revenues from the operation of public transportation service, such as the sale
of advertising and concession revenues. A voluntary or mandatory fee that a college,
university, or similar institution imposes on all its students for free or discounted transit
service is not farebox revenue;
c. Amounts received under a service agreement with a state or local social service agency or
private social service organization;
d. Undistributed cash surpluses, replacement or depreciation cash funds, reserves available in
cash, or new capital.
10. ADDITIONAL LOCAL SHARE INFORMATION.
a. Revenue Bond Proceeds as Local Share. A recipient of Section 5339 funds may use the
proceeds from the issuance of revenue bonds as part of the local match for a capital project,
with prior FTA approval. Farebox receipts are one type of revenue that may be used to
secure the bonds. Use of the proceeds of revenue bonds as local share will be approved
only if FTA finds that the aggregate amount of financial support for public transportation in
the UZA provided by the state and affected local governmental authorities during the next
three fiscal years, as programmed in the STIP, is not less than the aggregate amount
provided by the state and affected local governmental authorities in the UZA during the
preceding three fiscal years.
b. Transportation Development Credits (formerly referred to as Toll Revenue Credits). A state
may use, as a credit toward a project’s local share, certain expenditures it has made with
toll revenues. The amount of credit toward local share to be earned by a state is based on
revenues generated by toll authorities within the state that are used by the authorities to
build, improve, or maintain highways, bridges, or tunnels that serve interstate commerce. A
recipient wishing to apply the provisions of 23 U.S.C. 120(j) should discuss with its state
Department of Transportation (state DOT) the availability of transportation development
credits for use as local share in matching FTA grants, and should obtain a letter from the
state DOT indicating that TDCs are available for a project prior to submitting a grant
application in FTA’s electronic grants management system. FHWA oversees the
determination of transportation development credits within each state, and FTA follows the
FHWA methodology for calculating these credits as match. FTA will not approve a
retroactive application of transportation development credits.
The effect of utilizing transportation development credits means that FTA, in essence,
provides 100 percent of the total net project cost. For example, if the actual cost of the asset

III–10

FTA C-5100
05/18/2015
the applicant will purchase is $500,000, FTA’s share at 80 percent equals $400,000. The
remaining $100,000 match is transportation development credits, so additional federal
funds are needed to equal $500,000 or 100 percent of the net project cost.
FTA calculates a project using transportation development credits as shown in the example
below:
Actual cost of the asset

Federal share (80%)
Local share (20%)

$500,000
=======
$400,000
$100,000 (from toll revenue credits)
$500,000

=======
In FTA electronic award management system, the recipient will enter the following:
Total project cost
$500,000
$500,000
Federal share
FTA requires the recipient to state within the comment section of the FTA electronic award
management system that transportation development credits provide, in this example,
$100,000 for the local share and to attach supporting documentation to the grant from the
state approving the use and specific amount of transportation development credits.
c. Use of Program Income as Local Share. Recipients may use program income generated by
an earlier grant as the local share for a subsequent eligible public transportation project.
Recipients may not use program income as the local share for the grant that generated the
income. Program income means gross income received by the grantee or subgrantee
directly generated by a grant supported activity, or earned only as a result of the grant
agreement during the grant period. In general, program income includes income from fees
for services performed, from the use or rental of real or personal property acquired with
grant funds, from the sale of advertising and concessions, from social service contract
revenue, and from the sale of commodities or items fabricated under a grant agreement.
Except as otherwise provided in regulations, program income does not include interest on
grant funds; nor does program income include rebates, credits, discounts, refunds, and
interest earned on any of them. FTA Circular 5010, Grant Management Requirements,
discusses program income in some depth, as does 49 C.F.R 18.25. FTA Circular 5010.1
notes that recipients may retain program income so long as they use it for public
transportation purposes, that is, for allowable capital, and operating expenses.
The recipient’s accounting system must be capable of identifying program income and the
purpose for which the recipient used it. The recipient must account for program income in
its accounting system, which FTA subjects to audit. The Federal Financial Report requires
the reporting of program income.

FTA C-5100
05/18/2015

III–11

d. Providers of Public Transportation by Vanpool. Section 5323(i)(2) permits recipients to
count as local match amounts that are expended by a private provider of the public
transportation by vanpool for the acquisition of rolling stock to be used by the provider in
the recipient’s service area. This excludes any amounts received from federal, state, or local
governments for the purchase of the rolling stock.
A private provider of public transportation by vanpool may use revenues it receives in the
provision of public transportation service in the service area of a recipient that are in excess
of the provider’s operating costs to acquire rolling stock, provided that the recipient and
provider have entered into a legally binding agreement requiring the provider to use the
rolling stock in the recipient’s service area.
The effect of this provision is to allow revenues received in the operation of public
transportation service by vanpool that exceed operating expenses to be re-invested in
capital equipment and to be counted toward a recipient’s local match requirement under a
capital cost of contracting grant agreement. If an applicant intends to utilize this provision
in a grant, the applicant must inform FTA in advance of submitting the grant and must
attach the required agreement to the application in FTA’s electronic award management
system. The agreement must specify the amount intended to be counted as local match and
must identify any amounts under that agreement that have already been applied as local
match on any other previous grants. FTA reserves the right to request any additional
information necessary to justify the use of this provision in a grant application.
The term “private provider of public transportation” means a private entity providing
vanpool service in the service area of a recipient of Section 5339 funds using a commuter
highway or vanpool vehicle. These types of vehicles must have the seating capacity of at
least six adults (not including the driver) and at least 80 percent of the vehicle’s mileage
can be reasonably expected to be for the purposes of transporting commuters in connection
with travel between their residences and their place of employment.
e. Other Federal Funds. In addition to funds from Section 403 of the Social Security Act, in a
very limited number of situations, other federal funds may be eligible for inclusion in the
local match. Such use is dependent upon agreement by the federal agency. As an example,
Community Development Block Grant funds administered by the Department of Housing
and Urban Development (HUD) may be used to provide the local share of federal public
transportation projects so long as the public transportation activities are:
(1) Eligible for assistance under the Community Development Block Grant Program; and
(2) In compliance with HUD regulations, “Community Development Block Grants,” 24
CFR part 570. See 42 U.S.C. 5305(a)(9) and 24 CFR 570.201(g).
Please contact the applicable federal agency to see if their funds can be used as match for
FTA funds.
f. Public–Private Partnerships. Grantees may use in-kind contributions of real property as part
of the local matching share so long as the property to be donated is needed to carry out the

III–12

FTA C-5100
05/18/2015
scope of the approved project. The property can be owned and donated by the grantee or by
a third party. The in-kind contribution allowance will be based on the current market value
as independently appraised. Appraisals for property being donated, regardless of appraised
value, must be submitted to the FTA regional or metropolitan office. FTA must review and
concur on in-kind contributions of any value before federal funds are expended or the value
is used as local match. In-kind contributions must also be documented in the grant
application.
Credit can only be allowed for the value of the portion of real property used or consumed
by the project. If part of a larger parcel is to be used as local match and the remaining
subparcel is intended to be used at a future date for future match, the grantee is cautioned to
clearly indicate the limits of the subparcel to be used as local match and the appraised
amount associated with the subparcel. The remnant subparcel can then follow the same
procedure for future local match. If the entire parcel is provided as a local match and no
delineation is made related to possible use of the excess subparcel as overmatch, eligibility
of the over-match subparcel may be lost. If federal funds were used to purchase the
property, only the nonfederal share of such property may be counted as the value of the inkind contribution, see 49 CFR 18.24(f). Title 49 CFR part 18, “Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Government,”
(otherwise known as the Common Grant Rule) at Section 18.24, “Matching or Cost
Sharing,” describes detailed rules for eligibility, valuation, and accounting for the local
matching share.

11. ALTERNATIVE FINANCING. Section 5339 recipients, especially those wishing to undertake
major capital projects, are encouraged to explore alternative methods of financing transit
projects, in addition to grant funding. Alternative financing can involve combining multiple,
nontraditional sources of funding as well as federal, state, local, and private funding, in support
of transit capital needs.
a. Approaches recipients might investigate include:
(1) capital leasing arrangements;
(2) joint development;
(3) state economic development or revolving loan funds;
(4) state infrastructure bank loans;
(5) state and federal tax credit programs;
(6) special tax districts, such as transportation development districts, special benefit
districts, and tax increment financing;
(7) exchanges of real property; and
(8) in-kind contributions.

FTA C-5100
05/18/2015

III–13

b. Recipients with a dedicated funding source (e.g., sales tax proceeds, transportation
development district proceeds, tax increment financing proceeds, and other revenue sources
including user fees) may wish to consider a direct loan or loan guarantee, as provided under
the Transportation Infrastructure Financing and Innovation Act (TIFIA), as amended by
Section 2002 of MAP-21 (23 U.S.C. 601 et seq.). Eligible projects include any transit
capital project that is anticipated to meet the threshold size. Threshold sizes for projects are:
(1) $50 million; or
(2) $25 million for rural projects and those in cities of 250,000 or less in population; or
(3) $15 million for intelligent transportation system (ITS) projects; or
(4) 33 ⅓ percent of the most recently completed fiscal year’s FHWA formula
apportionment for the state in which the project is located.
TIFIA direct loans or loan guarantees must be repaid with nonfederal funds. Multiple
related projects constituting a program of projects may be grouped in order to meet the cost
threshold as long as the credit assistance is secured by a common pledge of revenues.
Implementation of the TIFIA program is the responsibility of the secretary of
Transportation. The FTA provides staff support for eligible transit loans, transit loan
guarantees, and transit standby lines of credit. On July 31, 2012, the DOT issued a Notice
of Funding Availability (NOFA), which announced the availability of funding and the
revised TIFIA application process under MAP-21. Each potential applicant must submit a
detailed Letter of Interest (LOI). The DOT will review submissions, on a rolling basis, to
determine whether the project meets the requirements for TIFIA participation. DOT Credit
Council provides policy directions and makes recommendations to the secretary regarding
the selection of projects for credit assistance with final approval by the secretary.
Contact:
Innovative Program Delivery Office
TIFIA Joint Program Office (HITJ)
US Department of Transportation
1200 New Jersey Avenue, SE
Room E64-462
Washington, DC 20590
Fax: 202-366-0828
[email protected]
http://www.fhwa.dot.gov/ipd/tifia/index.htm
12. DEFERRED LOCAL SHARE. A recipient may request, on a case-by-case basis, that all or a
portion of the local share for a project be deferred until 100 percent of the federal funds have
been drawn down or other period. A request for the deferral must accompany the grant

III–14

FTA C-5100
05/18/2015

application. A recipient that intends to use deferred local share must receive FTA approval
prior to the obligation of the grant. FTA will specify the terms and schedule for the deferral.
Approval is contingent upon the deferral resulting in benefits to transit and upon the recipient
demonstrating that it has the financial capacity to complete the project. Local share cannot be
deferred indefinitely. When FTA approves the use of deferred local share, the local funds must be
available and used to match drawn-down federal funds in the time period specified by FTA’s
approval.
Generally, FTA will not approve retroactive deferral of local share. In exceptional circumstances,
FTA may approve retroactive deferral of local share; for example, in response to a catastrophic
event such as a hurricane or flood where sources of local funds are temporarily disrupted.

FTA C-5100
05/18/2015

III–15

This page intentionally left blank

FTA C-5100
05/18/2015

IV–1
CHAPTER IV
PLANNING AND PROGRAM DEVELOPMENT

1. METROPOLITAN AND STATEWIDE PLANNING REQUIREMENTS. A grant applicant

requesting Section 5339 assistance must comply with the planning requirements of 49 U.S.C.
5303, 5304, and 5306. Before Federal Transit Administration (FTA) may make grants to
recipients, adequate planning must take place. The project proposed must be a product of the
metropolitan planning process and/or the statewide and nonmetropolitan transportation
planning process specified in 49 CFR part 613 and 23 CFR part 450. All transit projects for
which federal funds are expected to be used and that are within metropolitan planning
boundaries must be included in a Metropolitan Transportation Plan and transportation
improvement plan (TIP) developed and approved by the metropolitan planning organization
(MPO) and the chief executive officer of a state and in a statewide transportation improvement
plan (STIP) that has been approved by FTA and Federal Highway Administration (FHWA).
Projects not within metropolitan planning boundaries are required only to be in the STIP. The
grant application should identify the latest approved STIP (or amendments) containing the
project(s), the appropriate page numbers or other identifying numbers, and a statement
identifying the date that FTA and FHWA approved the STIP (or STIP amendment) that
contains the proposed project(s) within the appropriate section of the FTA electronic award
management system. Projects listed in the TIP and STIP must be derived from and consistent
with the state’s long-range plan and MPO metropolitan plan.
Each project in the TIP/STIP must include sufficient descriptive material to identify the project
or phase of the project. In addition, each project in the TIP/STIP must indicate reasonably
expected resources to carry out the project.
FTA and FHWA are responsible for issuing joint planning regulations implementing Sections
5303, 5304, and 5305. More information on the planning process can be found in:
a. “Statewide Transportation Planning” and “Metropolitan Transportation Planning,” 23 CFR
parts 450 and 500, and 49 CFR part 613. The regulations outline the requirements for state
Departments of Transportation (state DOTs), MPOs, and public transportation operators to
conduct a continuing, comprehensive, and coordinated transportation planning and
programming process in metropolitan areas and states; and
b. FTA Circular 8100.1C (http://www.fta.dot.gov/documents/FTA_C_8100.1C.pdf),
Program Guidance for Metropolitan Planning and State Planning and Research Program
Grants.

2. TRANSPORTATION MANAGEMENT AREAS. Title 49 U.S.C 5303(k) identifies all
urbanized areas (UZAs) with a population of over 200,000 individuals as transportation
management areas (TMA). The secretary of Transportation shall designate any additional area
as a TMA on the request of the governor and the metropolitan planning organization designated
for the area.

IV–2

FTA C-5100
05/18/2015

Joint FTA/FHWA transportation planning regulations contained in 23 CFR part 450 include
guidelines for setting the metropolitan planning area boundaries of MPOs, including those that
are in, or comprise, TMAs. In some cases, the MPO-established metropolitan planning area
boundaries for MPOs that are in, or comprise, TMAs may also include one or more UZAs with
populations under 200,000. The governor of a state may allocate formula fund apportionments
to small UZAs located within or designated as Transportation Management Areas (TMAs) that
are different from the allocations FTA publishes.
Before the enactment of MAP-21, a “designated recipient” was defined as an entity designated,
in accordance with the planning process under Sections 5303, 5304, and 5306, by the chief
executive officer of a state, responsible local officials, and publicly owned operators of public
transportation, to receive and apportion amounts under Section 5336 that are attributable to
transportation management areas identified under Section 5303; or a state or regional authority
if the authority is responsible under the laws of a state for a capital project and for financing
and directly providing public transportation. The reference to TMAs was directed at areas with
200,000 or more in population (large UZAs) identified by the Census Bureau. FTA did not
interpret the reference to include areas under 200,000 in population, which the secretary
designated as TMAs at the request of the governor and the MPO. Such designations are for
planning purposes only.
3. PERFORMANCE-BASED PLANNING. MAP-21 established a broad performance
management program that significantly impacts the metropolitan and statewide transportation
planning process. The performance management approach presents a transparent, accountable
decision-making process for MPOs, states, and providers of public transportation to identify
multimodal capital investments and project priorities. MAP-21 includes a number of provisions
that attempt to integrate a new performance management approach into the existing
metropolitan and statewide planning process described below.
MAP-21 requires MPOs and states to develop their long-range transportation plans and
transportation improvement programs through a performance-driven, outcome-based approach
to planning for the metropolitan and nonmetropolitan areas of the state.
a. The metropolitan and statewide transportation planning process should provide for the

establishment and use of a performance-based approach to transportation decision making
to support the national goals described in Section 150(b) and the general purposes
described in Section 5301. In development of their metropolitan transportation plan and
long-rage statewide transportation plan, MPOs and states must include a description of the
transportation system performance measures and respective performance targets that
address the performance measures established by the U.S. Department of Transportation
(USDOT) under 23 U.S.C. 150(c).

b. The MPO’s transportation plan and state’s long-range statewide transportation plan should

include a system performance report and subsequent updates evaluating the condition and
performance of the transportation system with respect to the established performance
targets.

FTA C-5100
05/18/2015

IV–3

c. The MPO’s TIP and state’s STIP must demonstrate the linkage between investment
priorities and the performance targets by including a discussion of the anticipated effect of
the STIP/TIP toward achieving the performance targets established in the transportation
plan.
FTA and FHWA issued revised joint planning regulations implementing Sections 5303 and
5304 that address performance-based planning. More information on the planning process can
be found in “Statewide Transportation Planning” and “Metropolitan Transportation Planning,”
23 CFR parts 450 and 500, and 49 CFR part 613. The regulations outline the requirements for
state DOTs, MPOs, and public transportation operators to conduct a continuing,
comprehensive, and coordinated transportation planning and programming process in
metropolitan areas and states.
4. ROLE OF DESIGNATED RECIPIENT AND METROPOLITAN PLANNING
ORGANIZATION IN ALLOCATING PROGRAM FUNDS. Under the Section 5339 program,
the state or designated recipient is the entity responsible for “receiving and allocating” the
amounts made available by Congress and apportioned by FTA to an UZA. Eligible recipients
under Section 5339 are designated recipients that operate fixed route bus service or that
allocate funding to fixed route bus operators.
Pursuant to 49 U.S.C. 5303(d), an MPO, which in some cases may also serve as the designated
recipient of Section 5339 funding, is the forum for cooperative decision making to carry out the
transportation planning process.
Both the planning requirements and the statutory provisions of 49 U.S.C. Chapter 53 specify
the roles of the MPO and of the designated recipient. While the MPO develops and adopts the
TIP, the designated recipient, which may in some cases also be the MPO, has the primary
responsibility to develop the program of projects (POP) for the Section 5339 funds apportioned
to its large UZA for inclusion in the TIP. In the case of multiple designated recipients or
multiple MPOs, the designated recipient or designated recipients must work with the MPO to
ensure that the POP requirements are met by inclusion of all projects in the TIP or TIPs. The
MPO and the designated recipient have to work cooperatively to develop the TIP and agree on
how to spend Section 5339 funds.
5. MULTIPLE DESIGNATED RECIPIENTS IN LARGE UZAS. In those UZAs with more than
one designated recipient, FTA expects local officials, operating in consultation with the MPO,
to determine the allocation of Section 5339 funds together. The designated recipient(s) and the
MPO(s) should determine the subarea allocation fairly and rationally through a process based
on local needs and agreeable to the designated recipients. A subarea allocation that is based on
predetermined fixed percentages, for example, is not considered satisfactory in reflecting local
needs.
Designated recipients must provide documentation to FTA showing how the Section 5339
allocation will be split among the designated recipients. FTA may request a written agreement
signed by a representative of each designated recipient involved.
To assist in making such subarea allocations, any UZA may request the appropriate FTA

IV–4

FTA C-5100
05/18/2015

regional office to coordinate with FTA headquarters staff in providing the necessary
disaggregate data used in apportioning the total UZA’s share of the entire Bus and Bus
Facilities Program resource.
6. PROGRAM OF PROJECTS AND PUBLIC PARTICIPATION REQUIREMENTS. Since
Section 5339 recipients must comply with certain Section 5307 grant requirements and since
the program has limited direct recipients, FTA expects designated recipients to develop a POP.
A POP is a list of projects proposed by the designated recipient to be funded from the UZA’s
Section 5339 apportionment. If more than one designated recipient will apply for grants for
projects in the POP, each grant application must include the portion of the POP included in that
grant. The POP includes a description of the projects, including any suballocation among
public transportation providers, total project costs, local share, and federal share for each
project. Recognizing that states and designated recipients are required to have a POP under
other programs such as Section 5307, Section 5339 projects may be included in other program
POPs for administrative purposes.
a. Programming in TIP. Eligibility for FTA Section 5339 requires the MPO to list capital
assistance projects in the approved TIP or STIP, or both. The designated recipient is
responsible for developing the POP, while the MPO is responsible for placing the projects
in the TIP.
Projects included in an FTA grant application must be derived from that part of a
metropolitan area’s TIP (approved by the MPO, found to be consistent with the
metropolitan area’s long-range plan by FTA, and approved by the governor) that is within
an approved STIP. The first-year program of the approved TIP constitutes a list of “agreed
to” projects for FTA grant application purposes. The TIP/STIP public participation and
approval processes can serve to satisfy the requirements for public participation under
Section 5339. The list of projects the designated recipient proposes for funding from the
UZA’s Section 5339 apportionment constitutes the POP. Where there are multiple
designated recipients or MPOs the UZA’s POP may be in several separate parts for the
purpose of programming and public participation.
b. Public Participation Requirements. To receive a grant under Section 5339, a recipient must
meet Section 5307(b) requirements concerning public participation in development of a
POP and must certify to compliance with these requirements. The requirements are listed in
49 U.S.C. 5307(b)(1) through (7) and are discussed in the paragraphs below. The
recipient may satisfy these requirements in whole or in part through the development of the
metropolitan TIP and the local coordinated public transit–human service transportation
plan.
The state or the designated recipient for a UZA must:
(1) Make available to the public information concerning the amount of funds available
under the Section 5339 program and the POP that the recipient proposes to undertake
with such funds;

FTA C-5100
05/18/2015

IV–5

(2) Develop a proposed POP for activities the designated recipient will finance, in
consultation with interested parties, including private transportation providers and
human services organizations representing the employment-related transportation needs
of welfare recipients and low income individuals;
(3) Publish the proposed POP in sufficient detail and in such a manner as to afford affected
citizens, private transportation providers, representatives of welfare recipients and low
income individuals, and, as appropriate, local elected officials, reasonable and adequate
opportunity to examine the proposed program and to submit comments on the proposed
program and on the performance of the recipient;
(4) Only states are allowed to program the “national distribution” funding pot under
Category A and/or B under the new 5339 Bus and Bus Facilities Program. Category A
includes projects that are ready to go now and Category B includes projects that are
almost ready to go;
(5) Provide an opportunity for a public hearing to obtain the views of citizens on the
proposed POP;
(6) Ensure that the proposed POP provides for the coordination of Section 5339 public
transportation services with transportation services assisted with other federal sources;
(7) Consider comments and views received, especially those of private transportation
providers, in preparing the final program of projects; and
(8) Make the final POP available to the public (note: where there are multiple designated
recipients and/or multiple MPOs, this public participation requirement may be met in
several separate processes for the different areas involved).
c. Budget Constraints, Additional Information. The total federal share for the final POP may
not exceed the amount apportioned to the UZA or the amount allocated to the designated
recipient from these amounts, plus any Section 5339 carryover funds from previous years.
d. Required Grantee Information. Grant recipient must provide FTA with the following
information for any subrecipient:
(1) the name of the entity receiving the award;
(2) the amount of the award;
(3) the location of the entity receiving the award; and
(4) the primary location of performance under the award, including the city, state, and
congressional district.
Please refer to further FFATA reporting requirement details in Chapter V.
e. Revisions to Program of Projects. Prior FTA approval is not required to reallocate funds

IV–6

FTA C-5100
05/18/2015
among projects included in the approved POP, so long as the single change does not exceed
20 percent of the affected project. Any other changes to the POP require prior approval by
FTA.
If appropriate, revisions to the POP should be accompanied by a budget revision to the
grant in the electronic grant management system (TEAM or a successor thereto). The
recipient should attach the revised POP (after approval if required) to the project
management milestones section in the electronic grant management system. In the grantee’s
milestone progress report, the recipient should reference the date that a new POP was
attached. The most recently updated program of projects submitted by the recipient to FTA
in its quarterly or annual report or in the course of making revisions will be considered the
current approved program of projects, incorporated by reference in the grant agreement.
Below are examples of project and funding revisions that do not change the scope of the
approved POP. Unless FTA notifies the designated recipient otherwise, the following levels
of notification and FTA approval apply to revisions:
(1) Revisions Not Requiring Prior FTA Notification or FTA Approval. The recipient may
make the following revisions without prior notification to FTA, so long as the original
reservation of funds is not impacted:
(a) Delete a project from the POP, if the project cost is less than 20 percent of the total
of the affected POP;
(b) Reallocate funds within an approved POP among approved projects within a local
area or from one local area to another. This includes adjustments of local project
funding levels to accommodate changes in vehicle or equipment requirements; and
(c) Add equipment or property transferred from one subrecipient to another
subrecipient listed in the POP, regardless of whether the items were originally
funded from a different grant.
(2) Revisions Requiring Notification to FTA, but Not FTA Approval. The recipient may
make the following revisions after notifying FTA:
(a) Create new projects that are less than 20 percent of the total of the POP, so long as
the designated recipient has confirmed eligibility and confirms the project is
consisted with the TIP;
(b) Delete or reduce a project by more than 20 percent of the total POP.
(3) Revisions Requiring FTA Approval. The designated recipient may make the following
revisions to an approved POP, and relevant project listing in the TIP and STIP, only
after obtaining approval from FTA:
(a) Prior FTA approval is required when the federal share of the grant exceeds
$100,000 and the cumulative amount of project funds to be transferred between or
among activities, (including all budget revisions since the last one specifically
approved by FTA) exceeds 20 percent;

FTA C-5100
05/18/2015

IV–7

(b) Prior FTA approval is required if the budget revision would:
1. Change the size or physical characteristics of the activities specified in the grant;
2. Increase or reduce the number or revenue rolling stock vehicles to be purchased
by more than two units.
(4) Update of Program of Projects. The most recently updated POP submitted by the
recipient to FTA in its annual milestone progress report or in the course of making
revisions will be considered the approved POP, incorporated by reference in the grant
agreement. Only the addition of federal funds or a change in the scope of the approved
POP requires amendment of the grant agreement.
7. TRANSFER OF FTA FUNDS FOR HIGHWAY PROJECTS. Section 5339 funds are not

available to be transferred between FHWA and FTA for transit or highway projects.

8. REQUIREMENTS RELATED TO VEHICLES AND EQUIPMENT.
a. Useful Life of Project Property. FTA provides a useful life policy for rolling stock, trolleys,
ferries, facilities, and some equipment. Where a useful life policy has not been defined by
FTA, the grantee, in consultation with the FTA regional or metropolitan office must “make
the case” by identifying a useful life period for all equipment, rolling stock, and facilities
with an acquisition value greater than $5,000 to be procured with federal funds. In the grant
application, the grantee shall propose and identify a useful life for the capital asset to be
purchased with federal funds. FTA approval of the grant represents FTA concurrence of the
final determination of useful life for the purpose of project property acquisition. This in
turn will identify the useful life of the federal interest for the disposition of the project
property in later years.
(1) Determining Useful Life for Project Property. The grantee should identify the method
used to determine the useful life. Acceptable methods to determine useful life include
but are not limited to:
(a) Generally accepted accounting principles.
(b) Independent evaluation.
(c) Manufacturer’s estimated useful life.
(d) Internal Revenue Service guidelines.
(e) Industry standards.
(f) Grantee experience.
(g) The grantee’s independent auditor who needs to concur that the useful life is
reasonable for depreciation purposes.
(h) Proven useful life developed at a federal test facility.

IV–8

FTA C-5100
05/18/2015
(2) Rolling Stock Useful Life Policy. Useful life of rolling stock begins on the date the
vehicle is placed in revenue service and continues until it is removed from service. The
useful life in years refers to total time in revenue transit service, not time spent
stockpiled or otherwise unavailable for regular transit use. Minimum useful life for
buses and vans is determined by years in service or accumulation of miles, whichever
comes first, as follows:
(a) Large, heavy-duty transit buses including over the road buses (approximately 35'–
40', and articulated buses): at least 12 years of service or an accumulation of at least
500,000 miles.
(b) Small, heavy-duty transit buses (approximately 30'): at least 10 years of service or
an accumulation of at least 350,000 miles.
(c) Medium, medium-duty transit buses (approximately 25'–35'): at least seven years of
service or an accumulation of at least 200,000 miles.
(d) Medium, light-duty transit buses (approximately 25'–35'): at least five years of
service or an accumulation of at least 150,000 miles.
(e) Medium, light-duty transit buses (approximately 25'–35'): at least five years of
service or an accumulation of at least 150,000 miles.
(f) Other light-duty vehicles used as equipment and in transport of passengers (revenue
service) such as regular and specialized vans, sedans, demo models, light-duty
buses, and all bus models exempt from testing in the current 49 CFR part 665: at
least four years of service or an accumulation of at least 100,000 miles.

b. Early Disposition. FTA calculates the value of vehicles before the end of their minimum
useful life on the basis of a formula using straight-line depreciation. Straight-line
depreciation is a term most often used to indicate that personal property has declined in
service potential. Removal of an FTA-funded vehicle from revenue service before the end
of its minimum useful life, except for reasons of fire, collision, or natural disaster, leaves
the recipient liable to FTA for the federal share of the vehicle’s remaining value. In the case
of project equipment or supplies lost or damaged by fire, casualty, or natural disaster, the
fair market value must be calculated on the basis of the condition of the equipment or
supplies immediately before the fire, casualty, or natural disaster, irrespective of the extent
of insurance coverage. Consistent with this policy, the suggested vehicle useful life
standards stated above in years refer to time in normal service, not time spent stockpiled or
otherwise unavailable for regular transit duty. Please see FTA’s Grant Management
Requirements Circular 5010.1 for more information on disposition.
c. Rolling Stock Spare Ratio Policies. Spare ratio is defined as the number of spare vehicles
divided by the vehicles required for annual maximum service. Spare ratio is usually
expressed as a percentage (50 vehicles required and 20 spare vehicles results in a 20
percent spare ratio). Spare ratios will be taken into account during the review of grant
applications proposing to replace, rehabilitate, or add vehicles to the applicant’s fleet.

FTA C-5100
05/18/2015

IV–9

(1) Bus Fleet. The basis for determining a reasonable spare ratio takes local circumstances
into account, but generally, the number of spare vehicles in the active fleet for
recipients operating 50 or more fixed-route revenue vehicles should not exceed 20
percent of the number of vehicles operated in maximum fixed-route service.
For purposes of the spare ratio calculation, “vehicles operated in maximum service” is
defined as the total number of revenue vehicles operated to meet the annual maximum
service requirement. This is the revenue vehicle count during the peak season of the
year, and on the week and day that maximum service is provided. It excludes atypical
days and one-time special events. Scheduled standby vehicles are permitted to be
included as “vehicles operated in maximum service.”
Buses delivered for future expansion and buses that have been replaced but are in the
process of being disposed of should not be included in the calculation of spare ratio.
In each grant application to replace, rehabilitate, or add vehicles, the applicant must
address the subjects of current spare ratio, the spare ratio anticipated at the time the new
vehicles are introduced into service, disposition of vehicles to be replaced, and the
recipient’s conformance with FTA’s spare ratio guidelines in the fleet status screen in
the FTA electronic award management system. A recipient is required to notify FTA if
the spare ratio computation on which the grant application is based is significantly
altered prior to the grant award.
(2) Contingency Fleet. FTA recognizes two types of vehicles—active and contingency.
Vehicles may be placed in an inactive contingency fleet, or “stored,” in preparation for
emergencies. No vehicle may be placed in this inactive contingency fleet unless the
vehicle has reached the end of its minimum useful life.
Vehicles held in a contingency fleet must be properly stored, maintained, and
documented in a contingency plan, updated as necessary, to support the continuation of
a contingency fleet. A contingency plan is not an application requirement, although
FTA does request information about the contingency fleet when reviewing grant
applications. Contingency plans are also subject to review during FTA’s oversight
reviews, including the triennial reviews required for recipients of the Urbanized Area
Formula Program (49 U.S.C. 5307). Any rolling stock not supported by a contingency
plan will be considered part of the active fleet. Since vehicles in the contingency fleet
are not part of the active fleet, they do not count in the calculation of spare ratio.
d. Requirements Related to the Purchase of Vehicles. Recipients requesting funds for the
purchase of vehicles must meet certain FTA requirements.
(1) Fleet Expansion. Recipients seeking assistance to undertake fleet and service expansion
should describe new markets they intend to serve. The application should address
vehicle needs, fleet size, and spare ratio. FTA may request official property records (or
a Rolling Stock Status Report), in which future needs (expansion and replacement) are
discussed. The source of some of this information may include documentation
developed during the metropolitan and statewide transportation planning processes, in

IV–10

FTA C-5100
05/18/2015
which case summary information and precise reference to the earlier material will be
acceptable. Depending on the degree of expansion, the recipient may also include a map
indicating the fleet and service expansion locations.
In planning for service expansion, local criteria should be used to identify feasible
opportunities for new or expanded routes. These criteria are often based on
demographic measures and are used to identify geographic locations that are good
candidates for new transit service. The recipient should explore all areas within the
region, including areas that are currently served by transit, since they may have
potential for different types of service.
In order to comply with FTA Circular 4702.1B
(http://www.fta.dot.gov/documents/FTA_Title_VI_FINAL.pdf) “Title VI Requirements
and Guidelines for Federal Transit Administration Recipients,” recipients that operate
50 or more fixed-route vehicles in peak service and are located in an urbanized area of
200,000 or more in population must conduct, prior to implementation, service equity
analyses for all major service changes in order to determine whether those changes have
a discriminatory impact.
In addition, all providers of fixed-route public transportation are required to adopt
systemwide service policies to ensure service design and operations practices do not
result in discrimination on the basis of race, color, or national origin. One such policy is
related to vehicle assignment. Vehicle assignment refers to the process by which transit
vehicles are placed into service in bus depots and on routes throughout the transit
provider’s system. Please see FTA Circular 4702.1B, chapter IV, section 4, for
additional information.
(2) Preaward and Post-Delivery Review of Buses. Procurements for revenue service
vehicles to transport passengers, other than sedans or unmodified vans, must be
reviewed in accordance with 49 CFR part 663, “Pre-Award and Post-Delivery Audits of
Rolling Stock Purchases.” Additional guidance is available in the manual, “Conducting
Pre-Award and Post-Delivery Reviews for Bus Procurement” on FTA’s
website: http://www.fta.dot.gov/legislation_law/12921_5424.html. Part 663 requires
any recipient or subrecipient that purchases rolling stock for use in revenue service with
funds obligated after October 24, 1991, to conduct a preaward and post-delivery review
to assure compliance with its bid specifications, Buy America requirements (see
Chapter V), and federal motor vehicle safety requirements, and to complete specific
certifications. Purchase of more than twenty vehicles for use in areas under 200,000 in
population or more than ten for large UZAs with a population of greater than 200,000,
other than unmodified vans or sedans, requires in-plant inspection. In the case of
consolidated procurements on behalf of multiple subrecipients, the in-plant inspection
requirement is triggered only if any single subrecipient will receive more than ten or
more than twenty vehicles, depending on area size.
(3) Bus Testing. Recipients must ensure that buses and vans acquired with FTA funds are
tested consistent with the requirements in 49 CFR part 665 and must obtain a copy of

FTA C-5100
05/18/2015

IV–11

the resulting test report before FTA funds can be released. FTA provides a Bus Testing
section on its website that provides an overview of the program and assists with
understanding applicable procedures and policies: http://www.fta.dot.gov/bustesting.
MAP-21 amended the bus testing provisions under 49 U.S.C. 5318 to require that FTA
establish a pass/fall testing standard. FTA funds will be available to acquire a new bus
model only if it has received a passing score. This requirement will take affect after
FTA has issued regulations establishing the standard.
(4) Buy America. With certain exceptions, FTA may not obligate funds for a public
transportation project unless the steel, iron, and manufactured goods used in the project
are produced in the United States (49 CFR part 661). FTA’s Buy America requirements
at 49 CFR part 661 differ from federal Buy American regulations at 48 CFR part 25.
The former applies to third party contracts funded by FTA, while the latter applies to
direct federal procurements. FTA strongly advises recipients to review 49 CFR part 661
as well as FTA Circular 4220.1
(http://www.fta.dot.gov/legislation_law/12349_8641.html), “Third Party Contracting
Guidance,” before undertaking any procurement. FTA has created a Buy America
website to provide an overview of these requirements as well as policies, procedures,
and letters of interpretation: http://www.fta.dot.gov/buyamerica.
(5) Transit Vehicle Manufacturer Disadvantaged Business Enterprises (DBE) Program
Requirement. Recipients must ensure that each transit vehicle manufacturer (TVM), as
a condition of being authorized to bid or propose on FTA-assisted transit vehicle
procurements, certifies that it has complied with the requirements of 49 CFR part 26,
“Participation by Disadvantaged Business Enterprises in Department of Transportation
Financial Assistance Programs.” The recipient is obligated to determine, by checking
the TVM listing on FTA’s website or by checking with FTA’s Office of Civil Rights at
the time of bid-opening, that the manufacturer likely to receive the contract is in
compliance with part 26.
TVMs must establish and submit to the FTA Office of Civil Rights for approval an
annual overall percentage goal. In setting this overall goal, manufacturers should be
guided, to the extent applicable, by the principles underlying 49 CFR 26.45. TVMs that
are certified to bid on federally funded transit agency contracts are listed on FTA’s
website. For further guidance, contact the FTA Office of Civil Rights.
(6) Vehicle Americans with Disabilities Act (ADA) Requirements. Recipients must ensure
that each transit vehicle meets the accessibility requirements and standards for the
vehicle type specified in 49 CFR parts 37 and 38, as applicable. Where a vehicle or
component departs from the particular technical and scoping requirements, the recipient
must obtain a determination of equivalent facilitation, as described in Section 38.2,
from the FTA administrator under procedures set forth in Section 37.7(b). Where a
specific vehicle type is not addressed by part 38, accessibility requirements must be
determined by USDOT in consultation with the U.S. Architectural and Transportation
Barriers Compliance Board (Access Board) as specified in Section 38.171(c).

IV–12

FTA C-5100
05/18/2015

e. Replacing FTA-Funded Vehicles. FTA has established several policies to ensure that
vehicles acquired with federal funds are maintained and remain in transit use for a
minimum useful life.
(1) Replacement at End of Minimum Useful Life. A vehicle proposed to be replaced must
have achieved at least the minimum useful life. For purposes of bus replacement grant
applications, the age of the bus to be replaced is determined by the number of years of
service or mileage at the time the proposed replacement bus will be introduced into
service, or when the bus was taken out of service.
(2) Replacement before the End of Minimum Useful Life. Early replacement of a vehicle
prior to the end of its minimum useful life requires prior FTA approval. FTA is entitled
to its share of the remaining federal interest. If a vehicle is replaced before it has
achieved its minimum useful life, the recipient has the option of returning to FTA an
amount equal to the remaining federal interest in the vehicle or applying the “Like-Kind
Exchange” policy (discussed below) and placing an amount equal to the remaining
federal interest in the vehicle into a newly purchased vehicle.
To determine the federal interest in a federally funded vehicle during its minimum
useful life, a straight-line depreciation formula is used. For example, a bus with a
twelve-year minimum useful life, or 500,000 miles, will decrease in value each year by
one-twelfth of its original purchase price. Similarly, the federal interest in the bus
decreases each year by one-twelfth of the amount of the federal grant that was awarded
for its purchase. Alternatively, using straight-line depreciation based on mileage, the
value decreases for each mile driven by 1/500,000 of the original purchase price, and
the federal interest in the bus decreases by 1/500,000 for each mile driven. The
unamortized value of the remaining useful life per unit is the greater value obtained by
calculating the straight-line depreciation based on either miles or years, whichever is
more advantageous to the grantee.
(3) Use of Like-Kind Exchange Policy. With prior FTA approval, a vehicle may be traded
in or sold before the end of its minimum useful life if a recipient so chooses. In lieu of
returning the federal share to FTA, a recipient may elect to use the trade-in value or the
sales proceeds from the vehicle to acquire a replacement vehicle of like-kind.
“Like-Kind” is defined as exchanging a bus for a bus with a similar service life. Under
the like-kind exchange policy, proceeds from a vehicle’s sale are not returned to FTA;
instead, all proceeds are reinvested in acquisition of the like-kind replacement vehicle.
If sales proceeds are less than the amount of the federal interest in the vehicle at the
time it is being replaced, the recipient is responsible for providing the difference, along
with the recipient’s local share of the cost of the replacement vehicle. If sales proceeds
are greater than the amount of the federal interest of the vehicle traded in or sold, the
investment of all proceeds in acquisition of the like-kind replacement vehicle results in
reduction of the gross project cost.
See “Example of Like-Kind Exchange Example” in Appendix C of this circular for a

FTA C-5100
05/18/2015

IV–13

sample calculation for the like-kind replacement of a heavy-duty bus, illustrating the
sale of a bus at the bus’s mid-life.
(4) Rebuilding Policies. A recipient may choose to rebuild a vehicle rather than dispose of
it. The vehicle to be rebuilt should be at the end of its minimum useful life, as
previously described, and in need of major structural and/or mechanical rebuilding. The
age of the bus is determined by its years or mileage in service at the time the rebuilding
begins. The minimum extension of useful life for a bus is four years.
With few exceptions, a vehicle rebuilt with FTA funds must be brought into compliance
with the Americans with Disabilities Act (ADA) if that vehicle is not already in
compliance. For additional information, see 49 CFR 37.75 regarding remanufacture of
nonrail vehicles.
f. Rolling Stock Overhauls. Rolling stock overhauls are the only preventive maintenance
capital expense in the section 5339 Bus program. This eligibility for capital assistance
applies also to leasing and to contracted service. Overhauls are usually done to make sure
rolling stock reaches its useful life. Overhaul does not extend the useful life of rolling
stock. This eligibility is in addition to eligibility of rebuilding specifically discussed above
in Chapter IV, subsection 8.e. (4) For rolling stock to be overhauled, it must have
accumulated at least 40 percent of its useful life.
g. Requirements Related to Accessories and Miscellaneous Equipment. A grant application
may include certain miscellaneous items separate from the costs of a bus procurement or
facilities project. For example, a recipient may apply for mobile radios, bus stop signs or
shelters, supervisory vehicles, fareboxes, computers, and shop and garage equipment. The
application must explain the rationale or need for each request. FTA does not require a
separate justification if, for example, a farebox or radio is included in the cost of a new bus,
or shop equipment is included in the cost of a new maintenance facility.
9. REQUIREMENTS RELATED TO FACILITIES. This section contains information concerning
program requirements specific to the construction or acquisition of facilities funded by Section
5339. A recipient may use FTA funds to construct, renovate, or improve an intercity bus or rail
station or terminal provided the terminal meets the eligibility criteria of 49 U.S.C. 5302 (3)(G).
a. General Philosophy. FTA generally assists in building two kinds of facilities:
(1) facilities that support transit operations, such as maintenance garages and administrative
buildings; and
(2) facilities that provide passenger amenities and extend into the built environment, such
as bus or rail terminals, stations, shelters, and park-and-ride lots as well as intermodal
facilities that include both transit and intercity bus or rail services.
b. Useful Life of Facilities. Determining the useful life of a facility must take into
consideration such factors as type of construction, nature of the equipment used, historical
usage patterns, and technological developments. As such, FTA establishes a range of forty–

IV–14

FTA C-5100
05/18/2015
fifty years for the minimum useful life of a facility. A railroad or highway structure has a
minimum useful life of fifty years, and most other buildings and facilities (concrete, steel,
and frame construction), forty years. For further information, see FTA Circular 5010.1
(http://www.fta.dot.gov/images/content_images/C_5010_1D_Grant_Management_Require
ments_2012_Page_Changes_8-27-2012.pdf).

c. Facility ADA Requirements. Recipients must ensure that transit facilities meet the
accessibility standards and requirements specified in 49 CFR parts 37, 38, and 39, as
applicable. Where any departure from the specific requirements is contemplated, as
permitted under 36 CFR part 1191, the recipient must obtain a determination of equivalent
facilitation from the FTA administrator under procedures set forth in section 37.9(d).
d. Shared Use. Shared use of project property requires prior written FTA approval except
when it involves coordinated public transit human services transportation. Shared use
projects should be clearly identified and sufficient detail provided to FTA at the time of
grant review to determine allocable costs related to nontransit use for construction,
maintenance, and operation costs.
e. Facility Size. FTA’s general policy is to provide assistance for facilities that are adequate
for the recipient’s present needs and that will meet, in a realistic way, its needs of the
future. Thus, for a recipient currently operating twenty vehicles, a request for a bus
maintenance garage that will accommodate twenty vehicles and have space for a 10 to 25
percent vehicle increase would be considered an acceptable grant request. For the same
transit agency, a grant request for a garage accommodating forty vehicles would not be
acceptable, unless the recipient could demonstrate its need, willingness, and ability to
expand its fleet to forty vehicles in a relatively short time. In either case, however, the
purchase of enough land for the future expansion of the fleet and supporting facilities may
be justifiable.
f. Project Staging. When applying for a grant to build a facility, a recipient must be able to
fully describe the project and estimate the cost of the facility. Although planning is not
eligible these costs must be included. The next phase is engineering and design, which
would include costs for development of an environmental document, and real estate
appraisals. Once FTA has reviewed and approved the environmental documentation, funds
may be requested for land acquisition and construction.
g. Planning Justifications. There must be a planning basis for every project or for every group
of projects. Accordingly, FTA requires recipients to include the planning justification in the
grant application submitted in the FTA electronic award management system. Planning
activities are not an eligible expense under the Section 5339 Bus and Bus Facilities
Program, however, costs associated with environmental compliance including engineering
and design are eligible capital expenses.
Feasibility studies at varying levels of detail as appropriate and proportionate should be
undertaken in support of projects to acquire, install, or construct major transit facilities. In
the grant application, a recipient may choose to reference and summarize pertinent parts of

FTA C-5100
05/18/2015

IV–15

documents in which results of project studies were reported (e.g., transportation plans,
Unified Planning Work Programs [UPWPs], and management systems). FTA may request
copies of studies or summaries of study results upon reviewing a grant application. The
paragraphs that follow provide additional guidance for various kinds of facilities projects.
(1) Passenger Shelters and Bus Boarding and Alighting Areas. A program for bus shelters
and bus boarding and alighting areas should be developed for the existing and proposed
network based on the operator’s shelter criteria and to the extent the construction
specifications are within its control, and, in the case of significant increases, should be
described in the grant application. Bus shelters and bus boarding and alighting areas
must comply with standards for accessibility established by USDOT regulations
implementing the transportation provisions of the ADA (49 CFR parts 27, 37 & 38, as
amended). A map indicating the transit network and shelter and bus boarding and
alighting area location should be developed and available upon request.
(2) Transfer Facility or Transportation Center. The basis for a new transfer facility or
transportation center should be documented in a planning/feasibility study. Elements
would include a determination of transit demand and other uses, an evaluation of
existing transfer facilities or sites to satisfy existing and future transit needs, an
evaluation and selection of sites if a new facility is warranted, preliminary concept
design and cost estimate of the transit transfer facility, development of a staging and
financing plan, and environmental documentation for the new facility.
(3) Park-and-Ride Facilities. The basis for a new park-and-ride lot should be documented
in a feasibility study. Generally, activities would include an evaluation of demand and
service needs, evaluation of sites to satisfy existing and future transit needs, preliminary
concept design of the park-and-ride lots, development of a staging and financing plan,
and environmental documentation for the new facility.
(4) Maintenance and Administrative Facilities. The basis for new maintenance and
administrative facilities or major expansions or renovations of existing facilities should
be documented in a feasibility study. Activities would include an evaluation of the
condition and adequacy of the existing facility, development of site evaluation criteria,
identification and evaluation of alternative sites based upon site evaluation and design
requirements, final site selection and preliminary concept building design,
environmental documentation, and the development of a staging and financing plan.
10. ENVIRONMENTAL CONSIDERATIONS. Prior to projects receiving FTA funding, FTA is
required to consider every project’s potential impacts on the environment. These environmental
reviews are conducted under the National Environmental Policy Act (NEPA) (42 U.S.C. 4321)
and related federal environmental laws, such as the National Historic Preservation Act,
regulations, and executive orders. The amount of resources required to complete this process
(time, documentation, consultant services, etc.) will vary depending on the type of project and
its potential to impact the human and natural environment. The following list identifies and
briefly describes each level of environmental review that may apply to a project:

IV–16

FTA C-5100
05/18/2015

a. Categorical Exclusion (CE): Projects that historically do not result in significant
environmental impacts may qualify as a CE and will require little to no documentation.
Examples of this type of project are buying a bus or construction of transit facilities
primarily within the transportation right-of-way.
b. Documented Categorical Exclusion (DCE): Projects that historically do not result in
significant environmental impacts but are slightly greater in scope than those qualifying as
a CE may qualify as a DCE. Examples of this type of project may include real property
acquisition or construction of transit facilities with features located outside of the
transportation right-of-way.
c. Environmental Assessment (EA) & Environmental Impact Statement (EIS): Projects that
are complex in scope and/or are viewed as controversial by the public may require the
preparation of an EA. This level of environmental review provides the public an
opportunity to comment and will ultimately determine whether or not the project will result
in any significant impacts. If the analysis in an EA concludes that the project will result in
significant impacts, or if from the early planning stages it is determined the size and scope
of the project will result in significant impacts, an EIS will be required. Most grantees
typically need to enlist consultant services when preparing an EA or EIS.
Grantees should consult with FTA early in the grant application process, and prior to
expending funds for a planned project for which federal funds are requested, to confirm the
appropriate level of environmental review.
Further detail and explanation on the different levels of environmental review can be found in
23 CFR part 771, FTA’s Environmental Impact and Related Procedures. Grantees must receive
confirmation that their proposed FTA-funded project has complied with the policies and
procedures provided in 23 CFR part 771 before the grant application can be approved by FTA
and funds can be obligated.
11. AUTHORITY TO UNDERTAKE PROJECTS IN ADVANCE. There are three different
authorities by which a recipient may incur costs on a project before grant approval and retain
eligibility for reimbursement after grant approval. The first is automatic preaward authority.
The second is a letter of no prejudice (LONP). The third is statutory advance construction
authority. Certain terms and conditions apply equally to all three authorities; these are
discussed below in subsection d.
a. Automatic Preaward Authority. FTA typically grants preaward authority in each fiscal year
apportionments notice published in the Federal Register, and recipients should consult such
notices for details of the preaward authority. For design and environmental review, costs
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 qualify for a categorical exclusion pursuant to 23
CFR 771.118(c), costs 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

FTA C-5100
05/18/2015

IV–17

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 preaward 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. The
authorization of State of Good Repair Grants funds triggers automatic preaward authority
for design and environmental work on the project within the total amount authorized for the
authorization period.
b. If a grant applicant is concerned that a project may not clearly qualify as a CE, it is strongly
encouraged to contact FTA’s regional office for assistance in determining the appropriate
environmental review process and level of documentation necessary. A project must also be
included in the STIP and TIP prior to incurring expenses under preaward authority.
c. The recipient assumes all risk and is responsible for ensuring that all applicable federal
program and grant requirements are met to retain eligibility. Therefore, FTA strongly
encourages all recipients to consult with the appropriate FTA regional office regarding the
eligibility of the project for future FTA funds and the applicability of the conditions and
federal requirements before incurring expenses under automatic preaward authority with
the hope of future reimbursement.
d. Letter of No Prejudice. For a project not covered by the automatic preaward authority,
including projects that will require Section 5339 funds not yet authorized and for which
FTA has not extended preaward authority, a grant applicant that seeks to proceed with a
transit project in advance of the availability of federal funds may request that FTA issue a
Letter of No Prejudice (LONP) for that project. An LONP allows a recipient to incur costs
on a project using nonfederal resources with the understanding that the costs incurred after
the LONP is issued may be reimbursed for eligible expenses or eligible for credit toward
the local match should FTA approve the project for a grant at a later date. The recipient
assumes all risk and is responsible for ensuring that all applicable federal program and
grant requirements are met to retain eligibility. Because project implementation activities
may not be initiated prior to NEPA completion, FTA will not issue an LONP for such
activities until the NEPA process has been completed with a ROD, FONSI, or CE
determination. The project must be in a STIP before a LONP is issued.
Although FTA typically grants automatic preaward authority for Bus and Bus Facilities
formula funds as discussed in subparagraph (a) under this section, a LONP is required if a
recipient wishes to continue to incur costs after the life of the program’s authorization.
Each LONP has an expiration date, which is the date beyond which funding cannot be
requested retroactively for the project. The standard expiration date of an LONP is five
years, after which time the grantee may request a new LONP. In situations such as longterm leases or long-term financing, the LONP may be for an appropriately longer time
period.

IV–18

FTA C-5100
05/18/2015
To obtain an LONP, a recipient must submit a written request accompanied by adequate
information and justification to the appropriate FTA regional office. FTA approval of an
LONP is made in writing and determined on a case-by-case basis.

e. Advanced Construction Authority. The statutory authority to undertake projects in advance,
also referred to as Advanced Construction Authority (ACA), allows recipients to incur
certain project costs before grant approval and retain their eligibility for subsequent
reimbursement after grant approval. ACA is slightly different than the policy-driven
automatic preaward authority and LONP, which are discussed in subparagraphs (a) and (b)
under this section. Under ACA, FTA has already approved the project for funding in the
event funding becomes available. When utilizing this preaward authority, a recipient must
comply with FTA and federal requirements prior to undertaking the project in order to
retain eligibility for reimbursement after grant approval. Under automatic preaward
authority or an LONP, FTA has not yet approved the project for funding.
ACA permits a grant applicant to incur project and financing costs such as bond interest
before FTA awards a grant for the project. FTA may issue ACA under 49 U.S.C. 5339 of
the Bus and Bus Facilities formula grant program provided:
(1) The recipient has completed a grant application and it is on file with FTA.
(2) The project has met all federal requirements, including the DOL certification under
Section 5333(b).
(3) FTA has approved the project as eligible for Bus and Bus Facilities formula funds,
although the funding is not available.
While an ACA reserves the recipient’s right to be reimbursed after FTA has approved the
project, ACA does not constitute a commitment of federal funds until the project is
converted to a regularly financed project. ACA expires on or before the expiration of the
current authorization.
f. Terms and Conditions Applicable to Automatic Preaward Authority, LONP, and ACA. In
general, the terms, conditions, and procedures applicable to recipients having automatic
preaward authority, an LONP, or ACA are as follows:
(1) All federal grant requirements must be met at the appropriate time for a project having
automatic preaward authority, an LONP, or ACA to remain eligible for federal funding.
(2) These authorities are not a legal or implied commitment that the project(s) will be
approved for FTA assistance or that FTA will obligate federal funds.
(3) These authorities are not a legal or an implied commitment that all items undertaken by
the applicant will be eligible for inclusion in the project(s).
(4) The recipient assumes all the risk.

FTA C-5100
05/18/2015

IV–19

(5) All FTA statutory, procedural, and contractual requirements must be met.
(6) All applicable DOT statutory and regulatory requirements must be met.
(7) The project must be included in the STIP.
(8) The recipient must not take any action that prejudices the legal and administrative
findings that the FTA administrator must make in order to approve a project.
(9) Local funds expended by the recipient after the date of the automatic preaward
authority, an LONP, or ACA will be eligible for credit toward local match or
reimbursement if FTA later makes a grant for the project(s) or project amendment(s).
(10) Local funds expended by the recipient before the date of the authority will not be
eligible for credit toward local match or reimbursement
(11) The expenditure of local funds on activities such as land acquisition, demolition, or
construction before the date of preaward authority for those activities (i.e., the
completion of the NEPA process) would compromise FTA’s ability to comply with
federal environmental laws and may render the project ineligible for FTA funding.
(12) The federal amount of any future FTA assistance awarded to the recipient for the
project will be determined on the basis of the overall cost scope of activities and the
prevailing statutory provisions and congressional direction with respect to the
federal/local match ratio at the time the funds are obligated.
(13) When a grant for the project is subsequently awarded, the Federal Financial Report in
the FTA electronic award management system must indicate the use of the automatic
preaward authority, LONP, or ACA. More information and updates regarding automatic
preaward authority and LONPs can be found in FTA’s fiscal year apportionment notice
published in the Federal Register.

IV–20

FTA C-5100
05/18/2015

This page intentionally left blank

FTA C-5100
05/18/2015

IV–21

FTA C-5100
05/18/2015

V–1
CHAPTER V

PROGRAM MANAGEMENT AND ADMINISTRATIVE REQUIREMENTS
1. CERTIFICATIONS REQUIRED BY 49 U.S.C. 5339. Federal Transit Administration (FTA)
recipients must annually certify that they are in compliance with federal transit law as well as
cross-cutting federal requirements. FTA advises recipients to review the annual list of
Certifications and Assurances, located on FTA’s website (www.fta.dot.gov), and on the FTA
electronic award management system’s website (http://ftateamweb.fta.dot.gov). Section
5307(d)(1) lists certain conditions to which Section 5339 recipients must certify as discussed
below. The 1 percent takedown for security and transit improvements in 5307(c)(1)(J) and (K)
does not apply to Section 5339 funds.
a. Consistent with 49 U.S.C. 5307(d)(1)(A), a recipient must certify that it has or will have the
legal, financial, and technical capacity to carry out the program. New grantees must submit
documentation of capacity prior to receiving a grant. Sample documents are available in
Appendix C of this circular.
(1) Legal Capacity. Before FTA may award a grant for a Section 5339 project, FTA must
make a finding that the grant applicant has or will have the legal capacity to carry out
the project. In making this finding, FTA generally relies on the grant applicant’s
certification that it has or will have the legal capacity to carry out the project.
Specifically, the grant applicant must be eligible and authorized under state or local law
to request, receive, and spend FTA funds to administer FTA-assisted projects. Officials
acting on behalf of the applicant must have appropriate authority designated by state or
local law or by the governing body of the applicant. Although FTA does not require
recipients to submit an Opinion of Counsel with each grant application, first-time
applicants are required to submit an Opinion of Counsel as described below. (An
Opinion of Counsel sample is available in Appendix C of this circular.) FTA also
retains the discretion to require any recipient to submit a legal opinion and other
supporting documentation.
(a) An Opinion of Counsel identifies the legal authority of the grant applicant, citing,
for example, state and local statutes, and states whether any significant legislation or
litigation is pending that may affect the legal status of the applicant. It is not
uncommon for legislation or litigation to be pending; its significance in terms of
legal capacity and in terms of ability to complete the project determines whether or
not it should be noted in the Opinion of Counsel. While the first Opinion of Counsel
sets forth the basis that gives the grant applicant the authority to apply for FTA
funding, the recipient will certify its authority to apply for subsequent grants in the
annual certification process. That affirmation appears on FTA’s website
at www.fta.dot.gov, on the page that lists the current year Certifications and
Assurances.
FTA expects the recipient to notify FTA of any change in local law, litigation,
conditions, or any other event that may significantly affect the recipient’s ability to

V–2

FTA C-5100
05/18/2015
carry out the project. Any significant change in status will require a new Opinion of
Counsel.
(b) The authority of those officials acting on behalf of a public body grant applicant
generally must be demonstrated by a resolution from the governing body of the
grant applicant, a statute, or an ordinance showing the grant applicant has authority
to file an official grant application, showing who has the authority to act on behalf
of the applicant, and supporting the application. A certified copy of the authorizing
resolution is required for all FTA recipients. A sample format of an authorizing
resolution is provided in Appendix C of this circular. The authorizing resolution
only has to be submitted prior to the grant applicant’s first application. For
subsequent grant applications, FTA will rely on the annual certifications and
assurances. The Designated Signature Authority submitted in the FTA electronic
award management system on the first application must agree with the Designated
Signature Authority on subsequent applications.
(2) Financial Capacity. Before FTA may award a grant for a Section 5339 project, FTA
must make a finding that the grant applicant has or will have the financial capacity to
carry out the project. Specifically, an applicant for Section 5339 funds must be able to
match and manage those funds, to cover cost overruns, to cover operating deficits
through long-term stable and reliable sources of revenue, and to maintain and operate
federally funded facilities and equipment. Financial capacity and proposed project
financing must be made evident. The source of local share must be identified and
assurances must be provided that adequate local funds will be available at the time
federal funds are drawn down. Financial capacity is also reviewed by FTA’s Financial
Management Oversight contractors as deemed necessary.
FTA Circular 7008.1, “Financial Capacity Policy,” defines the basis upon which FTA
will make determinations of a grant applicant’s financial capacity to receive a Section
5339 grant. The circular refers to two aspects of financial capacity: general financial
condition of the transit operator and financial capability. The general financial condition
includes historical trends and current experience in financial factors affecting the ability
of the grant applicant to operate and maintain the transit system at present levels of
service. The information supporting an assessment of financial condition is usually
available in audited annual financial statements and other financial reports which
address working capital levels, cash balances, capital reserves, the presence and status
of depreciation accounts, long-term debt levels, trends in transit costs compared to
available revenues, and trends in relevant economic indicators.
Financial capability addresses the sufficiency, stability, and reliability of the grant
applicant’s revenue sources to meet future operating deficits and to meet future annual
capital and operating costs. Financial capability considers the nature of funds pledged to
support operating deficits and capital programs, and changes in forecast in fare and
nonfare revenues. Capital costs include replacement and rehabilitation of existing
equipment and facilities and new investments. Operating and maintenance costs include

FTA C-5100
05/18/2015

V–3

those for the present system and any increases caused by capital investment and service
expansion.
In considering financial capacity of the grant applicant, FTA takes into account the fact
that a financial analysis must be undertaken and a financial plan must be developed
before programming a project into the transportation improvement plan (TIP). That
analysis, plan, and subsequent inclusion of the project in the TIP reflect the two aspects
FTA considers in determining the grant applicant’s financial capacity: the financial plan
must demonstrate that TIP projects can be carried out while the existing transportation
system is being adequately operated and maintained (financial condition); and only
projects for which funds can reasonably be expected to be available may be included in
the TIP (financial capability).
FTA assesses financial capacity of a Section 5339 grant applicant when FTA approves
the statewide transportation improvement plan (STIP) and again when FTA approves
projects for Section 5339 funds. The level of detail of the financial capacity assessment
will be consistent with the size of the transit system being considered and the scale of
the capital investments being proposed. Depending on the scale of the proposal, FTA
may ask the applicant for supporting information such as that contained in the TIP,
including: short-range transit plans, capital budgets, and reports on financial operations
such as periodic financial statements or single audit reports.
(3) Technical Capacity. According to 49 U.S.C. 5307(c)(1)(A) before FTA may award a
Section 5339 grant, FTA must make a finding that the grant applicant has or will have
the technical capacity to carry out the project. Technical capacity involves the
capability of the grant applicant to properly carry out and manage federal grants. In
making this finding, FTA generally relies on its experience with the grant applicant. A
first-time grant applicant for a Section 5339 grant must demonstrate that it can carry out
the project described in the grant application in accordance with the requirements of the
grant agreement, and with all applicable laws and regulations, using sound management
practices. Thus, a certification that the recipient will comply with all requirements
applicable to its grant application and to the grant agreement, when awarded, is
required. Guidelines for management practices can be found in the current version of
the FTA Circular 5010, “Grant Management Requirements.”
(4) Satisfactory Continuing Control. According to 49 U.S.C. 5307(c)(1)(B) a recipient must
annually certify that it “has or will have satisfactory continuing control over the use of
equipment and facilities” through operation, lease, or otherwise.
An FTA recipient must maintain control over federally funded property by ensuring the
grantee uses it in public transportation service and disposes of it according to federal
requirements. If the recipient leases federally funded property to another party, the lease
must provide that the recipient maintains satisfactory continuing control over the use of
that property. FTA determines control over FTA-funded facilities and equipment in two
areas: real property (land) and facilities; and personal property (equipment and rolling
stock, both revenue and nonrevenue). For more information regarding the disposing of

V–4

FTA C-5100
05/18/2015
property, and for safeguards against loss, theft, or damage, see FTA Circular 5010.1,
“Grant Management Requirements.”
(5) Maintenance. According to 49 U.S.C. 5307(c)(1)(C), a recipient must certify it will
maintain its federally assisted facilities and equipment.
The recipient must keep equipment and facilities acquired with federal assistance in
good operating order. This includes maintenance of rolling stock (revenue and
nonrevenue), machinery and equipment, and facilities. Every recipient of Section 5339
program funds must have in its files a maintenance plan. The maintenance plan should
identify the goals and objectives of a maintenance program, which may include, for
example, vehicle life, frequency of road calls, and maintenance costs compared to total
operating costs. The maintenance plan should establish the means by which the grantee
will meet such goals and objectives. Additional guidance is available on FTA’s State of
Good Repair and Asset Management website (http://www.fta.dot.gov/13248.html).
(6) Fares Charged to Seniors and Persons with Disabilities During Nonpeak Hours.
According to 49 U.S.C. 5307(c)(1)(D), a recipient must certify that the fares charged to
elderly individuals and individuals with disabilities, or individuals presenting a
Medicare card during nonpeak hours for fixed-route transportation, are not more than
50 percent of the peak hour fare, regardless of whether the service is provided by the
recipient or by another entity under contract, lease, or other arrangement. Because a
Medicare card does not constitute proof of an individual’s identity, it is reasonable for a
transit agency to request confirmation of the individual’s identity, either through
secondary photo identification, or by using a photographic identification card issued by
the transit agency. It is also reasonable for a transit agency to verify the validity of the
Medicare card being presented, and to facilitate the half-fare application process, a
transit agency may request that the applicant validate the status of the card at the time
the half-fare application is presented.
(7) Use of Competitive Procurements. According to 49 U.S.C. 5307(c)(1)(E), a recipient
must follow procurement requirements specified under 49 U.S.C. 5323 and 49 U.S.C.
5325. This includes the requirements that recipients utilize a competitive procurement
process, comply with applicable Buy America laws, and do not use a procurement that
uses exclusionary or discriminatory specifications.
Any recipient failing to provide this certification or that is found by FTA to have
procurement practices and procurement systems that do not comply with federal laws,
regulations, and directives governing federally financed procurements may be
determined ineligible for award of federal assistance.
There is a link between a recipient’s certification that its procurement procedures follow
federal requirements and a positive finding by FTA concerning the applicant or
recipient’s technical capacity to administer and manage a grant properly. FTA Circular
4220.1, “Third Party Contracting Guidance,” sets forth the requirements and procedures
applicable to third party contracts. A third party contract refers to any purchase order or

FTA C-5100
05/18/2015

V–5

contract awarded by a recipient to a vendor or contractor using federal financial
assistance awarded by FTA. FTA Circular 4220.1 contains guidelines for the general
procurement requirements of the DOT Common Grant Rule, 49 CFR part 18, and also
includes specific statutory procurement provisions required by FTA’s enabling
legislation and other special concerns to FTA. Note that both the Common Grant Rule
and FTA Circular 4220.1 prohibit state or local preference provisions in procurements,
except in certain restricted circumstances.
Section 5323(h)(2) prohibits the use of FTA grant funds to support exclusionary or
discriminatory specifications, and Section 5323(m) provides specific preaward and
post-delivery provisions for procuring rolling stock.
In addition to procurement and audit provisions that apply to architectural, engineering,
and related services, 49 U.S.C. 5325 includes provisions affecting third party
procurements, including the general requirements for competition and prohibitions on
the use of exclusionary or discriminatory specifications, requirements for award to other
than low bidders, requirements for awards to responsible contractors, special rolling
stock limitations, contract term limited to five years, access of federal officials and the
comptroller general to project records, authority for design-build projects, and an
express federal preemption of any state law requiring bus purchases from in-state
dealers.
FTA’s Best Practices Procurement Manual
at http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing_6037.
html provides another useful source of procurement information.
(8) Domestic Preference for U.S. Property—Buy America. Pursuant to 49 U.S.C.
5307(d)(1)(E), grant applicants and subrecipients must certify that they will comply
with applicable Buy America laws as set forth under 49 U.S.C. 5323(j) in carrying out a
procurement. FTA’s Buy America requirements apply to all third party procurements
funded by FTA. These requirements, published at 49 CFR part 661, are different from
the federal “Buy American” regulations, published in the Federal Acquisition
Regulation at 48 CFR 25.1 and 25.2, which apply to direct federal procurements. FTA
strongly recommends that the recipient review FTA’s Buy America regulations before
undertaking any procurement to ensure compliance with the requirements applicable at
the time the recipient will undertake the procurement. Additional information is
available on the FTA Buy America website (http://www.fta.dot.gov/buyamerica).
(a) General Requirement. In compliance with 49 U.S.C. 5323(j) and FTA’s
implementing regulation at 49 CFR part 661, no funds may be obligated by FTA for
a grantee project unless all iron, steel, and manufactured products used in the
project are produced in the United States. FTA may waive this requirement in
certain circumstances, as discussed below.
(b) Steel and Iron. All steel and iron manufacturing processes must take place in the
United States, except metallurgical processes involving refinement of steel

V–6

FTA C-5100
05/18/2015
additives. The steel and iron requirements apply to all construction materials made
primarily of steel or iron and used in maintenance facilities, rail lines, and bridges.
These items include, but are not limited to, structural steel or iron, steel or iron
beams and columns, running rail, and contact rail. These requirements do not apply
to steel or iron used as components or subcomponents of other manufactured
products or rolling stock.
(c) Manufactured Products. For manufactured products used in an FTA-funded project,
all of the manufacturing processes for the product must take place in the United
States, and all components of the product must be of U.S. origin (49 CFR 661.5(d)).
(d) Rolling Stock. All buses and rolling stock (including train control, communication,
and traction equipment) acquired with FTA funds must consist of at least 60 percent
domestic components by cost and final assembly must take place in the United
States (49 CFR 661.11).
(e) Waivers. FTA may issue a waiver from Buy America requirements on one of four
grounds:
1. if the FTA administrator determines a waiver is in the public interest;
2. if no responsive or responsible bid offers a product manufactured in the United
States;
3. when U.S. manufacturers do not produce products in a sufficient and reasonably
available amount or of a satisfactory quality; or
4. when including domestic material will increase the cost of the overall project by
more than 25 percent (49 CFR 661.7).
(f) Special Waiver for Small Purchases. FTA has issued a general public interest
waiver that exempts “small purchases” from Buy America regulations, which
incorporated by reference a provision from DOT’s Common Grant Rule (49 CFR
18.36(d)) that set that threshold at $100,000 or less. This threshold continues to
apply for all grants obligated on or before December 25, 2014. On December 26,
2014, however, DOT’s Common Grant Rule in 49 CFR Part 18 was replaced with a
new regulation, 2 CFR Part 1201, which incorporates by reference OMB’s Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance) (2 CFR Part 200), and contains a higher threshold for
simplified acquisitions.
Therefore, for grants obligated on or after December 26, 2014, the threshold is
raised to match the simplified acquisition threshold set by OMB’s Uniform
Guidance at 2 CFR 200.88, which incorporates by reference the Federal Acquisition
Regulation at 48 CFR subpart 2.1 (definitions), and currently is set at $150,000.
This amount will be adjusted periodically for inflation. FTA will continue to base
the exemption on the total amount of the contract and not on the individual price of

FTA C-5100
05/18/2015

V–7
items being purchased. For example, if a recipient purchases ten items costing
$20,000 each under a single purchase order, the $200,000 contract would make the
procurement subject to Buy America Requirements (49 CFR 661.7).

(g) Regional Offices Available to Assist. FTA recognizes that Buy America regulations
may not address each issue that may arise in the course of a specific acquisition. It
is not unusual for an acquisition to involve specific circumstances requiring
interpretations of the regulations. For these reasons, recipients should submit Buy
America questions or issues not addressed by the regulation to the appropriate FTA
regional office.
(h) Responsibilities. Under 49 CFR 661.13, a recipient’s responsibilities are:
1. to adhere to the Buy America clause in its grant agreement with FTA;
2. to include in its bid specification for procurement within the scope of FTA’s
regulations an appropriate notice of the Buy America provision. Such
specifications must require, as a condition of responsiveness, that the bidder or
offeror submit with the bid a completed Buy America certificate in accordance
with 49 CFR 661.6 or 661.12, as appropriate; and
3. to ensure bidders comply with its original certifications. A bidder or offeror
certifying that it will comply with the applicable Buy America requirements
may not change its original certification or apply for a waiver of Buy America
requirements once the recipient has unsealed a bid. However, 49 CFR 661.13(b)
allows a bidder or an offeror to correct an inadvertent error in a certification of
noncompliance after a bid has been unsealed, with the burden of establishing the
inadvertent error falling upon the bidder.
(i) Public Participation. According to 49 U.S.C. 5307(c)(1)(F), a recipient must certify
that it has complied with the public participation requirements of 49 U.S.C. 5307(b).
Chapter IV, Section 6, “Program of Projects and Public Participation Requirements”
of this circular discusses this requirement.
(j) Availability of Local Funds. According to 49 U.S.C. 5307(c)(1)(G), a recipient must
certify that the required local funds are available to carry out the project. See
Chapter III of this circular for additional information on local share.
(k) Compliance with Planning Requirements. According to 49 U.S.C. 5307(c)(1)(H), a
recipient requesting Section 5339 program assistance must certify that it will
comply with the planning requirements of 49 U.S.C. 5303–5306. Further detail on
planning requirements may be found in FTA Circular 8100.1, “Program Guidance
for Metropolitan Planning and State Planning and Research Program Grants.”
(l) Public Comment on Fare and Service Changes. According to 49 U.S.C.
5307(c)(1)(I), the recipient must certify that it has a locally developed process to

V–8

FTA C-5100
05/18/2015
solicit and consider public comments before raising a fare or implementing a major
reduction of public transportation service.
The recipient is expected to have a written policy that describes the public comment
process on increases in the basic fare structure and on major service reductions. The
recipient is responsible for defining a major service reduction. The policy should
provide an opportunity for a public hearing or public meeting for any fare increase
or major service reduction and should describe how the recipient will conduct such
meetings and how the recipient will consider the results of such meetings in the
process of changing fares and service. A public meeting is not mandatory; however,
an opportunity for a public meeting in order to solicit comment must be provided.
During a triennial review, the recipient should be able to provide evidence that
public comments were considered.

2. CERTIFICATION PROCEDURES. Before FTA may award federal funding, the applicant
must provide to FTA all certifications and assurances required by federal laws and regulations.
Near the beginning of each federal fiscal year, FTA publishes the certifications in the Federal
Register, highlighting any changes or additions from the previous year. FTA sometimes
publishes the certifications and assurances on the same date the formula apportionments are
published.
a. Action Required. The authorized representative of the recipient and the recipient’s attorney
must make the requisite certifications in FTA’s Electronic Grants Management System by:
(1) attesting to the certifications and assurances electronically with a personal identification
number (PIN); and
(2) selecting electronically each assurance or certification category that will apply to the
applicant’s grants for the fiscal year; or
(3) selecting instead a “Select all” field that signifies the grant applicant will comply with
all categories of certifications and assurances that apply to it or its projects.
FTA requires a current attorney’s affirmation of the recipient’s legal authority to certify
compliance with that fiscal year’s FTA funding assistance. FTA will not accept the
attorney’s affirmation from a previous year.
b. Timing. FTA expects to receive the certifications and assurances electronically from each
recipient that has an open grant:
(1) within ninety days from the date of publication of the certifications and assurances; or
(2) with the first grant application of the fiscal year, whichever comes first.
Absent information to the contrary, certifications and assurances, which remain valid for
one year or until FTA publishes the next version, apply to all open grants.

FTA C-5100
05/18/2015

V–9

FTA encourages grant applicants and recipients to contact the appropriate FTA regional
office for more information about these requirements. Some requirements call for extensive
planning that the applicant should address before submitting a grant application.
3. FTA ELECTRONIC AWARD MANAGEMENT SYSTEM. FTA provides a streamlined
electronic interface between grantees and FTA that allows complete electronic grant
application submission, review, approval, and management of all grants. Among other things,
grantees apply for grants, inquire about the status of grants, file the required federal financial
report (FFR) and milestone progress reports (MPR), and submit annual Certifications and
Assurances in this system. Note: States are required to report on an annual basis for milestone
progress reports and federal financial reports with the exception of construction projects which
require quarterly reports. Large urbanized areas (UZAs) are to submit quarterly FFR and MPR
reports regardless of project type.
The User Guide can be found at FTA’s website in the “Grants and Financing” section under
“Apply for and Manage Grants.” The U.S. Department of Labor (DOL) receives requests
electronically for Transit Employee Protective Certification for projects. DOL will
electronically issue the Public Transportation Employee Protective Certifications, entering the
certification date and attaching the certification letter into the electronic management system.
This system interfaces directly with other systems such as Grants.Gov and the Electronic
Clearing House Operations (ECHO) system. ECHO is an FTA Web-based application that
processes FTA recipients’ requests for payment. To access the electronic management system,
a new applicant must complete the Grantee/Recipient User Access Request form for each user
and submit that form to the appropriate FTA regional office. The website containing
information about how to apply for a grant
is: http://www.fta.dot.gov/funding/grants_financing_36.html.
4. SYSTEM FOR AWARD MANAGEMENT REQUIREMENTS. The System for Award
Management (SAM) is a free website that consolidates federal procurement systems and the
Catalog of Federal Domestic Assistance (https://www.uscontractorregistration.com/) . On July
30, 2012, the Central Contractor Registration (CCR), FedReg, and the Excluded Parties List
System (EPLS) were migrated into SAM.
Any organization applying for financial assistance from the federal government must register in
SAM and keep its registration current until it submits its final financial report pursuant to the
award agreement from FTA or receives its final payment under the project, whichever is later.
The recipient must review and update its information in SAM at least annually after the initial
registration, and more frequently if required by changes in its information or another provision
of a federal or federally assisted agreement, law, regulation, or regulatory guidance.
5. DATA UNIVERSAL NUMBERING SYSTEM (DUNS) REGISTRATION
REQUIREMENTS. Any organization applying for a grant or cooperative agreement from the
federal government must have a DUNS number. This is a nine-digit identification number that
provides a unique identification for single business entities. Grant applicants that currently do
not have a DUNS number can obtain one for free from Dun and Bradstreet (www.dnb.com). It
takes about five weeks to receive a DUNS number after the information requested is imputed in

V–10

FTA C-5100
05/18/2015

the “Instructions on How to Obtain a DUNS Number.” As soon as the DUNS number is
received, the applicant must inform an FTA regional office and update the grantee profile to
include the number.
6. DUNS REQUIRMENTS FOR SUBRECIPIENTS. If it is authorized to make subawards under
its agreement with FTA, the recipient must notify potential subrecipients that no entity may
receive a subaward from the recipient unless the entity has provided its DUNS number to the
recipient. The recipient must not make any subaward to an entity unless the entity has provided
its DUNS number to the recipient.
7. ELECTRONIC CLEARING HOUSE OPERATION (ECHO) REQUIREMENTS. Grantees are
required to establish an ECHO control number (ECN) before FTA is able to disburse funds to
the grantee. Department of Treasury regulations, 31 CFR part 205, govern payment to
recipients for financing operations under federal assistance and other programs. These
regulations require that payment to a recipient be limited to the minimum amounts needed and
timed so as to be in accord only with the actual, immediate cash requirements of the recipient
in carrying out the approved project. For further information regarding cash management
procedures, refer to the FTA “ECHO-Web System Users Manual for Recipients”
at: http://www.fta.dot.gov/documents/ECHOWebGranteeUserManual.pdf.
8. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA)
REQUIREMENTS. FTA’s recipients must report the information about each first tier subaward
over $25,000 (funds passed through to other public agencies or private nonprofit organizations)
by the end of the month following the month the direct recipient makes any subaward or
obligation (not the month after FTA awarded the direct grant). For example, if FTA awarded
the grant in November, and the prime recipient did not sign subrecipient agreements until
February, the FTA grantee would have until March 31 to report the subaward into FSRS. Once
the grantee submits an initial report, the grantee can revise it later to add additional subawards
as they are made, or to change data previously submitted to reflect adjustments in subawards.
a. No report is required until the month after the grantee makes a subaward. For example, if a
state DOT received a Section 5339 grant in November and listed sixteen subrecipients in
the program of projects but does not consider the subawards to be made until each
subrecipient signs a letter of agreement, the state would not have to report any subawards in
December, but would report them by the end of the month after the subrecipient signs the
agreement. On the other hand, if the state DOT has a standing agreement with subrecipients
and considers the subawards to be made at the time of the FTA grant award, the report
would be due in FSRS by the end of the month after FTA obligated the grant to the DOT. If
the state allowed subrecipients to use preaward authority, the deadline would be based on
the date of the FTA obligation, since FSRS cannot accept subaward reports before the
federal obligation is recorded in the system.
b. The required data elements in FSRS for each first tier subaward over $25,000 :
(1) Name of entity receiving subaward
(2) DBA name

FTA C-5100
05/18/2015

V–11

(3) DUNS of the entity and its parent and DUNS+4
(4) Amount of subaward
(5) Subaward number (Note: assigned by recipient)
(6) CFDA number (Note: The same CFDA associated with the FTA award)
(7) Place of performance (including congressional district)
(8) Total compensation and names of top five executives, if required (Note: Not typically
required, with thresholds of $25 million and 80 percent of total revenue coming from
federal funds)
(9) Award title descriptive of the purpose of the funding action
(10)

Location of the entity (including congressional district)

c. The amount that is to be reported for each subrecipient is the amount of the total subaward,
not payments to date. Payment/drawdown information is not included in the data fields
requested.
d. After the recipient reports the subaward data in FSRS, the information will be published
with the original direct award information on http://www.usaspending.gov.
e. Information and training materials about FFATA subaward reporting and FSRS are posted
on www.USASpending.Gov/news. To receive new information on changes and updates to
USASpending.gov as soon as it becomes available, subscribe by visiting
http://www.usaspending.gov/ and adding your email address under the “What’s New”
Section. User manuals and data dictionaries are available on http://www.fsrs.gov. Grantees
should direct technical questions about the reporting website to the FSRS help desk. FTA
regional staff is available to help with FTA grant award information and requirements.
f. Subrecipients. So that FTA can comply with the Federal Funding Accountability and
Transparency Act (FFATA) of 2006, Pub. L. 109–282, enacted September 26, 2006, the
grant recipient must provide FTA with the following information for any subrecipient: the
name of the entity receiving the award, the amount of the award, the location of the entity
receiving the award, and the primary location of performance under the award, including
the city, state, and congressional district. The grant recipient may choose to submit this
information as a separate attachment in the FTA electronic award management system or
include the information in the program of projects (POP).
9. NATIONAL TRANSIT DATABASE (NTD) REPORTING. The NTD was established by
Congress to be the nation’s primary source for information and statistics on the transit systems
of the United States. NTD data is used to support numerous DOT programs and to “help meet
the needs of individual public transportation systems, the United States Government, State and
local governments, and the public for information on which to base public transportation
service planning” (49 U.S.C. 5335). Recipients (including subrecipients and contractors) of
Section 5339 program funds are required by statute to submit data to the NTD.

V–12

FTA C-5100
05/18/2015

FTA’s implementing regulation for the NTD can be found at 49 CFR part 630. A recipient of
FTA grants that is required to report to the NTD must provide a complete report to the NTD of
all transit operations, regardless of whether or not those operations are funded in whole or part
by FTA. Financial information reported to the NTD must be reported in accordance with the
Uniform System of Accounts (USOA). The complete reporting requirements for the NTD,
along with information on due dates, extensions, and waivers can be found in the current
versions of the NTD Reporting Manuals. The NTD regulation, the USOA, and the most recent
versions of the NTD Reporting Manuals can be found on the NTD website
at http://www.ntdprogram.gov/.
a. Annual Report. Recipients or beneficiaries of Section 5339 grants must annually report
financial and nonfinancial data in accordance with the USOA as well as other data on
operations, organizational relationships, available resources, and capital assets. The NTD
Annual Manual, published by FTA each year, contains the specific reporting requirements,
detailed reporting instructions and information on due dates, waivers, and extensions.
b. Monthly Report. Recipients or beneficiaries of Section 5339 grants are required to file
monthly reports on transit operations to the NTD. These monthly reports include
information on unlinked passenger trips, vehicle revenue miles, vehicle revenue hours,
vehicles operated in maximum service, and regular service days for each month. The NTD
Monthly Manual, published by FTA each year, contains the specific reporting
requirements, detailed reporting instructions, and information on due dates, waivers, and
extensions.
c. Waiver. Under certain circumstances, described in NTD Reporting Manuals, grant
recipients may apply for reduced NTD reporting requirements. Under a Small Systems
Waiver, grantees with fewer than thirty vehicles in maximum (peak) service do not have to
report some data items. There are waivers of other data reporting requirements for
planning/capital only reporters, reporters that have experienced natural disasters, and for
reporters that are not able to generate specific data elements.

This page intentionally left blank

FTA C-5100
05/18/2015

VI–1
CHAPTER VI
STATE AND PROGRAM MANAGEMENT PLANS

1. GENERAL. The State Management Plan (SMP) is a document that describes the state’s
policies and procedures for administering FTA’s Section 5339 program. The Program
Management Plan (PMP) is a document that describes the designated recipient’s policies and
procedures for administering Federal Transit Administration’s (FTA) Section 5339 program in
a large urbanized area (UZA). A PMP may not be necessary if there is only one designated
recipient. The requirements for the PMP are the same as those for the SMP with exception that
the PMP is developed by designated recipients in large UZAs whereas the SMP is developed
by the state. All recipients may amend an existing or approved SMP/PMP or create a standalone section in order to meet the requirement for these documents.
a. Each recipient, whether a state or a designated recipient in a large UZA, is required to have
an approved SMP/PMP on file with the appropriate FTA regional office and to update it
regularly to incorporate any changes in program management or new requirements. The
recipient shall provide an opportunity for review by stakeholders when it develops a new
plan or significantly revises an existing plan. Certain contents of the SMP/PMP, such as
project selection criteria, should be coordinated with the statewide transportation plan.
b. At the state level, the designated recipient may include the required SMP for the Section
5339 program in a single document. Where designated recipients have multiple population
areas for which it serves (e.g., the state is the designated recipient for a large UZA[s] and
areas under 200,000 in population), the designated recipient may choose to have a single
management plan, provided it adequately addresses policies and procedures for each of the
areas and subrecipients from the respective population areas know which policies and
procedures are relevant to them.
c. All public documents developed under a grant from FTA must be prepared and submitted
in electronic format.
2. PURPOSE. The SMP/PMP is intended to facilitate both recipient management and FTA
oversight by documenting the state’s and designated recipient’s procedures and policies for
administering the Section 5339 program. The SMP/PMP should be a document that is useful to
the state, designated recipient, and subrecipients, as well as to FTA. At a minimum, this
document must include the recipient’s program objectives, policies, procedures, and
administrative requirements, in a form readily accessible to potential subrecipients, recipient
staff, FTA, and the public. The primary purposes of the SMP/PMP are to serve as the basis for
FTA to perform recipient-level management reviews of the program, and to provide public
information on the recipient’s administration of the Section 5339 program. It may also be used
internally by the recipient as a program guide for local project applicants. If the recipient has
other relevant documentation that provides the same information requested for the SMP/PMP,
such as an annual application instructions manual, it may be included by reference, as an
attachment.

VI–2

FTA C-5100
05/18/2015

3. MANAGEMENT PLAN REVIEWS. FTA conducts oversight reviews to examine each
designated recipient’s management procedures, and the relationship of the procedures to its
management plan. When a state management or triennial review is scheduled, FTA and its
contractors examine the SMP or PMP on file as part of a desk review at the regional office to
determine whether the procedures in the SMP/PMP satisfy current requirements. At the site
visit, the reviewers document whether or not the designated recipient is following its own
stated procedures. Review findings relating to the SMP/PMP might include recommendations
that the designated recipient revise the SMP/PMP to reflect its actual procedures, or that it
change its procedures and document them in revisions to the SMP/PMP.
4. MANAGEMENT PLAN CONTENT. While there is no prescribed format for the SMP/PMP,
the plan should address the following topics and provide the information as requested for each
topic below.
a. Program Goals and Objectives. Describe the philosophy and policy underlying the
recipient’s management of the Section 5339 program. Include a description of any process
that exists for establishing long-term goals for replacing buses, bus equipment, and bus
facilities for grant recipients.
b. Roles and Responsibilities. Specify the agencies designated to administer the Section 5339
Program. Explain the respective roles and responsibilities of the recipients and their
subdivisions, other recipient agencies or review boards, local governments, private
providers, local applicants, and other involved parties.
c. Coordination. Describe how the recipient coordinates with other agencies at the state or
designated recipient level and encourages and enhances coordination at the project level.
This could include a description of any recipient-level coordinating mechanisms,
legislation, review boards, and state or designated recipient policies that encourage or
mandate coordination at the local level.
d. Eligible Subrecipients. Describe which entities are eligible to apply for funds, and describe
any recipient eligibility requirements that are more restrictive than federal eligibility.
e. Local Share and Local Funding Requirements. Describe any recipient policies on provision
of local matching share. Include a description of any programs which provide matching
funds for Section 5339.
f. Project Selection Criteria and Method of Distributing Funds. The National Distribution
funds may be transferred to the Section 5307/5311(c) programs or be distributed by the
state using a process of their choosing. The state has the flexibility to allocate funding
amongst small UZAs using a process of their choosing. A competitive selection process is
not required; whether or not the recipient engages in a competitive selection process, the
recipient should describe in its SMP/PMP the criteria for selecting projects and distributing
funds among various applicants. Whether the recipient uses a formula for allocation,
imposes its own limitations on use of the funds, or uses an entirely discretionary selection
process, the plan should explain the policy rationale and the methods used.

FTA C-5100
05/18/2015

VI–3

g. Annual Program of Projects Development and Approval Process. Describe the recipient’s
process and timetable for soliciting, reviewing, and approving applications for local
projects to be included in the state’s annual program of projects (POP) for Section 5339.
The SMP/PMP may include instructions to potential subrecipients on how to prepare local
project applications.
h. Transfer of Funds. The state has the flexibility to transfer funds between small UZAs based
on their own defined process. The national distribution funds may be transferred between
small UZAs, large UZAs, and rural areas. Describe any policy the state has for transferring
funds between rural, small UZAs and large UZAs, or to any area of the state if the state has
a statewide program for meeting the objectives of Section 5339.
i. Civil Rights. Describe how the recipient meets federal civil rights requirements and
monitors subrecipients to ensure compliance with the requirements of Title VI, Equal
Employment Opportunity (EEO), and Disadvantaged Business Enterprise (DBE). The
management plan must include the program-specific Title VI requirements detailed in
Chapter VI, “Other Provisions,” including the recipient’s efforts to assist minority
applicants and to include subrecipients serving significant minority populations. (Inclusion
in the SMP/PMP may satisfy certain requirements for one-time submissions in the civil
rights areas.)
j. Section 504 and ADA Reporting. Describe the recipient’s method for monitoring
subrecipients’ compliance with Section 504 and ADA regulations and for processing the
plans, reports, and certifications submitted to it under the provisions of those regulations.
k. Program Management. Describe how the recipient administers its program management
responsibilities in such areas as procurement, financial management, property management,
vehicle use, maintenance and disposition, accounting systems, audit, and closeout. In
addition, include any procedures for management or financial reviews and project
monitoring or on-site reviews. Describe any standards set by the recipient for matters such
as productivity, cost-effectiveness, or service standards. Detail any other reporting
requirements.
l. Other Provisions. Describe the process by which the recipient complies with other federal
requirements such as environmental protection, Buy America (see Chapter V) provisions,
preaward and post-delivery reviews, restrictions on lobbying, prohibition of exclusive
school transportation, and drug and alcohol testing, including the state’s procedures for
monitoring compliance by subrecipients.
5. MANAGEMENT PLAN REVISIONS. All recipients must have an SMP/PMP approved by
FTA on file with their FTA regional office. An approved SMP/PMP remains valid until FTA
approves a later plan submitted by the recipient or an FTA management review results in a
specific request to the recipient by FTA for a revised SMP/PMP, or FTA announces significant
new program documentation requirements. FTA strongly encourages the recipient to issue
timely revisions to the SMP/PMP, particularly when information helpful to minority applicants,
subrecipients, and third party contractors is involved. When the recipient proposes significant

VI–4

FTA C-5100
05/18/2015

revisions to the SMP/PMP it should give an opportunity to comment at the minimum to
potential subrecipients of assistance, potential service providers, other state agencies and
representatives of other funding sources, and any relevant state associations and professional
organizations.
If revisions are substantive, but not pervasive, the recipient may submit changes and additions
in the form of page changes that can be approved by FTA and incorporated into the SMP/PMP
on file. If the recipient changes the SMP/PMP significantly, however, it should submit the
entire revised plan to FTA for approval. The recipient is responsible for ensuring that FTA has
a complete copy of the current SMP/PMP. The recipient may submit minor changes and
technical corrections to FTA to update the approved plan, without the need for additional FTA
approval. The recipient should reexamine the SMP/PMP to make sure it reflects current
requirements of this circular and revise the SMP/PMP by May 1, 2014.
6. EXISTING SMP/PMP. All recipients may amend an existing/approved SMP or PMP or create
a stand-alone section in order to meet the requirement for these documents.

FTA C-5100
05/18/2015

VI–5

This page intentionally left blank

FTA C-5100
05/18/2015

VII–1
CHAPTER VII
OTHER PROVISIONS

1. INTRODUCTION. In addition to the program-specific requirements, Federal Transit
Administration (FTA) recipients are held to a number of FTA-specific and other federal
requirements. This chapter provides a summarized, alphabetical listing of those requirements
and provides citations to the actual statutory or regulatory text. If there is a conflict between the
summary information provided in this chapter and the statute or regulation, the language of the
statute or regulation controls. This circular should be used in conjunction with FTA’s “Master
Agreement” and the current fiscal year “Certifications and Assurances” that recipients must
sign annually (by using the FTA electronic award management system) to establish or renew
their funding relationship with FTA.
The Master Agreement and the Certifications and Assurances represent the recipients’ legal
affirmation to abide by FTA and other federal requirements that are applicable to their grant
programs.
Some of the topics covered in the Master Agreement and the Certifications and Assurances are
summarized throughout this chapter, as a reminder to recipients of their obligations to FTA.
More information about individual requirements can be found in the Master Agreement, the
Certifications and Assurances on the FTA public website (www.fta.dot.gov), the FTA
electronic award management system’s website (http://ftateamweb.fta.dot.gov), and in the
references provided throughout this chapter.
Recipients are encouraged to contact the appropriate FTA regional office for more details about
these requirements.
2. CHARTER BUS SERVICES. Title 49 U.S.C. 5323(d) limits charter service provided by
federally assisted public transportation operators. FTA regulations specify these limitations in
49 CFR part 604—Charter Service, amended effective April 30, 2008 (73 FR 2326, Jan.14,
2008). Each recipient must enter into an agreement with FTA that the recipient will not engage
in charter service unless otherwise permitted by FTA charter service regulations. FTA includes
that agreement in its annual publication of Certifications and Assurances. Charter service is
defined based on whether a third party requests the service or whether the transit agency
initiates the service. If a third party requests service, FTA will utilize four characteristics of
charter service to determine whether the proposed service meets the definition of charter. If a
transit agency initiates the service, FTA will look at whether the transit agency also charges a
premium fare or accepts a subsidy from a third party.
In addition, the charter rule established a new electronic database. Interested private operators
must register at the FTA charter bus service website
(http://www.fta.dot.gov/legislation_law/12922.html) in order to receive notice from transit
agencies regarding potential charter trips. Private operators may register their geographic area
by zip code. When a transit agency receives a request for charter service that does not fit within

VII–2

FTA C-5100
05/18/2015

one of the other exceptions outlined in the rule, and it is interested in performing the service, it
must send notice to all private operators registered in the recipient’s geographic service area.
The notice sent by the transit agency must conform strictly to the requirements of the rule, as
additional information may void the notice and may subject the transit agency to a complaint
from registered charter providers. The rule also provides for a detailed complaint process for
addressing potentially frivolous complaint filings, in addition to complaints against transit
agencies that violate the regulation, and a complaint process for removing private registered
providers if they are abusing the process. The rule contains hearing procedures, appeal
procedures, and several appendices to assist transit agencies with compliance, including a
penalty matrix and a series of frequently asked questions and answers.
3. CIVIL RIGHTS. The recipient agrees to comply with all applicable civil rights statutes and
implementing regulations including, but not limited to, the following:
a. Nondiscrimination in Federal Public Transportation Programs. The recipient agrees to
comply, and assures the compliance of each third party contractor at any tier and each
subrecipient at any tier under the project, with the provisions of 49 U.S.C. 5332. These
provisions prohibit discrimination on the basis of race, color, creed, national origin, sex, or
age, and prohibit discrimination in employment or business opportunity.
b. Nondiscrimination on the Basis of Disability. The recipient agrees to comply, and assures
the compliance of each third party contractor and each subrecipient at any tier of the
project, with the applicable laws and regulations, discussed below, for nondiscrimination on
the basis of disability.
(1) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), prohibits
discrimination on the basis of disability by recipients of federal financial assistance.
(2) The Americans with Disabilities Act (ADA), as amended (42 U.S.C. 12101 et seq.),
prohibits discrimination against qualified individuals with disabilities in all programs,
activities, and services of public entities, as well as imposes specific requirements on
public and private providers of public transportation.
(3) DOT regulations implementing Section 504 and the ADA include 49 CFR parts 27, 37,
38, and 39. Among other provisions, the regulations specify accessibility requirements
for the design and construction of new transportation facilities and vehicles; require that
vehicles acquired (with limited exceptions) be accessible to and usable by individuals
with disabilities, including individuals using wheelchairs; require public entities
(including private entities “standing in the shoes” of a public entity as a subrecipient or
under a contract or other arrangement) providing fixed-route service to provide
complementary paratransit service to individuals with disabilities who cannot use the
fixed-route service; and include service requirements intended to ensure that individuals
with disabilities are afforded equal opportunity to use transportation systems.
(4) Providers of fixed route service must generally utilize accessible vehicles. Private
entities may utilize nonaccessible vehicles if they can provide equivalent service in
terms of schedules and headways, in addition to the equivalent service requirements

FTA C-5100
05/18/2015

VII–3

described above for demand responsive service. Public entities must also provide
complementary paratransit service to fixed route service as defined in 49 CFR 37.121.
(5) Providers of demand responsive service must utilize accessible vehicles, as defined at
49 CFR 37.7 or meet the applicable equivalent service standard. For private and public
entities, the service must be equivalent in regard to schedules, response times,
geographic areas of service, hours and days of service, availability of information,
reservations capability, constraints on capacity or service availability, and restrictions
based on trip purpose.
(6) In addition, recipients of any FTA funds should be aware that they also have
responsibilities under Titles I, II, III, IV, and V of the ADA in the areas of employment,
public services, public accommodations, telecommunications, and other provisions,
many of which are subject to regulations issued by other federal agencies.
c. Nondiscrimination—Title VI. The recipient agrees to comply, and assures the compliance
of each third party contractor at any tier and each subrecipient at any tier of the project,
with all of the following requirements under Title VI of the Civil Rights Act of 1964:
(1) Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.),
provides that no person in the United States shall, on the grounds of race, color, or
national origin, be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity receiving federal financial
assistance.
(2) U.S. DOT regulations, “Nondiscrimination in Federally-Assisted Programs of the
Department of Transportation—Effectuation of Title VI of the Civil Rights Act of
1964,” 49 CFR part 21.
(3) FTA Circular 4702.1B “Title VI Requirements and Guidelines for Federal Transit
Administration Recipients.” This document provides FTA recipients and subrecipients
with guidance and instructions necessary to carry out DOT Title VI regulations (49
CFR part 21), DOT’s Order 5610.2 on Environmental Justice (62 FR 18377, Apr. 15,
1997), and DOT Policy Guidance Concerning Recipient’s Responsibilities to Limited
English Proficient (LEP) Persons (70 FR 74087, Dec. 14, 2005).
(4) U.S. DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English
Proficient (LEP) Persons (December 14, 2005). This Executive Order 13166 guidance
clarifies the responsibilities of recipients of federal financial assistance from DOT and
assists them in fulfilling their responsibilities to LEP persons, pursuant to Title VI of
the Civil Rights Act of 1964 and Executive Order 13166.
(5) FTA Circular 4703.1 “Environmental Justice Policy Guidance for Federal Transit
Administration Recipients.” This document provides FTA recipients and subrecipients
with guidance and instructions necessary to carry out DOT Order 5610.2, Actions to
Address Environmental Justice in Minority Populations and Low-Income Populations,
and Executive Order 12898 on Environmental Justice. The DOT order describes the

VII–4

FTA C-5100
05/18/2015
process that the office of the secretary of Transportation and each operating
administration will use to incorporate environmental justice principles into existing
programs, policies, and activities.
(6) U.S. DOT Order to Address Environmental Justice in Minority Populations and LowIncome Populations. DOT Order 5610.2 describes the process that the office of the
secretary of Transportation and each operating administration will use to incorporate
environmental justice principles (as embodied in Executive Order 12898 on
Environmental Justice) into existing programs, policies, and activities.

d. Equal Employment Opportunity. The recipient agrees to comply, and assures the
compliance of each third-party contractor and each subrecipient at any tier of the project,
with all equal employment opportunity (EEO) requirements of Title VII of the Civil Rights
Act of 1964, as amended, (42 U.S.C. 2000e et seq.), and with 49 U.S.C. 5332 and any
implementing regulations DOT may issue.
e. Nondiscrimination on the Basis of Sex. The recipient agrees to comply with all applicable
requirements of Title IX of the Education Amendments of 1972, as amended (20 U.S.C.
1681 et seq.), with DOT implementing regulations, “Nondiscrimination on the Basis of Sex
in Education Programs or Activities Receiving Federal Financial Assistance” (49 CFR part
25).
f. Nondiscrimination on the Basis of Age. The recipient agrees to comply with all applicable
requirements of the Age Discrimination Act of 1975, as amended (42 U.S.C. 6101 et seq.),
and Department of Health and Human Services’ (DHHS) implementing regulations,
“Nondiscrimination on the Basis of Age in Programs or Activities Receiving Federal
Financial Assistance” (45 CFR part 90), which prohibit discrimination against individuals
on the basis of age. In addition, the recipient agrees to comply with all applicable
requirements of the Age Discrimination in Employment Act (ADEA) (29 U.S.C. 621
through 634), and Equal Employment Opportunity Commission (EEOC) implementing
regulations, “Age Discrimination in Employment Act” (29 CFR part 1625), which prohibit
employment discrimination against individuals on the basis of age.
g. Disadvantaged Business Enterprise (DBE) Program. To the extent required by federal law,
regulation, or directive, the recipient agrees to take the following measures to facilitate
participation by DBEs:
(1) The recipient agrees and assures that it will comply with MAP-21 Section 1101(b) 23
U.S.C. 101, which directs the secretary of Transportation to expend not less than 10
percent of authorized federal funds with DBE’s. This 10 percent national goal is
aspirational and is used by the Department of Transportation to help monitor and
evaluate DBE participation in DOT-assisted contracting opportunities.
(2) The recipient agrees and assures that it will comply with DOT regulation, “Participation
by Disadvantaged Business Enterprises in Department of Transportation Financial
Assistance Programs,” 49 CFR part 26. Among other provisions, this regulation
requires certain recipients of DOT federal financial assistance, namely state and local

FTA C-5100
05/18/2015

VII–5

transportation agencies, to establish goals for the participation of disadvantaged
entrepreneurs and certify the eligibility of DBE firms to participate in their DOTassisted contracts.
(3) The recipient agrees and assures that it shall not discriminate on the basis of race, color,
sex, or national origin, in the award and performance of any third party contract, or
subagreement supported with federal assistance derived from DOT, or in the
administration of its DBE Program, and will comply with the requirements of 49 CFR
part 26. The recipient agrees to take all necessary and reasonable steps set forth in 49
CFR part 26 to ensure nondiscrimination in the award and administration of all third
party contracts and subagreements supported with federal assistance derived from DOT.
As required by 49 CFR part 26 and approved by DOT, the recipient’s DBE Program is
incorporated by reference and made part of the Grant Agreement or Cooperative
Agreement. The recipient agrees that implementation of this DBE Program is a legal
obligation, and that failure to carry out its terms shall be treated as a violation of the
Grant Agreement or Cooperative Agreement. Upon notification by DOT to the recipient
of a failure to implement its approved DBE Program, DOT may impose sanctions as
provided for under 49 CFR part 26 and may, in appropriate cases, refer the matter for
enforcement under 18 U.S.C. 1001, and/or the Program Fraud Civil Remedies Act (31
U.S.C. 3801 et seq.).
For further guidance, refer to the federal laws, regulations, and Executive Orders cited in
this chapter. FTA’s regional civil rights officers or headquarters civil rights staff will also
provide current guidance upon request.
4. CLEAN AIR ACT (CAA). The principal CAA requirement with which FTA-funded projects
must comply is the transportation conformity rule. The conformity requirements are contained
in an Environmental Protection Agency (EPA) regulation (40 CFR part 93), and they apply in
nonattainment and maintenance areas only—areas that, either: (1) currently violate one or more
of the National Ambient Air Quality Standards (NAAQSs) (nonattainment areas); or (2) once
violated the standards but have since been redesignated to attainment status by EPA
(maintenance areas). The transportation conformity process applies not only to federally funded
projects but also to long-range transportation plans and Transportation Improvement Programs
(TIPs). Determining conformity for transportation plans and TIPs is the responsibility of the
Metropolitan Planning Organization (MPO), and FHWA and FTA must review the conformity
determination and issue a statement saying that the plan and/or TIP conforms. Determining
conformity for individual projects is the project sponsor’s responsibility, and, again, FTA
and/or FHWA must review this determination and issue a statement, usually in the context of
the environmental decision document, saying that the project conforms.
The transportation conformity regulation reserves detailed air quality analysis for large projects
that have the potential to create new violations or make existing violations worse. There is also
a list of exempt highway and transit projects in the regulation that does not require any
analysis, which can be found at 40 CFR 93.126. Many transit projects are exempt from the
conformity requirements and can be processed expeditiously. Regardless of the type of project
being considered, early consultation with FTA is essential for proposed projects in

VII–6

FTA C-5100
05/18/2015

nonattainment and maintenance areas to establish what the requirements are and how best to
satisfy them. The planning and environmental staff working in FTA regional offices are the
best points of contact for air quality and transportation conformity issues.
5. COMMERCIAL DRIVER’S LICENSE (CDL). All drivers of motor vehicles designed or used
to transport more than fifteen passengers (including the driver) or of vehicles which have a
gross combination weight rating of 26,001 pounds or more must have a CDL. Mechanics that
drive the vehicles must also have a CDL.
6. DEBARMENT AND SUSPENSION. The purpose of the DOT governmentwide debarment
and suspension (nonprocurement) regulations (2 CFR part 1200) is to ensure that federal
assistance funds are not provided to anyone who has been debarred, suspended, determined
ineligible, or voluntarily excluded from participation in federally assisted transactions. The
U.S. General Services Administration’s (GSA) System for Award Management (SAM)
provides a single comprehensive list of individuals and firms excluded by federal government
agencies from receiving federal contracts or federally approved subcontracts and from certain
types of federal financial and nonfinancial assistance and benefits. GSA maintains a website,
at https://www.sam.gov, which is updated in real time as changes to the data occur.
a. DOT regulations, “Government-wide Debarment and Suspension (Nonprocurement),” 2
CFR part 1200, incorporating OMB’s debarment and suspension guidelines, 2 CFR part
180, requires disclosure of the status of persons and entities participating in:
(1) Third party contracts or subagreements of $25,000 or more at any tier;
(2) Third party contracts of any amount for federally required audit services (such as those
required under the Single Audit Act Amendments); and
(3) Third party contracts or subagreements requiring official DOT approval.
b. Both participants in third party contracts of any tier and subagreements of any tier are
expected to assure the status of persons participating therein.
c. The awarding party must verify that the person is not excluded or disqualified by:
(1) Checking the SAM list of excluded parties maintained by the GSA and available
at https://www.sam.gov (Note: Strongly recommended by FTA);
(2) Collecting a certification from the prospective awardee; or
(3) Adding a clause or condition to the third party contract or subagreement with that
awardee.
In addition, the recipient and awardees participating in lower tier transactions must extend
these requirements to their awardees. The prospective awardee in turn must notify the
recipient or third party contractor (person at the next higher tier) if it knows whether or not
it or any of its principals are presently excluded or disqualified under the these regulations.

FTA C-5100
05/18/2015

VII–7

7. DRUG AND ALCOHOL TESTING. In the interest of safety in transit operations, recipients of
funding from the Section 5339 Bus and Bus Facilities Program, 5307 Urbanized Area Formula
Program, 5309 Fixed Guideway Capital Investment Grants, 5311 Formula Grants for Rural
Program, and other programs as determined by the secretary are required by 49 U.S.C. 5331 to
establish Drug and Alcohol (D&A) Testing Programs.
The purpose of the testing program is to help prevent accidents, fatalities, and injuries resulting
from misuse of alcohol or the use of prohibited drugs by employees who perform safetysensitive functions. Recipients must also certify annually that they are in compliance with DOT
and FTA regulations concerning drug and alcohol testing (49 CFR parts 40 and 655,
respectively). Establishing a testing program is a condition of FTA funding. For noncompliance
with 49 CFR parts 40 and 655, MAP-21 allows the secretary to bar a recipient from receiving
FTA assistance in an amount that the secretary deems appropriate, which allows FTA more
flexibility in enforcing compliance. Where applicable, recipients of FTA funding may instead
be required to comply with Federal Railroad Administration (FRA) (49 CFR part 219 – for
commuter rail), Federal Motor Carrier Safety Administration (FMCSA) (49 CFR part 382 – for
contractors with mixed transit/motor carrier/school bus), and United States Coast Guard
(USCG) (46 CFR parts 4 and 16 – for ferryboat) regulations concerning drug and alcohol
programs.
FTA’s regulation (49 CFR part 655) applies to “employers,” and the term employer is defined
as “a recipient [of FTA funding] or other entity that provides [public] transportation service or
which performs a safety-sensitive function for such recipient or other entity.” The term
includes subrecipients, operators, and contractors. The direct recipient of FTA funding,
however, remains responsible to FTA both for carrying out the regulations and for ensuring
that any person or organization performing a safety-sensitive function on its behalf is in
compliance with FTA regulations with effective ongoing oversight. FTA’s regulation does not
apply to construction phases of funded projects. Contractors that supply newly manufactured
equipment are excluded, as are facility construction workers. The regulation applies to the
testing, start-up, and actual revenue operations of FTA-funded transit systems. Van pool
drivers, as volunteers and not employees of a transit system that do not receive remuneration
over their actual expenses, are exempt from testing. Also exempt are taxi operations for
paratransit transportation where the patron chooses the service through a user subsidy or
voucher and the service is not dispatched through the FTA recipient or subrecipient. In
addition, maintenance contractors for rural 5311 providers and providers in urbanized areas
with populations of less than 200,000 are exempt as well.
FTA’s regulation requires testing of employees who perform one or more of five transit safetysensitive functions, which are defined at 49 CFR 655.4. The regulation requires the following
six types of testing for illegal drug use and alcohol misuse: pre-employment (including transfer
from a non–safety-sensitive position to a safety-sensitive position, and removal from the
random pool for ninety days or more); reasonable suspicion; random; post-accident; return-toduty (after a violation); and follow-up (a minimum of six tests in twelve months after returning
to duty). Since an October 2010 amendment to 49 CFR part 40, return-to-duty and follow-up
tests are required to be directly observed.

VII–8

FTA C-5100
05/18/2015

FTA’s regulation requires each employer to establish and implement a substance abuse
prevention program consisting primarily of a testing program but with elements requiring
training and educating safety-sensitive employees. The regulation requires the development of
a detailed policy statement that must be distributed to all safety-sensitive employees and
employee organizations. In addition, 49 CFR part 655 Subpart D establishes prohibited alcohol
concentration levels and behavior, and employers are directed to take specific action on the
basis of the level of alcohol concentration.
Technical assistance materials and training information to help recipients implement the rules
are available at FTA’s website (http://www.fta.dot.gov/safetysecurity/12533.html) or through
contacting the FTA office of transit safety and oversight, FTA headquarters.
8. DRUG-FREE WORKPLACE. In accordance with the Drug-Free Workplace Act of 1988 (41
U.S.C. 701 et seq.), and 49 CFR part 32, each recipient is required to maintain a drug-free
workplace for all employees and to have an antidrug policy and awareness program. The
recipient must agree that it will provide a drug-free workplace and comply with all
requirements of 49 CFR part 32. These provisions apply only to FTA’s direct recipients and do
not extend to subrecipients.
The recipient is required to provide a written drug-free workplace policy statement notifying
employees that the unlawful manufacture, distribution, dispensing, possession, or use of a
controlled substance is prohibited in the workplace and stating specific actions that will be
taken for violations. The Department of Labor provides a drug-free workplace advisor to assist
users in developing tailored policy statements at the following
link: http://www.dol.gov/elaws/asp/drugfree/menu.htm. The ongoing drug-free awareness
program must inform employees about the dangers of drug abuse; about any available drug
counseling, rehabilitation, and employee assistance programs; about penalties that may be
imposed; and that employees are to be aware that the recipient operates a drug-free workplace.
An employee of an FTA recipient is required to report in writing any conviction for a violation
of a criminal drug statute occurring in the workplace, and the recipient/employer is required to
provide written notice to FTA within ten days of having received the notice. Within thirty days
of receiving the notice of a conviction, the recipient/employer must have taken appropriate
action against the employee or have required participation in a drug abuse assistance or
rehabilitation program.
Technical assistance materials and training information to help recipients implement the drugfree workplace and drug and alcohol testing rules are available on FTA’s website,
http://www.fta.dot.gov, or by contacting FTA’s office of safety and oversight, FTA
headquarters, 1200 New Jersey Ave. SE., Washington, DC 20590.
9. EMPLOYEE POLITICAL ACTIVITY. To the extent applicable, the recipient agrees to
comply with the provisions of the Hatch Act, 5 U.S.C. Sections 1501–1508, and Sections
7324–7326, and U.S. Office of Personnel Management regulations, “Political Activity of State
or Local Officers or Employees,” 5 CFR part 151. The Hatch Act limits the political activities
of state and local agencies and their officers and employees, whose principal employment

FTA C-5100
05/18/2015

VII–9

activities are financed in whole or part with federal funds including a federal grant, cooperative
agreement, or loan. Nevertheless, in accordance with 49 U.S.C. 5323(l)(2) and 23 U.S.C.
142(g), the Hatch Act does not apply to a nonsupervisory employee of a public transportation
system (or of other agencies or entities performing related functions) receiving FTA assistance
to whom the Hatch Act would otherwise apply.
10. ENERGY CONSERVATION. The recipient agrees to comply with applicable mandatory
energy efficiency standards and policies of applicable state energy conservation plans issued in
accordance with the Energy Policy and Conservation Act, as amended, 42 U.S.C. 6321 et seq.
The recipient, to the extent applicable, agrees to perform an energy assessment for any building
constructed, reconstructed, or modified with FTA assistance, as provided in FTA regulations,
“Requirements for Energy Assessments,” 49 part 622, subpart C. Only after the completion of
an energy assessment will FTA approve assistance for the construction, reconstruction, or
modification of buildings for which the recipient submits an application. An energy assessment
consists of an analysis of the total energy requirements of a building, within the scope of the
proposed construction activity and at a level commensurate with the project size and scope.
The energy assessment should consider: overall design of the facility or modification; materials
and techniques used in construction or rehabilitation; special or innovative conservation
features that may be used; fuel requirements for heating, cooling, and operations essential to
the function of the structure projected over the life of the facility and including projected costs
of this fuel; and the kind of energy the recipient will use.
11. ENVIRONMENTAL REVIEWS. All projects seeking FTA financial assistance require
compliance with the National Environmental Policy Act (NEPA) Implementing Regulations
(40 CFR § 1500-1508), FHWA and FTA’s Environmental Impact and Related Procedures (23
CFR § 771), Efficient Environmental Reviews for Project Decisionmaking (23 U.S.C. § 139),
and numerous other environmental laws, regulations, and orders such as Section 106 of the
National Historic Preservation Act (36 CFR part 800), the Clean Water Act, and the
Endangered Species Act. Project sponsors should consult with the FTA regional office early in
project development to identify the appropriate class of action (categorical exclusion,
environmental assessment, or environmental impact statement) for the NEPA review and any
other environmental requirements. Project sponsors should not move forward with any steps to
develop the project that would preclude the fair consideration of alternatives (e.g., final design
and construction) until FTA concludes the NEPA process by issuing a record of decision
(ROD), finding of no significant impact (FONSI), or a categorical exclusion (CE). Property
acquisition, other than for the linear right-of-way needed for the project (as determined in close
consultation with FTA staff), should not take place until an ROD, FONSI, or CE is issued.
12. ENVIRONMENTAL JUSTICE. Executive Order 12898, Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income Populations, requires the U.S.
DOT and the FTA to make environmental justice (EJ) part of our mission by identifying and
addressing, as appropriate, disproportionately high and adverse human health or environmental
effects on programs, policies, and activities on minority populations and/or low income
populations. Environmental justice at FTA includes incorporating environmental justice and
nondiscrimination principles into transportation planning and decision-making processes as
well as project-specific environmental reviews. FTA Circular 4703.1 “Environmental Justice

VII–10

FTA C-5100
05/18/2015

Policy Guidance for Federal Transit Administration Recipients,” provides FTA recipients and
subrecipients with guidance and instructions necessary to carry out the executive order.
13. INTERGOVERNMENTAL REVIEW. Executive Order 12372 and DOT regulations,
“Intergovernmental Review of Department of Transportation Programs and Activities” (49
CFR part 17), require that a grant applicant applying for FTA funds comply with a state’s
intergovernmental review process. The requirement is to ensure that the appropriate state
authorities are informed about and provided an opportunity to comment on projects for which
federal assistance is being provided within the state. Many states have their own review
procedures, which describe the federal programs and activities that had been selected for
intergovernmental review and how applicants satisfy the states’ intergovernmental review
requirements.
If there is no intergovernmental review process in the grant applicant’s state, then programming
of a project in the TIP/statewide transportation improvement program (STIP), or Unified
Planning Work Program (UPWP), as appropriate, will be considered by FTA as meeting the
need for intergovernmental review.
If there is an adopted state process of intergovernmental review for an FTA program or
activity, FTA requires that the applicant, upon the MPO’s approval of the TIP, notify the single
point of contact for the state’s intergovernmental review process that the MPO has approved
the TIP and that the applicant has submitted the TIP to the governor for approval and
subsequent inclusion in the STIP. The applicant must provide the single point of contact with
the name and mailing address of the office to which it is submitting the TIP.
The applicant may wish to transmit to the single point of contact, or request the MPO to
transmit, pertinent documents on public transportation projects from the approved TIP. Timely
alerting of the single point of contact will allow that entity to review and comment on the
projects in the TIP during the STIP development process, if the entity so chooses. In the
appropriate places in the FTA electronic award management system, an applicant should
indicate whether Executive Order 12372 applies, and the date the state reviewed the
application, if applicable.
14. LABOR PROTECTIONS.
a. Davis-Bacon Act. For FTA programs, 49 U.S.C. 5333(a) imposes Davis-Bacon Act
prevailing wage requirements. This provision applies only to construction projects. In the
event that a project involves construction, Section 5333(a) requires the secretary to ensure
that all laborers and mechanics employed by contractors or subcontractors in the
performance of construction work financed with the assistance of loans or grants under
Chapter 53 be paid wages at rates not less than those prevailing on similar construction in
the locality as determined by the secretary of Labor and in accordance with the DavisBacon Act, as amended. The secretary may not approve any such loan or grant without first
obtaining assurance that required labor standards would be maintained upon the
construction work. This assurance is obtained when recipients accept grant funds and sign
the Master Agreement.

FTA C-5100
05/18/2015

VII–11

b. Transit Employee Protection. Before FTA may award a grant for capital or operating
assistance, fair and equitable arrangements must be made to protect the interests of transit
employees affected by the proposed FTA assistance (49 U.S.C. 5333(b), formerly Section
13(c) of the Federal Transit Act, as amended). Those arrangements must be certified by the
secretary of Labor as meeting the requirements of the law.
Questions concerning employee protective arrangements and related matters pertaining to
transit employees should be addressed to the Division of Statutory Programs, Employment
Standards Administration, U.S. Department of Labor, Room N-1519, 200 Constitution
Avenue, NW, Washington, DC 20210; telephone, 202-693-1193; fax, 202-693-1344.
15. PRESIDENTIAL COIN ACT. In accordance with Pub. L. 109–145, beginning January 1,
2008, all transit systems that receive operational subsidies or any disbursement of funds from
the federal government shall be fully capable of accepting and dispensing $1 coins and must
display signs and notices denoting such capability on the premises where coins or currency are
accepted or dispensed, including on each vending machine.
16. PRIVATE SECTOR PARTICIPATION. Federal law requires the public to be involved in the
transportation planning process, and specifically requires that private providers be provided an
opportunity to be consulted in developing transportation plans and programs in both urbanized
and rural areas. Public involvement processes must be proactive and provide complete
information, timely public notice, full public access to key decisions, and opportunities for
early and continuing involvement throughout the transportation planning and programming
process.
17. REAL PROPERTY ACQUISITION AND RELOCATION ASSISTANCE. If a grant applicant
intends to use federal financial assistance in a project which will require the acquisition of real
property, the applicant must provide assurances—required by the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act), as amended (42
U.S.C. 61)—that it will comply with the Uniform Act and with DOT implementing regulations
(49 CFR part 24) and FTA Circular 5010.1.
The “Uniform Relocation Assistance and Real Property Acquisition for Federal and FederallyAssisted Programs” regulations, at 49 CFR part 24, are DOT-wide regulations that apply to all
federal or federally assisted activities that involve the acquisition of real property or the
displacement of people. As such, the regulation is specific in naming certain actions that must
be taken to achieve uniformity in the treatment of property owners and displaced persons.
Recipients in the process of planning a federally assisted project that will require the
displacement of persons should be aware of the regulatory need for relocation planning during
the early stages of project development.
Title 49 CFR part 24 is available from the Government Printing Office website
at http://www.gpo.gov/fdsys/pkg/CFR-1999-title49-vol1/pdf/CFR-1999-title49-vol1-part24.pdf
or on FHWA’s website at http://www.fhwa.dot.gov/realestate/49cfr.htm. Also, recipients
should be aware of state laws regarding compensation for real property and requirements for
relocation of people and personal property.

VII–12

FTA C-5100
05/18/2015

Real property may be contributed as part of the local matching share. Credit can be allowed
only for that portion of the property needed to carry out the scope of the project. Federal funds
must not have been used to purchase any property proposed as local matching share. The
contributed in-kind property must be appraised at its current market value and when
incorporated into the project will be subject to the same reporting and disposition requirements
required of all project property. The appraisal, including a review appraisal, must be in
compliance with 49 CFR part 24 and FTA Circular 5010.1.
18. RESTRICTIONS ON LOBBYING. Federal financial assistance may not be used to influence
any member of Congress or an officer or employee of any agency in connection with the
making of any federal contract, grant, or Cooperative Agreement. The state, subrecipients, and
third party contractors at any tier awarded FTA assistance exceeding $100,000 must complete
and submit standard form SF-LLL, sign a certification so stating and must disclose the
expenditure of nonfederal funds for such purposes (49 CFR part 20).
Other federal laws also govern lobbying activities. For example, federal funds may not be used
for lobbying congressional representatives or senators indirectly, such as by contributing to a
lobbying organization or funding a grass roots campaign to influence legislation (31 U.S.C.
1352). These laws do not prohibit general advocacy for transit. Providing information to
legislators about the services a recipient provides in the community is not prohibited, nor is
using nonfederal funds for lobbying, so long as the required disclosures are made.
19. SAFETY. MAP-21 amended 49 U.S.C. 5329 to provide FTA with the authority to establish a
new comprehensive framework to oversee the safety of public transportation throughout the
United States. The law requires, among other things, that DOT issue a National Public
Transportation Safety Plan, establish safety performance criteria for all modes of public
transportation, define a “state of good repair,” establish minimum safety performance standards
for public transportation vehicles, and a safety certification training program. States are
required to strengthen their State Safety Oversight (SSO) programs and submit them to FTA
for certification. In addition, public transportation agencies must establish comprehensive
agency safety plans for their rail and bus operations. FTA will be issuing regulations and
interim guidance to implement these new requirements in consultation with public
transportation industry stakeholders.
Note: FTA has entered into a Memorandum of Understanding (MOU) with the American
Association of State Highway and Transportation Officials (AASHTO), the American Public
Transportation Association (APTA), and the Community Transportation Association of
America (CTAA) that supports the transit industry and federal commitment to bus safety, and
supports a model bus safety program to which all the signatories of this agreement have agreed
to subscribe. The program also focuses on addressing the needs of rural and small urban
providers.
20. SCHOOL BUS TRANSPORTATION. Title 49 U.S.C. 5323(f) prohibits the use of FTA funds
for exclusive school bus transportation for school students and school personnel. The
implementing regulation (49 CFR part 605) does permit regular service to be modified to
accommodate school students along with the general public (“tripper service”). For the purpose

FTA C-5100
05/18/2015

VII–13

of FTA’s school bus regulation, Head Start is considered a social service, not a school program.
Rules for the Head Start program limit the types of vehicles which may be used to transport
children participating in a Head Start program. FTA recipients may operate multifunctional
school activity vehicles that meet the safety requirements for school transportation, but may not
provide exclusive school service.
21. SEISMIC DESIGN AND CONSTRUCTION STANDARDS. A grant applicant must assure
FTA that any new building or addition to an existing building it designs and constructs with
federal assistance is compliant with seismic safety standards. The grant applicant is responsible
for knowing before accepting delivery that the building complies with seismic design and
construction requirements and, in accordance with DOT implementing regulations, “Seismic
Safety,” at 49 CFR 41.117(d), and must assure FTA that it will obtain a certificate of
compliance with the requirements. A recipient makes this assurance through the FTA annual
certification process.
22. SENSITIVE SECURITY INFORMATION. To the extent applicable, the recipient agrees to
comply with 49 U.S.C. 40119(b) and implementing DOT regulations, “Protection of Sensitive
Security Information,” 49 CFR part 15, and with 49 U.S.C. 114(s) and implementing
Department of Homeland Security, Transportation Security Administration regulations,
“Protection of Sensitive Security Information,” 49 CFR part 1520.
23. STATE SAFETY OVERSIGHT. MAP-21 did not alter 49 U.S.C. 5330, but subsection
20030(e) of MAP-21 provided that Section 5330 would be repealed three years after the
effective date of FTA’s regulation implementing the new Section 5329 requirements. Until
then, the current regulations at 49 CFR part 659 will remain in effect. The existing regulations
require oversight of the System Safety Program Plan development and implementation, internal
safety and security audits, accident and hazard investigations, and corrective action plan
development and implementation.
Until new regulations are in effect, an oversight agency must continue to annually certify to
FTA that it has complied with the requirements of 49 CFR part 659. The oversight agency must
submit each certification electronically to FTA using a reporting system specified by FTA. The
oversight agency must maintain a signed copy of each annual certification to FTA, subject to
audit by FTA.
The current Section 5330 and the amended Section 5329 authorize FTA to withhold up to five
percent of an affected state or urbanized area’s apportionment if FTA determines the state is
not in compliance or is not making adequate efforts to comply with the rule. FTA may restore
withheld formula funds if the state is in compliance within two years.

VII–14

FTA C-5100
05/18/2015

This page intentionally left blank

FTA C-5100
05/18/2015

Appendix A
Page A–1 of 11
APPENDIX A
INSTRUCTIONS FOR PREPARING A GRANT APPLICATION

1. PREAPPLICATION STAGES.
a. System Access. Applications for the Federal Transit Administration (FTA) grant program
funds must be submitted electronically through the FTA electronic award management system.
Applicants must have access to FTA’s the system in order to enter a grant. If an applicant does
not have access to the FTA electronic award management system, the applicant’s
representative should contact the appropriate FTA regional office for assistance. Contact
information for FTA’s regional offices can be found in Appendix D of this circular.
b. Planning. Before grant application submission, project planning requirements should be
complete and properly documented. Project activities to be funded should be included in a
federally approved Statewide Transportation Improvement Program (STIP) for capital projects
or a Unified Planning Work Program (UPWP) for planning projects.
c. Environmental Determination. The impact that a proposed FTA-assisted project will have on
the environment must be evaluated and documented in accordance with the National
Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et seq.), before grant application.
d. Annual Submission of Certifications and Assurances. A grant applicant applying for assistance
under the Urbanized Area Formula Program, or any other FTA grant program, must annually
submit Certifications and Assurances that are applicable to the grant applicant’s active and
new grants during the fiscal year (FY). The Certifications and Assurances should be examined
annually for changes, deletions, and additions.
e. Civil Rights Submissions. Civil rights submissions that may be required include a Title VI
Plan, Equal Employment Opportunity (EEO) Program, Disadvantaged Business Enterprise
(DBE) Program, DBE Goals, and Americans with Disabilities Act (ADA) Paratransit Plan.
FTA’s regional civil rights officer must verify that all required civil rights submissions are
current at the time the grant application is submitted in the FTA electronic award management
system. The required documentation must be submitted before the official submission of the
grant. A grant applicant should maintain readily available records of FTA approvals of civil
rights submissions in the event a question concerning compliance should arise. (“Civil Rights”
see Chapter VII of this circular.) FTA’s office of civil rights may request additional
information needed to affirm that the proposed project or elements thereof are in compliance
with federal civil rights requirements, and/or reports on activities and progress to address
findings identified in civil rights compliance reviews and assessments.
f. Flexible Funding Documentation (If Applicable). A grant applicant seeking the use of flexible
funds for its program, or a portion of it, must first make sure that the funds are available
locally, in accordance with the specific project selection process for the local area. Once this
resource of funds is included in the Transportation Improvement Program (TIP), and
incorporated into the STIP, the grant applicant informs the state transportation agency that a
grant application is in development to FTA for the use of flexible funds and requests that the

Appendix A
Page A–2 of 11

FTA C-5100
05/18/2015

state inform the Federal Highway Administration (FHWA) of the need to transfer the funds to
FTA for obligation (in some states, in practice, the Metropolitan Planning Organization [MPO]
or FTA notifies the state transportation agency). Once the state highway/transportation agency
determines that the state has sufficient obligation authority, the state agency notifies FHWA
that the agency will use the funds for public transportation purposes and requests that FHWA
transfer funds for the project to FTA. Information showing that these processes are under way
should be included in the grant application. The grant applicant should also include the type of
flexible funds, the amount, the purpose for which the funds will be used, and where they
appear in the STIP.
2. APPLICATION SUBMISSION (FTA ELECTRONIC AWARD MANAGEMENT SYSTEMS
INFORMATION). Applicants should submit their grant applications electronically in FTA’s
electronic management system database accessible via the Internet. The User Guide, available on
the homepage, provides detailed information on how to access and use FTA’s system. The User
Guide covers the creation, submission, award, and execution of a grant application; reporting
requirements, grant amendments, budget revisions, and close-out procedures are also addressed.
Applicants should enter the following information into the system when preparing an application:
a. Recipient Information. Applicants should enter or update all required information about their
organization in the appropriate fields, including recipient address, contact information, union
information, urbanized area (UZA) identification number, congressional district(s), Data
Universal Numbering System (DUNS) number, etc. The information must be current and
accurate for each grant and periodically updated as changes occur.
Any organization applying for a grant or cooperative agreement from the federal government
must have a DUNS number. This is a nine-digit identification number that provides a unique
identification for single business entities. Grant applicants that currently do not have a DUNS
number can obtain one for free from Dun and Bradstreet (www.dnb.com). It takes about five
weeks to receive a DUNS number after the information requested is imputed in the
“Instructions on How to Obtain a DUNS Number.” As soon as the DUNS number is received,
the applicant must inform an FTA regional office and update the grantee profile to include the
number.
b. Project Information. Certain basic information required on the Federal Grant Application
Standard Form 424 is incorporated into the project set-up fields. Applicants must identify
whether the application is a new grant, or a grant amendment, the project start/end date,
Executive Order (EO) 12372 – Intergovernmental Review of Federal Programs – review date,
if applicable (see additional information about EO 12372 at http://www.whitehouse.gov), and
grant project costs.
c. Project Description. This information must include sufficient detail for FTA to obtain a
general understanding of the nature and purpose of the planned activities. There is a project
description field as well as a specific text field for this information associated with each
activity line item (ALI). Project activities must be sufficiently described to assist the reviewer
in determining eligibility under the program. Sources of funds may also be included in the
description.

FTA C-5100
05/18/2015

Appendix A
Page A–3 of 11

d. Information to Support Engineering/Technical Review. For projects involving construction or
rehabilitation work, FTA reviews the information provided with the grant application, along
with any pertinent documents that may be on record, to make a determination on such things
as reasonableness of cost, sufficiency of preliminary engineering (PE) and design work
completed, and eligibility of force account costs. For this reason, a grant applicant needs to
include enough detail in the descriptive information about these projects to allow a positive
determination during the project review period. For facility construction projects, the grant
applicant should indicate the level of engineering work completed, and include the results of
that work (i.e., appropriate drawings and cost estimates). FTA needs site selection studies and
any pertinent information or documentation concerning environmental work performed for
projects involving land acquisition and construction. For more information on the
documentation requirements for these types of projects, the grant applicant should contact the
appropriate regional office.
e. Program Date and Page of Statewide Transportation Improvement Program (STIP) or Unified
Planning Work Program (UPWP). For the Section 5339 program, all projects using capital or
operating funds in the grant application must be included in the current STIP. The STIP is
jointly approved by FTA and FHWA. FTA funds cannot be obligated unless the STIP is
approved by FTA. The application should note the page(s) (or other location reference) in the
most recently approved STIP on which the project(s) contained in the application is listed. The
FTA electronic award management system has a field designated “program date” where the
date of the most recent FTA/FHWA STIP approval should be entered. If the grant includes
planning activities, the UPWP date should be entered here, if possible, or in the project details
Section.
f. Budget. The appropriate scopes and ALIs should be used when developing the project budget.
All rolling stock procurements must include vehicle description and fuel type; expansion
activities must include discussion on vehicle needs. The project budget should reflect the
precise activities for which the grant funds will be used, and the budget should be prepared in
accordance with requirements for the Section 5339 program. The project budget for each grant
application that includes transit enhancement funds must include a scope code for transit
enhancements and specific budget ALIs for transit enhancements. The grant budget may also
include non-add scopes. A non-add scope does not affect the total funds in the budget; it
simply allows FTA to query the funding amounts upon request. Non-add scopes are used for
Intelligent Transportation Systems (ITS), security funds, funding allocated to tribal
governments, and other special emphasis areas.
g. Determination of Sufficient Funds. All sources of funds must be identified and confirmed. The
grant applicant should periodically examine the status of existing grants to make sure that
unused fund balances, consisting of funds with a potential to lapse, are in fact needed to
complete those grants. A grantee may deobligate any excess funds during their period of
availability so that they may be reobligated into any pending or upcoming grant application.
Otherwise excess funds left at the end of the project will be deobligated at closeout and, if
lapsed, will be lost to the grantee.

Appendix A
Page A–4 of 11

FTA C-5100
05/18/2015

FTA reviews the status of a UZA’s apportionment, including prior year carryover balances, as
well as current year allocations, to make sure that sufficient funds exist to finance the proposed
program. FTA obligates Section 5339 program funds on a first-in, first-out basis to make sure
that the oldest funds are obligated before more recent funds. This process prevents the
potential of funds lapsing in a given UZA, which would render them no longer available to the
area for obligation.
h. Project Milestones. Every ALI in a grant budget must have associated project milestones. The
FTA electronic award management system will auto-populate milestones for some ALIs; for
example, rolling stock purchases will have five associated milestones. If does not prepopulate
specific milestones for a particular ALI, use the add function to add a minimum two
milestones reflecting the estimated start and end dates for that ALI to the grant application.
Recipients should include estimated milestone dates for such events as bid advertisement, bid
award, and contract completion.
i. Environmental Findings. The application should include a proposed classification of each ALI
in accordance with FHWA/FTA Environmental Impact and Related Procedures. (See 23 CFR
771.115 and 771.118.) Grant applicants should refer to part 771.118(c) and (d) for a listing of
the Class II (categorical exclusion) projects. Most projects under the Section 5339 program
meet the criteria for a categorical exclusion (CE). The application should include sufficient
information for FTA to determine whether a CE applies, such as a description of the project, as
well as any maps or figures typically included with the application or as requested by the FTA
regional office. However, if a project does not clearly meet the criteria for a CE, a grant
applicant should contact FTA’s regional office for assistance in determining the appropriate
environmental review process and level of documentation necessary.
Under NEPA, FTA must assess the potential environmental impacts resulting from an FTA
“action” (for FTA’s purposes this generally means a stand-alone FTA-funded project that has
independent utility and logical termini). However, a grant application generally includes
several ALIs that could be organized to constitute one or more stand-alone actions. For
applications containing more than one action, applicants should clearly identify the separate
actions and their corresponding ALIs. It is important to keep in mind that not all ALIs are
separate actions under NEPA, nor does one grant application necessarily contain only one
action. For each action identified the applicant should include a proposed classification of each
ALI in accordance with FHWA/FTA Environmental Impact and Related Procedures. (See 23
CFR 771.115 and 771.118.) Grant applicants should refer to part 23 CFR 771.118 (c) and or
(d) for a listing of the Class II (categorical exclusion) projects; for actions requiring an EA or
EIS, clearly indicate whether an EA or EIS is proposed.
j. Fleet Status. Applications submitted in requesting new or replacement revenue vehicles should
include, on the Fleet Status Report page, a summary of the composition of the applicant’s
entire fleet including the applicant’s spare ratio. In the case of replacement, the applicant
should state that the vehicles being replaced have met the minimum useful life criteria. A
Sample Fleet Status Report can be located in Appendix C of this circular. Official property
records (or a Rolling Stock Status Report) must be available upon request by FTA. The source
of some of this information may be documentation developed during the metropolitan and

FTA C-5100
05/18/2015

Appendix A
Page A–5 of 11

statewide transportation planning processes, in which case summary information and precise
reference to the earlier material will be acceptable. The requirements for equipment records
that must be maintained by the grantee are detailed in FTA Circular 5010.1
k. Application Submission. Once FTA deems the activities eligible, and determines that all
preapplication requirements have been satisfied, FTA assigns a grant number. At this point,
the grant is ready to be pinned (signed) and submitted in by the authorized official of the
applicant.
l. Department of Labor Certification. Once the grant application has been submitted by the
recipient, the application is forwarded to the Department of Labor (DOL). DOL must certify
all Bus and Bus Facilities grants containing capital or operating expenses before FTA will
approve them. See Chapter VI, “Program Management and Administrative Requirements,” of
this circular for more information on DOL certification.
m. Grant Approval. Once FTA staff determines through a final review of the application that
FTA program requirements and other federal requirements have been met, FTA awards and
obligates funds requested in the grant.
n. Grant Execution. After FTA has approved and awarded the grant, the applicant must execute
the award before funds can be drawn down from the grant. Grants that indicate the use of
preaward activity require the submission of a Federal Financial Report before grant execution.
Execution constitutes acceptance of the grant agreement terms and conditions.

Appendix A
Page A–6 of 11

FTA C-5100
05/18/2015

3. APPLICATION CHECKLIST
a. The following checklist is intended to assist applicants in preparing a complete
application.
Section 5339 APPLICATION CHECKLIST
Part I—Recipient Information
Are annual Certifications & Assurances selected and pinned/signed by the authorized official and attorney?
Is the Recipient Contact, Designated Signatory, Opinion of Counsel, Authorizing Resolution & other information complete?
Is UZA/Congressional District information entered and accurate?
Is union contact information entered and accurate?
Has Civil Rights Program documentation been approved by FTA?
Has the applicants DUNS Number been entered in the appropriate field?
Part II—Project Information
Does the Project Description include adequate detailed information of the project(s) such as an appropriate project title?
Is information on any subrecipient(s) and their projects included?
Is this a new application or grant amendment?
Does the application include an appropriate Start/End date?
If a supplemental agreement is applicable, has “yes” been selected?
Are activities and program dates consistent with STIP dates and the UPWP if planning activities are included?
Are STIP/UPWP pages attached in the FTA electronic award management system?
If pre-award authority is applicable, has “yes” been selected?
If federal debt delinquency is applicable, has “yes” been selected. (If yes, grant applicant must explain in details Section.)
Has the EO 12372 Review been completed, if applicable?
Is sufficient information included to evaluate project specific compliance with ADA, Title VI, and DBE requirements?
Is UZA/Congressional District information entered and accurate?
Part III—Budget
Are ALI codes entered under the appropriate scope codes and consistent with project descriptions?
Are funding percentages and match ratios appropriate?
Does the funding amount entered in the budget match financial information entered in the “Project Information” field for:

FTA C-5100
05/18/2015

Appendix A
Page A–7 of 11

a. Federal Funds
b. Local Match
Does the rolling stock (vehicle) line item contain accurate information such as:
a. Description
b. Fuel Type
Has descriptive information been added in the details Section of each ALI that identifies the items being funded using the line
item? If appropriate and necessary.
Where applicable, have non-add scopes been added showing the funds allocated to Intelligent Transportation Systems, security
funds, tribal governments, or other special areas of emphasis?
Part IV—Project Milestones
Are a minimum of two milestones listed for each ALI or scope? (If an ALI does not have standard milestones, they may be
added.)
Have estimated completion dates been entered?
Part V—Environmental Findings (NEPA)
Has an environmental finding been entered for each ALI or scope?
For Categorical Exclusion II (d), EA, and EIS, have decision documentation been referenced or attached?
Part VI—Fleet Status (This information is only required if acquiring rolling stock using grant funds.)
Has information pertaining to current and future revenue vehicles been entered?
If applicable, are vehicles entered in the table consistent with the budget?
If applicable, is the Spare Ratio 20 percent or less?

Appendix A
Page A–8 of 11

FTA C-5100
05/18/2015

4. ECHO INFORMATION.
a. Office of Management and Budget (OMB) Circulars A–102, A–110, and 31 CFR part 205
govern payment to recipients for financing operations under federal grant and other programs.
These regulations require that payment to a recipient be limited to the minimum amounts
needed and timed so as to be in accord only with the actual, immediate cash requirements of
the recipient in carrying out the approved project. For further information regarding cash
management procedures, refer to the FTA “ECHO System User’s Manual for
Recipients," https://ftaecho.fta.dot.gov/echologin.asp.
ECHO Control Number
(ECN)________________
The linked image cannot be displayed. The file may have been moved, renamed, or de

Initial Setup

(For initial ECHO setup agency will assign ECN Number, for non
ECHO payments enter "N/A").
The linked image cannot be displayed. The file may have been moved, renamed,

Info. Change

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

Recipient Information Change

Information from this form is required under the provision of 31 U.S.C. 3322 and 31 CFR 210. Treasury uses
this to transmit payment data by electronic means to a company's or a recipient's financial institution. Failure
to provide the requested information may delay or prevent the receipt of payments through the Treasury ACH
Payment System.

Note: See the bottom for instructions on completing this form.
RECIPIENT INFORMATION
NAME:
ADDRESS:
CITY/STATE/ZIP:

TELEPHONE NUMBER:
()

CONTACT PERSON NAME:
SIGNATURE OF AUTHORIZED OFFICIAL IN FTA
DATE: / /
AGENCY INFORMATION
NAME: Federal Transit Administration
ADDRESS: 1200 New Jersey Avenue, SE Washington, DC 20590
CONTACT PERSON NAME:
FINANCIAL INSTITUTION INFORMATION

(Note: Have Your Bank Complete This Section)

TELEFAX NUMBER:
()

FTA C-5100
05/18/2015

Appendix A
Page A–9 of 11

NAME:
ADDRESS:
CITY/STATE/ZIP:
CONTACT PERSON NAME:

TELEPHONE NUMBER:
()

NINE DIGIT ROUTING TRANSIT NUMBER: __ __ __ __ __ __ __ __ __
DEPOSITOR ACCOUNT TITLE:
DEPOSITORS ACCOUNT NUMBER:
TYPE OF ACCOUNT: CHECKING SAVING
SIGNATURE AND TITLE OF REPRESENTATIVE:

DATE:
//

FAX NUMBER:
()

b. Instructions for Completing Form:
(1) Fill in your ECHO Control Number. If this is an Initial ECHO Setup, agency will assign
ECHO Control Number.
(2) Check appropriate box(es):
(a) Initial Setup.
(b) Change in Bank Information.
(c) Change in Recipient Information.
(3) Fill out information in the appropriate section(s) listed below:
c. Recipient Information Section: Print or type the name of the recipient and address that will
receive ECHO/ACH payments. Also include a contact person’s name, date, telephone, and
telefax numbers.
d. Financial Institution Information Section: Have your bank fill out this section. They should
print or type the name and address of the financial institution who will receive the
ECHO/ACH payment. Also included are the ACH coordinator’s name, telephone number,
nine-digit routing transit number (ABA #), depositor (recipient) account title, depositor
(recipient) account number, and type of account (type can ONLY be designated as Checking
or Saving), signature and title of representative, date, and telefax number.

Appendix A
Page A–10 of 11

FTA C-5100
05/18/2015

e. Mail the form to the name and address shown in the Agency Information Section. This
section also includes a contact person’s name and telephone number.
f. If there are any questions, please call 202-366-9748 and ask for the agency’s ACH contact.

FTA C-5100
05/18/2015

Appendix A
Page A–11 of 11

This page intentionally left blank

FTA C-5100
05/18/2015

Appendix B
Page B–1 of 9
APPENDIX B
INSTRUCTIONS FOR PREPARING A PROJECT BUDGET

1. INTRODUCTION. This Appendix provides information about the items that appear on an Approved
Project Budget and provides instruction for preparing a project budget. A Federal Transit
Administration (FTA) grant obligates a recipient to undertake and complete activities defined by the
purpose or purposes of a grant and the budget incorporated into the grant agreement. A grant budget
is the approved financial plan that FTA and the recipient agree they will follow in carrying out the
purposes of the grant.
The recipient will use the FTA electronic award management system to prepare project budgets for
FTA’s various programs. The User’s Guide provides detailed instructions on how to create a project
budget within the FTA electronic award management system.
Within a grant, groups of activities often relate logically to each other; a group of related activities is
called a project. Several projects form an overall program. A recipient may apply for a program of
projects (POP) in a single grant. The project budget is designed to group activities for a single project
or a POP within scopes. A scope includes related activities that have the same broad purpose. A grant
program and budget may have several scopes.
So that FTA can comply with the Federal Funding Accountability and Transparency Act of 2006
(Pub.L 109–282), enacted September 26, 2006, a designated recipient must provide FTA with the
following information for each subrecipient: the name of the entity receiving the award, the amount
of the award, the location of the entity receiving the award, and the primary location of performance
under the award, including the city, state, and congressional district. The designated recipient may
choose to submit this information as a separate attachment in the FTA electronic award management
system or to include the information in the POP.
2. DEVELOPING THE BUDGET. FTA uses a scope code to establish the purpose of a group of
activities. FTA derives the numbering of both the Scope and Activity levels of information on the
Approved Project Budget from the activity codes in the FTA electronic award management system.
To find the link to the current scope level codes and activity line items (ALIs), see the main menu of
the FTA electronic award management system.
3. GRANT MODIFICATIONS. At times, it may be necessary to modify a grant after it has been
awarded by revising the budget or amending the grant. The recipient is responsible for controlling
and monitoring all grant activities to ensure they are implemented according to the approved budget.
The manner in which the applicant initially structures a budget during the grant application phase can
facilitate or impede project management, particularly when unforeseen events require changes in the
project.
There are three ways to modify a grant after it has been awarded—either through a budget revision,
an administrative amendment, or a grant amendment. Whether FTA permits a budget revision (with
or without prior FTA approval before incurring costs), or whether the grantee will need an
amendment to the project, depends on the effect of the proposed change on the scope of the project.
FTA’s review of grant modifications will include a determination of whether or not the proposed

Appendix B
Page B–2 of 9

FTA C-5100
05/18/2015

change is significant enough to require Department of Labor (DOL) certification of Employee
Protective Arrangements. Recipients should contact the FTA regional or metropolitan office for
questions relating to grant modification requests, including which type of modification is appropriate
for the proposed action.
Grant modifications are electronically submitted, reviewed, and approved in the FTA electronic
award management system.
a. Budget Revision.
(1) General. Budget revisions may be made as long as there is no change in the recipient,
purpose, scope codes, and federal funding of the grant, regardless of the fiscal year the funds
were appropriated. Budget revisions must be consistent with the activities contained in an
approved Statewide Transportation Improvement Program (STIP) and satisfy applicable
National Environmental Policy Act (NEPA) requirements. Useful life of new equipment must
be addressed in the budget revision, as applicable.
(2) Procedures. Grantees submit budget revisions in the FTA electronic award management
system using the “Revise Project Budget” screen. Budget revision requests must include a
reason for the revision. For each ALI being adjusted, either by quantity or dollar amount,
grantees must include a brief explanation in the “Details” section for the change being
requested. The FTA reviewer will return incomplete budget revisions to the grantee for more
information. For assistance with completing budget revisions, please contact the FTA regional
or metropolitan office.
Recipients may request budget revisions either before or after incurring costs, depending on
the nature of the request. If the budget revision meets the criteria outlined below, FTA
concurrence is required before costs associated with the proposed change are incurred.
(3) Budget Revisions that Require Prior Approval. Under certain circumstances, grantees must
obtain FTA approval before incurring costs for proposed budget revisions. At times, FTA
review of a proposed budget revision meeting the criteria below may result in a
recommendation to complete a grant amendment. The FTA regional or metropolitan office
will make this determination during its review.
(a) The federal share of the grant exceeds $100,000 and the change in the cumulative amount
of funds allocated to each scope from the originally approved scope exceeds 20 percent.
(b) Federal funds are transferred between ALIs with different federal matching ratios, such as
moving funds from a capital activity with a match ratio of 80/20 to an operating activity
with a match ratio of 50/50. This activity also requires a financial purpose code (FPC)
transfer.
(c) Changing the federal share of an existing ALI, such as changing an ALI from 80/20 to
85/15 to account for compliance with Americans with Disabilities Act (ADA) or Clean
Air Act (CAA) requirements.

FTA C-5100
05/18/2015

Appendix B
Page B–3 of 9

(d) For revenue rolling stock, when the budget revision changes the number of vehicles to be
purchased by more than two units, for grants with fewer than ten vehicles, or more than
20 percent from the quantity identified in the original grant.
Note: If the change in the number of revenue rolling stock vehicles exceeds 20 percent,
the revision must meet FTA’s spare ratio requirements, and a bus fleet status report should
supported it.
(e) The budget revision changes the size or physical characteristics of the ALIs without
changing the project scope.
(f) The addition of an ALI to an existing scope included in the grant, provided that the
request does not change the amount of federal funds awarded in the original grant or
change the scope of the project contained in the grant.
(g) The addition of an activity within an approved scope requires that the grantee affirm in the
budget revision request that the new activity is consistent with the approved STIP and, if
applicable, has satisfied NEPA requirements.
Note: If an ALI to an existing scope is added to move a facility project to the next phase
of construction, the budget revision may be sent to DOL for informational purposes. In
addition, FTA must confirm eligibility of the project to advance to the next phase of
construction.
(4) Examples. The following are examples of situations when a grantee might request a budget
revision. Note: If the examples below meet one of the criteria outlined above, the grantee
must request FTA concurrence prior to incurring the costs for the requested activities.
(a) Budget revisions to existing Activity Line Items (ALIs). Grant AB–90–234 includes a
scope for vehicles (111–00) with the ALI to purchase 40' buses (11.12.01) and a scope for
stations stops/terminals (113–00) with the ALI for construction of a bus terminal
(11.33.01). The construction costs for the station are expected to be higher than originally
anticipated and there is a surplus in the vehicle line item because the vehicle costs were
less than anticipated. A grantee may request to move funds from ALI 11.12.01 to
11.33.01 to cover added construction expenses. Following the process described above
and after determining if the request meets the threshold for prior FTA approval, the
grantee may request to move the excess funds from 11.12.01 to 11.33.01.
(b) Adding an ALI to an existing scope. The scope for Stations Stops/Terminals exists in the
grant and funds are allocated to acquire route signing (11.32.09). However, the grantee
determines that it prefers to use the funds to construct passenger shelters (11.33.10),
which is an activity within the scope 113–00. The grantee may request a budget revision
to add the ALI—11.33.10 and shift the funds from 11.32.09 with prior FTA concurrence.
In addition, the grantee must confirm that the approved STIP includes construction of bus
shelters and has satisfied applicable NEPA requirements.
b. Administrative Amendment.

Appendix B
Page B–4 of 9

FTA C-5100
05/18/2015

(1) General. An administrative amendment is usually initiated by FTA and may only be used
when no change will result in the scope, amount, or purpose of the grant. FTA may use an
administrative amendment to change or clarify the terms, conditions, or provisions of a grant
agreement. FTA also uses an administrative amendment to change the year or type of funds
obligated for a grant, to transfer equipment from one grantee to another, to reflect a change in
the grantee or grantee’s name, or to deobligate federal funds that the grantee no longer needs
to complete the approved project scope or purpose.
c. Grant Amendment.
(1) General. FTA requires a grant amendment when there is either a change in the scope or an
addition of federal funds to an existing grant. Grant amendments are subject to the same
application requirements as a new grant request.
(2) Procedures. Grantees submit grant amendments in the FTA electronic management system
using the “Create Amendment” screen. Grant amendments require a revised grant agreement,
revised budget, and may require a change in the amount of funds obligated for the grant. An
amendment is subject to the same requirements as a new grant request except that the grantee
does not need to resubmit the portions of the original grant application that the change did not
affect. The grantee must submit a detailed description of the changes and a revised project
budget. For example, in the FTA electronic award management system under the project
details section of the grant, grantees should include a header (e.g., “Amendment #1”) and
describe the reason for the amendment and the changes to the grant and budget.
(3) Change of Scope. FTA requires a grant amendment if the request changes the scope of a
grant. Examples and an exception to changes in scope that result in a grant amendment
include:
(a) Examples.
1. A change in the quantity of items the grantee will purchase or construct that changes
the purpose or intent of the approved grant.
2. The addition of a new project scope code or the deletion a project scope code if the
deletion affects the intent or objectives of the grant.
3. The addition of an ALI that results from an amendment to the approved
Transportation Improvement Program (TIP)/STIP.
4. Budget revisions that result in additions or deletions of scope(s) or ALIs are sent to
DOL for information. Grant amendments are sent to DOL for certification.
(4) Change in Federal Funds. FTA requires a grant amendment if the request changes the total
amount of federal funds in the grant. The one exception is if the request does not change the
scope of a grant and the only action is the deobligation of funds, an administrative
amendment is used to process the grant modification.

FTA C-5100
05/18/2015

Appendix B
Page B–5 of 9

4. FORMAT FOR CAPITAL ASSISTANCE. Capital expenditures under the Section 5339 Program
include those items defined as “capital” in 49 U.S.C. 5302(a). Vehicles can be purchased either for
replacement or expansion purposes. Careful attention to use of the appropriate ALI codes enables
FTA to report accurately on the use of formula funds, for example in the annual Statistical Summary
report. For the current Statistical Summary reports,
see http://www.fta.dot.gov/funding/data/grants_financing_1090.html.
ALIs are six-digit codes. For capital projects, the first digit “1” indicates a capital item. The second
digit indicates whether it is for bus (1), fixed guideway projects (other than New Starts) (2), or New
Starts (4).
The scope code is generally composed of the first three digits of the related ALIs grouped into it. The
three-digit scope is followed by a two-digit sequence number so that the same scope can be used
more than once in a budget, if there are multiple projects with similar purposes. Several examples of
use of scopes and ALIs follow.
EXHIBIT B–1
Project Scope—Sample No. 1
Scope

Quantity

111–010

Bus—Rolling Stock

Activity

Line Items

6

Quantity
11.12.02

Purchase 35-foot replacement buses with lifts

4

11.13.03

Purchase 30-foot buses with lifts for service expansion

2

11.12.40 Spare Parts/Assoc Capital Maintenance Items
In the example above, a mix of rolling stock will be purchased, and the scope includes the purchase
of associated capital maintenance items (spare parts). If a grant applicant wishes to include radios and
fareboxes as part of this purchase, it could also list radios and fareboxes as part of the rolling stock
scope. In such a case, the grant applicant would not include the quantities for the radios and
fareboxes in the rolling stock total quantity under 111–01, but would indicate it in the activity level
description. If a grant applicant proposes to purchase an entirely new fare collection system or radio
communications system, the more appropriate classification might appear as follows:

Appendix B
Page B–6 of 9

FTA C-5100
05/18/2015
EXHIBIT B–2
Project Scope—Sample No. 2

Scope
114–00

Quantity
Bus—Support Equipment and Facilities

45

(Note that in this example the activity code description appropriate to this Scope
Code, Bus—Stations/Stops/Terminals has been overwritten to provide a more accurate
description.)
Activity

Line Items

11.42.06

Shop Equipment

11.42.10

Purchase Fare Collection (mobile)

Scope

Quantity
45
Quantity

116–00

Bus Signal/Communications System

Activity

Line Items

11.61.01

Design Bus Signal System

11.62.02

Acquire Communication System

11.62.03

Purchase Bus Radios

70

Quantity

50

From these examples, it is also possible to combine activities that are associated, but which do not
necessarily match the first three digits of the scope code under which they appear. A grant applicant
that operates a fixed guideway system or engages in a new start project will use scope level numbers
that correspond to the Fixed Guideway and New Start segments of the Activity Code Chart, for
example, scope code 121–01, 02... for Rail Rolling Stock or 141–01, 02... for New Start Rolling
Stock; or 123–01, 02... for Rail Stations and 143–01, 02... for New Start Stations.
a. Subrecipient Information. The design of the project budget can also accommodate subrecipient
information in cases where a recipient such as the state wishes to track each subrecipient’s
projects separately. In the following examples, the grant applicant is purchasing rolling stock on
behalf of two small operators:

FTA C-5100
05/18/2015

Appendix B
Page B–7 of 9
EXHIBIT B–3
Presenting Subrecipient Information—Format Option No. 1

Scope

Quantity

111–01

Purchase Rolling Stock and Related Equipment

7

Activity

Line Items

11.12.03

Purchase replacement buses w/lifts for Allegany County

3

11.12.15

Purchase vans w/lifts for Cumberland Transit System

4

11.42.10

Purchase of fareboxes for buses

11.62.03

Purchase of radios for vans

Quantity

EXHIBIT B–4
Presenting Subrecipient Information—Format Option No. 2
Scope

Quantity

111–00

Rolling Stock for Allegany County

Activity

Line Items

11.12.03

Purchase replacement buses w/lifts for Allegany County

Scope

3

Quantity
3
Quantity

111–01

Rolling Stock for Cumberland Transit System

Activity

Line Items

11.12.15

Purchase vans w/lifts for Cumberland Transit System

4
Quantity
4

Under Format Option No.1, FTA would base the determinations regarding budget revisions and
scope changes on the quantity total of seven vehicles found at the scope level. Under Format
Option No. 2, FTA would base those determinations on the specific scope level quantity for each
of the subrecipients—that is, quantities of three and four.
b. Two Budget Approaches to Large Capital Projects. A grant applicant can also choose which of
the two format options above best suit its internal management of projects. For example, a grant
applicant developing a Bus Rapid Transit line may wish to develop separate scope level activities

Appendix B
Page B–8 of 9

FTA C-5100
05/18/2015

for each station and include the relevant activities under each, or the same grant applicant may
wish to group all activity under one scope.
In either case, the project budget can easily accommodate budget revisions, since funds can be
transferred between or among various scope level projects and their associated line items.
5. REGIONAL ASSISTANCE. Grant applicants should contact the appropriate FTA regional office for
assistance in preparing the project budget for a Section 5339 Program grant application.

FTA C-5100
05/18/2015

Appendix B
Page B–9 of 9

This page intentionally left blank

FTA C-5100
05/18/2015

Appendix C
Page C–1 of 10
APPENDIX C
FORMS AND REPRESENTATIVE DOCUMENTS

Document

Page
Sample Authorizing Resolution ......................................................................... D–2
Sample Opinion of Counsel ................................................................................ D–4
Fleet Status Report as Seen in the FTA Electronic Award Management System
(Screen Sample).................................................................................................. D–5
Proceeds from Sale of Transit Assets ................................................................. D–6
Like-kind Exchange Example (Calculation Tool) ............................................... D–7

Appendix C
Page C–2 of 10

FTA C-5100
05/18/2015

1. SAMPLE AUTHORIZING RESOLUTION.
Resolution No. _________________
Resolution authorizing the filing of applications with the Federal Transit Administration, an
operating administration of the United States Department of Transportation, for federal
transportation assistance authorized by 49 U.S.C. Chapter 53; Title 23, United States Code, or
other federal statutes administered by the Federal Transit Administration.
WHEREAS, the Federal Transit Administrator has been delegated authority to award federal
financial assistance for a transportation project;
WHEREAS, the grant or cooperative agreement for federal financial assistance will impose
certain obligations upon the Applicant, and may require the Applicant to provide the local
share of the project cost;
WHEREAS, the Applicant has or will provide all annual certifications and assurances to the
Federal Transit Administration required for the project;
NOW, THEREFORE, BE IT RESOLVED BY (Governing Body of Applicant)

1. That (Title of Designated Official) is authorized to execute and file an application for
federal assistance on behalf of (Legal Name of Applicant) with the Federal Transit
Administration for federal assistance authorized by 49 U.S.C. Chapter 53, Title 23,
United States Code, or other federal statutes authorizing a project administered by the
Federal Transit Administration. (If the Applicant is requesting Urbanized Area Formula
Program assistance authorized by 49 U.S.C. 5339, either alone or in addition to other
federal assistance administered by the Federal Transit Administration, the resolution
should state whether the Applicant is the Designated Recipient as defined by 49 U.S.C.
5307(a)(2) and required by 49 U.S.C. 5339.)
2. That (Title of Designated Official) is authorized to execute and file with its applications
the annual certifications and assurances and other documents the Federal Transportation
Administration requires before awarding a federal assistance grant or cooperative
agreement.
3. That (Title of Designated Official) is authorized to execute grant and cooperative
agreements with the Federal Transit Administration on behalf of (Legal Name of
Applicant).

FTA C-5100
05/18/2015

Appendix C
Page C–3 of 10

Appendix C
Page C–4 of 10

FTA C-5100
05/18/2015
CERTIFICATION

The undersigned duly qualified (Title of Designated Official), acting on behalf of the (Legal
Name of Applicant), certifies that the foregoing is a true and correct copy of a resolution
adopted at a legally convened meeting of the

(Governing Body of the Applicant) held on (Month, Day, Year)

[If the Applicant has an official seal, impress here.]

_________________________________
(Signature of Recording Officer)

_________________________________
(Title of Recoding Officer)

_________________________________
(Date)

FTA C-5100
05/18/2015

Appendix C
Page C–5 of 10

2. SAMPLE OPINION OF COUNSEL.
Name of Applicant
Address of Applicant
Dear (Responsible Official for Applicant):
This communication will serve as the requisite opinion of counsel to be filed with the Federal
Transit Administration, United States Department of Transportation, in connection with the
application of (Name of Applicant) for federal transportation assistance authorized by 49
U.S.C. Chapter 53; Title 23, United States Code; and other federal statutes authorizing
activities administered by the Federal Transit Administration.
(If the Applicant intends to use this opinion to qualify for Bus and Bus Facilities Program
assistance authorized by 49 U.S.C. 5339, the opinion must state whether the Applicant is the
Designated Recipient as defined at 49 U.S.C. 5307(a)(2).)
Citations to laws, regulations, etc. establishing the legal authority of (Name of Applicant) to
carry out transportation projects for which federal assistance is sought is set forth below:
1. ______________________________________________ is authorized by (cite and quote
from legal authority) to provide and assist transportation ___________________________
________________________________________________________________________
2. The authority of (Name of Applicant) to provide funds for the local share of the project is
set forth in (cite source and provide a copy of, for example, the local ordinance passed by
city council or other governing body authorizing funding for the local share)
__________________________________________________________________________
________________________________________________________________________
3. I have reviewed the pertinent federal, state, and local laws, and I have concluded that there
is no legal impediment to your filing an application for the project for which (Name of
Applicant) seeks assistance. Furthermore, as a result of my examination, I find that there is
no pending or threatened litigation or other action which might in any way adversely affect
the proposed project or the capability of (Name of Applicant) to carry out the project.

Sincerely,
_______________________
Legal Counsel

Appendix C
Page C–6 of 10

FTA C-5100
05/18/2015

3. FLEET STATUS REPORT. Shown below is a screen sample of a Fleet Status Report as seen
in the FTA electronic award management system:
FLEET STATUS - City of Folsom
Before Change
I. Active Fleet
A. Peak Requirement
13
-2
B. Spares
0
0
C. Total (A +B)
13
-2
D. Spare Ratio (B/A)
0.00%
0.00%
II. Inactive Fleet
A. Other
0
0
B. Pending Disposal
0
0
C. Total (A+B)
0
0
Total (I. C and II. C)
13
-2
FLEET STATUS - Paratransit Inc.
Before Change
I. Active Fleet
A. Peak Requirement
160
B. Spares
30
C. Total (A +B)
190
D. Spare Ratio (B/A) 18.75%
II. Inactive Fleet
A. Other
0
0
B. Pending Disposal
0
0
C. Total (A+B)
0
0
Total (I. C and II. C)
190
0

After
11
0
11
0.00%
0
0
0
11

After
160
30
190
18.75%
0
0
0
190

FTA C-5100
05/18/2015

Appendix C
Page C–7 of 10

4. PROCEEDS FROM THE SALE OF PUBLIC TRANSPORTATION ASSETS.
Pursuant to 49 U.S.C. 5334(h), a recipient may transfer or sell capital assets that it has acquired
with FTA assistance. In accordance with 49 U.S.C. 5334(h)(4), the recipient must apply the
proceeds of the sale of public transportation assets no longer needed to a subsequent public
transportation capital project.
A recipient intending to dispose of an asset in accordance with 49 U.S.C. 5334(h) should
inform FTA of its intentions, before disposing of the asset, in order to obtain FTA approval.
When the recipient/applicant next submits a grant application to FTA, it must apply the
proceeds to reduce the gross capital costs of the new public transportation project. In the FTA
electronic award management system, the grant applicant should indicate the amount of the
proceeds in the “Adjustment Amount” field; this shows that the proceeds from the earlier
disposition are being applied to the project and that those proceeds are being used to reduce the
total eligible cost. If appropriate, the grant applicant may also describe this action in the Project
Description or Extended Budget Description text box.
EXAMPLE.
Twenty years ago FTA provided a recipient with assistance to purchase a parcel of land.
The recipient no longer needs the parcel for public transportation purposes. Having
received disposition concurrence from FTA, the recipient sells the parcel and receives net
sales proceeds of $50,000. The recipient applies to FTA for assistance in purchasing a
bus. The estimated cost of the bus is $250,000. On the electronic application screen, FTA
expects the recipient to report the use of the proceeds from the earlier sale of the asset in
the following manner:
5. LIKE-KIND EXCHANGE EXAMPLE.
A recipient purchased a new bus in 2005 for $250,000; 80 percent of the total price, or
$200,000, was federal funding while 20 percent, or $50,000, was local. Thus, there was an
initial $200,000 “federal interest” in the new vehicle.
Instead of keeping the bus in service for twelve years, the useful life under FTA guidelines, the
recipient chose to sell the bus after six years and replace it with a new vehicle.
Since the bus had a minimum useful life of twelve years and FTA determined its depreciation
on a “straight-line” basis, the depreciated value of the vehicle after six years was half the
original price, or $125,000. The remaining federal interest was 80 percent of that figure,
$100,000.
Assume, for example, the recipient realized $100,000 from the sale of the six-year-old bus, or
$25,000 less than the straight-line depreciated value of the original vehicle.
If the recipient were to purchase a new bus in 2011 for $270,000, the transaction would look
like this:

Appendix C
Page C–8 of 10

FTA C-5100
05/18/2015
Net project cost calculation:

Gross project cost of new bus

$270,000

Less straight-line depreciated
value of replaced bus.

- 125,000

Net project cost

$145,000

Federal share 80%

116,000

Local share 20%

29,000

Sources of funds for new bus:

Net sales proceeds from
replaced bus

$ 100,000

New local cash
Straight-line depreciated value
shortfall

25,000

Local share of net project cost

29,000

Federal share
TOTAL

116,000
$270,000

The federal interest in the new bus is $216,000 ($100,000 transferred from the old vehicle and
$116,000 in the new).
If the recipient had received more than $125,000 in proceeds, all the proceeds (minus
reasonable sales costs) would still have been applied as the federal share to the new vehicle.
FTA is entitled to have applied to the new vehicle the greater of the straight-line depreciation
or the fair market value as evidenced by the sales proceeds.

FTA C-5100
05/18/2015

Appendix C
Page C–9 of 10

6. SAMPLE SUPPLEMENTAL AGREEMENT.
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
FEDERAL TRANSIT ADMINISTRATION
SUPPLEMENTAL AGREEMENT
(Attachment to FTA G–15, October 1, 2008)
It is the practice of the Federal Transit Administration to enter into a formal agreement with the
Designated Recipient for projects that the Designated Recipient does not carry out directly.
Under this Grant Agreement, the Grant Recipient is not the Designated Recipient. Therefore,
the Designated Recipient hereby agrees to permit the Grant Recipient under this Grant
Agreement to receive and dispense the federal assistance funds described in this Grant
Agreement. The Designated Recipient further agrees that the Grant Recipient shall assume all
responsibilities set forth in this Grant Agreement.
The Federal Government and the Grant Recipient under this Grant Agreement hereby agree
that the Designated Recipient is not in any manner subject to or responsible for the terms and
conditions of this Grant Agreement and is a party to this Grant Agreement only to assign the
right to receive and dispense federal funds to the Grant Recipient as described above.
Signature: _______________________________________ Date: _______________
Name (Print/Type): _______________________________
Authorized Official
Federal Transit Administration

Signature: _______________________________________ Date: _______________
Name (Print/Type): _______________________________
Authorized Official
Designated Recipient

Signature: _______________________________________ Date: _______________
Name (Print/Type): _______________________________
Authorized Official
Grant Recipient

Appendix C
Page C–10 of 10

FTA C-5100
05/18/2015

This page intentionally left blank

FTA C-5100
05/18/2015

Appendix D
Page D–1 of 3
APPENDIX D

FTA REGIONAL AND METROPOLITAN CONTACT INFORMATION
Office

Area Served

Contact Information

Region I

Connecticut, Maine,
Massachusetts,
New Hampshire, Rhode
Island, and Vermont

Volpe National
Transportation Systems Center
Kendall Square
55 Broadway, Suite 920
Cambridge, MA 02142-1093
Phone: 617-494-2055
Fax: 617-494-2865

Region II

New York- and New Jersey

One Bowling Green
Room 429
New York, NY 10004-1415
Phone: 212-668-2170
Fax: 212-668-2136

Region III

Delaware, District of
Columbia,
Maryland, Pennsylvania,
Virginia, and West Virginia

1760 Market St
Suite 500
Philadelphia, PA 19103-4124
Phone: 215-656-7100
Fax: 215-656-7260

Region IV

Alabama, Florida, Georgia,
Kentucky,
Mississippi, North Carolina,
Puerto Rico, South Carolina,
Tennessee, and U. S. Virgin
Islands
Illinois, Indiana, Minnesota,
Michigan,
Ohio, and Wisconsin

230 Peachtree Street NW.
Suite 800
Atlanta, Georgia 30303
Phone: 404-865-5600
Fax: 404-865-5605

Region VI

Arkansas, Louisiana, New
Mexico, Oklahoma, and Texas

819 Taylor St
Room 8A36
Fort Worth, TX 76102
Phone: 817-978-0550
Fax: 817-978-0575

Region VII

Iowa, Kansas, Missouri, and
Nebraska

901 Locust, Suite 404
Kansas City, MO 64106
Phone: 816-329-3920
Fax: 816-329-3921

Region V

200 W Adams St
Suite 320
Chicago, IL 60606
Phone: 312-353-2789
Fax: 312-886-0351

Appendix D
Page D–2 of 3

Office

FTA C-5100
05/18/2015

Area Served

Contact Information

Colorado, Montana, North
Dakota,
South Dakota, Utah, and
Wyoming

12300 W Dakota Ave.
Suite 310
Lakewood, CO 80228-2583
Phone: 720-963-3300
Fax: 720-963-3333

Region IX

Arizona, California, Hawaii,
Nevada, Guam, American
Samoa, and Northern Mariana
Islands

201 Mission St.
Room 1650
San Francisco, CA 94105-1839
Phone: 415-744-3133
Fax: 415-744-2726

Region X

Alaska, Washington, Oregon,
and Idaho

Jackson Federal Building
915 Second Ave, Suite 3142
Seattle, WA 98174-1002
Phone: 206-220-7954
Fax: 206-220-7959

Lower Manhattan
Recovery Office

Lower Manhattan

1 Bowling Green, Room 436
New York, NY 10004
Phone: 212-668-1770
Fax: 212- 668-2505

New York Metropolitan
Office

New York Metropolitan Area

One Bowling Green, Room 428
New York, NY 10004-1415
Telephone: 212-668-2201
Fax: 212-668-2136

Philadelphia Metropolitan
Office

Philadelphia Metropolitan
Area

1760 Market Street, Suite 510
Philadelphia, PA 19103-4124
Telephone: 215-656-7070
Fax: 215-656-7269

Chicago Metropolitan
Office

Chicago Metropolitan Office

200 West Adams Street
Suite 2410 (24th floor)
Chicago, IL 60606
Telephone: 312-886-1616
Fax: 312-886-0351

Los Angeles Metropolitan
Office

Los Angeles Metropolitan
Area

888 S. Figueroa, Suite 1850
Los Angeles, CA 90012
Telephone: 213-202-3950
Fax: 213-202-3961

Washington, DC
Metropolitan Office

Washington, DC
Metropolitan Area

1990 K Street NW, Suite 510
Washington, DC 20006
Telephone: 202-219-3562/3565
Fax: 202-219-3545

Region VIII

FTA C-5100
05/18/2015

Appendix D
Page D–3 of 3

This page intentionally left blank

FTA C-5100
05/18/2015

Appendix E
Page E–1 of 6
APPENDIX E
REFERENCES

a. Federal Transit Laws, Title 49, United States Code, Chapter 53.
b. Federal-aid highway and surface transportation laws, Title 23, United States Code.

c. Moving Ahead for Progress in the 21st Century Act (Pub. L. No. 112-141, July 6, 2012).
d. Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users,
(SAFETEA–LU) (Pub. L. 109–59, 119 Stat. 1144, Aug. 10, 2005).
e. Transportation Equity Act for the 21st Century (TEA–21) (Pub. L. 105–178, 112 Stat. 107,
June 9, 1998).
f. Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) (Pub. L. 102–240, 105
Stat. 1914, Dec. 18, 1991).
g. Federal Public Transportation Act of 1978 (Pub. L. 95–599, Nov. 6, 1978).
h. Americans with Disabilities Act of 1990, as amended, 42 U.S.C. 12101 et seq.
i. Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 794.
j. Title VI of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d.
k. Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e.
l. Clean Air Act, as amended, 42 U.S.C. 7401 et seq.
m. Section 404 of the Clean Water Act, as amended, 33 U.S.C. 1344.
n. Policy on Lands, Wildlife, and Waterfowl Refuges, and Historic Sites, 49 U.S.C. 303.
o. Section 106 of the National Historic Preservation Act, 16 U.S.C. 470f.
p. Internal Revenue Code, Non-profit Organizations, 26 U.S.C. 501.
q. Lobbying Restrictions, 31 U.S.C. 1352.
r. Disadvantaged Business Enterprises, 23 U.S.C. 101 note.
s. Program Fraud Civil Remedies Act, 31 U.S.C. 3801 et seq.
t. Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970, as

Appendix E
Page E–2 of 6

FTA C-5100
05/18/2015

amended, 42 U.S.C. 4601, et seq.
u. Age Discrimination Act of 1975, as amended, 42 U.S.C. 6101 et seq.
v. Title IX of the Education Amendments of 1972, as amended, 20 U.S.C. 1681 et seq.
w. National Environmental Policy Act of 1969, as amended, 42 U.S.C. 4321 et seq.
x. Davis-Bacon Act, as amended, 40 U.S.C. 3141 et seq.
y. Drug-Free Workplace Act of 1988, as amended, 41 U.S.C. 701 et seq.
z. DOT regulations, “Organization and Delegation of Powers and Duties,” 49 CFR Part 1.
aa. DOT regulations, “Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments,” 49 CFR Part 18.
bb. DOT regulations, “New Restrictions on Lobbying,” 49 CFR Part 20.
cc. DOT regulations, “Nondiscrimination in Federally-Assisted Programs of the Department of
Transportation—Effectuation of Title VI of the Civil Rights Act of 1964,” 49 CFR Part 21.
dd. DOT regulations, “Uniform Relocation Assistance and Real Property Acquisition for
Federal and Federally-Assisted Programs,” 49 CFR Part 24.
ee. DOT regulations “Nondiscrimination on the Basis of Sex in Education Programs or
Activities Receiving Federal Financial Assistance,” 49 CFR Part 25.
ff. DOT regulations, “Participation by Disadvantaged Business Enterprises in Department of
Transportation Financial Assistance Programs,” 49 CFR Part 26.
gg. DOT regulations, “Nondiscrimination on the Basis of Disability in Programs or Activities
Receiving Federal Financial Assistance,” 49 CFR Part 27.
hh. DOT regulations, “Governmentwide Debarment and Suspension (Nonprocurement),” 49
CFR Part 29.
ii. DOT regulations, “Governmentwide Requirements for Drug-Free Workplace (Financial
Assistance),” 49 CFR Part 32.
jj. DOT regulations, “Transportation Services for Individuals with Disabilities (ADA),” 49
CFR Part 37.

FTA C-5100
05/18/2015

Appendix E
Page E–3 of 6

kk. DOT regulations, “Americans with Disabilities Act (ADA) Accessibility Specifications for
Transportation Vehicles,” 49 CFR Part 38.
ll. DOT regulations, “Procedures for Transportation Workplace Drug and Alcohol Testing
Programs,” 49 CFR Part 40.
mm. FTA regulations, 49 CFR Subtitle B Chapter VI.
nn. Joint Federal Highway Administration/FTA regulations, “Planning Assistance and
Standards,” 23 CFR Part 450 and 49 CFR Part 613.
oo. Joint Federal Highway Administration/FTA regulations, “Environmental Impact and
Related Procedures,” 23 CFR Part 771 and 49 CFR Part 622.
pp. Federal Motor Carrier Safety Administration regulations, “Controlled Substances and
Alcohol Use and Testing,” 49 CFR Part 382.
qq. U.S. Department of Treasury regulations, “Rules and Procedures for Efficient Federal- State
Funds Transfers,” 31 CFR Part 205.
rr. U.S. Environmental Protection Agency regulations, “Determining Conformity of Federal
Actions to State or Federal Implementation Plans,” 40 CFR Part 93.
ss. Executive Order 12372, “Intergovernmental Review of Federal Programs,” July 14, 1982.
tt.

Executive Order 12898, “Federal Actions To Address Environmental Justice in Minority
Populations and Low-Income Populations,” Feb. 11, 1994.

uu. Office of Management and Budget Circular A–87, “Cost Principles for State, Local, and
Indian Tribal Governments,” codified at 2 CFR Part 225, Aug. 31, 2005.
vv. Office of Management and Budget Circular A–94, “Guidelines and Discount Rates for
Benefit-Cost Analysis of Federal Programs,” Oct. 29, 1992.
ww. Office of Management and Budget Circular A–133, “Audits of States, Local Governments,
and Non-Profit Organizations,” June 23, 2003.
xx. Department of Transportation Order to Address Environmental Justice in Minority
Populations and Low-Income Populations, 62 FR 18377 (Apr. 15, 1997).
yy. DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English
Proficient (LEP) Persons, 70 FR 74087 (Dec. 14, 2005).

Appendix E
Page E–4 of 6
zz. FTA Circular 4220.1, “Third Party Contracting Requirements.”
aaa. FTA Circular 4702.1, “Title VI Program Guidelines for FTA Recipients.”
bbb. FTA Circular 5010.1, “Grant Management Requirements.”
ccc. FTA Circular 9030.1, “Urbanized Formula Program Guidance and Application
Instructions.”
ddd. U.S. General Services Administration, “Excluded Parties List
System,” https://www.sams.gov.
eee. FTA Master Agreement FTA MA(15), Oct. 1, 2008.
fff.

FTA ECHO-Web System Operations Manual
http://www.fta.dot.gov/documents/ECHOWebGranteeUserManual.pdf

FTA C-5100
05/18/2015

FTA C-5100
05/18/2015

Appendix E
Page E–5 of 6

Appendix E
Page E–6 of 6

FTA C-5100
05/18/2015

This page intentionally left blank

FTA C-5100
05/18/2015

INDEX
Page IX–1
INDEX
SUBJECT AND LOCATION IN CIRCULAR

Activity Line Item (ALI), A–2
Advance Capital Project Authority, III–7
Age Discrimination in Employment Act (ADEA), VII–
4
Alcohol-Based Fuels, I–3
Alternative Financing, III–12
Americans with Disabilities Act (ADA), IV–11, IV–
13, A–1, B–2, E–3
Americans with Disabilities Act of 1990 (ADA), VI–3,
VII–2, VII–3
Applicant, I–2, V–1, V–2, V–3, V–4, V–8, V–9, V–10,
VII–10, VII–13, A–1, A–2, A–3, A–4, A–5, A–6,
B–1, B–5, B–6, B–7, B–8, C–2, C–4, C–5, C–7
Definition, I–2
Application Checklist, A–6
Application Requirements, A–5, B–4
Apportionments, II–7, III–1, III–2, V–8
Approved Project Budget, B–1
Associated Capital Maintenance, I–2, B–5
Definition, I–2
Associated Capital Maintenance Items (Spare Parts),
B–5
Authorizing Legislation, I–1
Authorizing Resolution, V–2, A–6, C–1, C–2
Best Practices Procurement Manual, V–5
Bicycle, III–6, III–8
Access, III–8
Facilities, III–8
Budget Constraints, IV–5
Bus, I–1, I–3, I–5, I–7, I–8, II–1, II–2, II–4, II–5, II–7,
III–1, III–2, III–3, III–4, III–5, III–8, IV–4, IV–5,
IV–9, IV–10, IV–11, IV–12, IV–13, IV–14, IV–15,
IV–17, IV–18, V–5, VII–1, VII–7, VII–12, VII–13,
A–5, B–3, B–5, B–6, B–7, C–5, C–7, C–8
Shelters, IV–15
Bus and Bus Facilities Program, I–1, I–7, I–8, II–1, II–
5, III–8, IV–4, IV–5, IV–14, VII–7, C–5
Bus Rapid Transit, I–1, I–3, II–6, B–7
Bus Rapid Transit System (BRT)
Definition, I–2
Bus Testing, IV–10, IV–11
Buy America, VI–3
Buy America Requirements, IV–10, IV–11, V–5, V–6,
V–7
Capital Cost of Contracting, III–4, III–5, III–11
Capital Lease, I–3, III–4
Definition, I–2, I–3
Capital Program, V–2
Capital Projects, II–1, II–3, II–7, II–8, III–2, III–4, III–
8, III–12, A–1, B–5, B–7
Catalog of Federal Domestic Assistance (CFDA), II–1
Certifications and Assurances, V–1, V–2, V–8, V–9,
VII–1, A–1, C–2

Chief Executive Officer of a State, IV–1, IV–2
Civil Rights Submissions, A–1
Clean Air Act (CAA), VII–5, B–2
Clean Fuel, I–3, II–4, III–3, III–8
Definition, I–3
Clean Fuels Grant Program, II–4
Commercial Driver’s License (CDL), VII–6
Common Grant Rule, III–8, III–12, V–5, V–6
Community Development Block Grants, III–11
Competitive Procurements, V–4
Compressed Natural Gas (CNG), I–3, III–3
Cooperative Agreement, V–9, VII–5, VII–9, VII–12,
A–2, C–2, E–2
Davis-Bacon Act, VII–10, E–2
Debarment and Suspension, VII–6, E–2
Department of Homeland Security, VII–13
Department of Housing and Urban Development
(HUD), III–11
Department of Labor (DOL), V–9, A–5, B–2
Certification, A–5
Department of Transportation (DOT), I–1, V–11
Designated Recipient(s), II–2, IV–3
Determination of Sufficient Funds, A–3
Direct Recipient, I–3, I–6, I–7, II–2, II–7, III–2, IV–4,
V–10, VII–7, VII–8
Disadvantaged Business Enterprise (DBE), VI–3, VII–
4, A–1
Goals, VII–5
Drug and Alcohol Testing, VI–3, VII–7, VII–8, E–3
Drug-Free Workplace, VII–8, E–2
Drug-Free Workplace Act, VII–8
Drug-Free Workplace and Drug and Alcohol Testing
Rules, VII–8
Dun and Bradstreet, V–9, A–2
DUNS Number, V–9, V–10, A–2, A–6
ECHO Control Number, V–10
Elderly Persons and Persons with Disabilities, V–4
Eligible Recipients, I–6, I–8, II–1, II–3, II–4, IV–3
Employee Political Activity, VII–8
Environmental Impact and Related Procedures, IV–16,
VII–9, E–3
Environmental Protection, I–3, VI–3, VII–5, E–3
Environmental Protection Agency (EPA), I–3, VII–5
Equal Employment Opportunity, VII–4, A–1
Equal Employment Opportunity (EEO) Program, VI–
3, A–1
Equal Employment Opportunity (EEO) Requirements,
VII–4
Equal Employment Opportunity Commission (EEOC),
VII–4
Equipment, I–2, I–3, II–7, III–2, III–3, III–7, III–8,
III–11, IV–6, IV–7, IV–8, IV–13, IV–16, IV–17,

INDEX
Page IX–2
V–2, V–3, V–4, V–6, VI–2, VII–7, A–5, B–2, B–4,
B–6, B–7
Excluded Parties List System (EPLS), VII–6
Extended Budget Description, C–7
Federal Funding Accountability and Transparency Act,
V–10, V–11, B–1
Federal Highway Administration (FHWA), IV–1, A–2
Federal Internal Revenue Service, III–7
Federal Motor Carrier Safety Administration
(FMCSA), VII–7
Federal Railroad Administration (FRA), VII–7
Federal Share of Project Costs, III–8
Federal Transit Administration (FTA), I–1, II–1, IV–1,
IV–3, V–1, VII–1, A–1, B–1
Circular 9070,, VI–4
State Management Reviews, VI–2
Financial Capacity, III–14, V–2, V–3
Financial Purpose Code (FPC), B–2
Fixed Guideway Systems, II–6, II–7
Fleet and Service Expansion, III–2, III–3, IV–9, IV–10
Fleet Status, I–4, IV–9, A–4, A–7, B–3, C–1, C–6
Fleet Status Report, A–4, B–3, C–1, C–6
Definition, I–4
Flexible Funds, A–1, A–2
General Services Administration (GSA), VII–6
Governor, I–3, I–4, II–7, III–2, IV–1, IV–2, IV–4,
VII–10
Definition, I–4
Grant Application, II–1, II–2, II–3, II–5, III–2, III–6,
III–8, III–9, III–11, III–12, III–14, IV–1, IV–4, IV–
7, IV–8, IV–9, IV–13, IV–14, IV–15, IV–16, IV–
18, V–1, V–2, V–3, V–8, V–9, A–1, A–2, A–3, A–
4, A–5, B–1, B–4, B–8, C–7
Grantee/Recipient User Access Request Form, V–9
Grants.Gov, V–9
Hatch Act, VII–8, VII–9
Indian Tribal Governments, III–7, E–3
Intelligent Transportation Systems (ITS), I–4, III–3,
A–3
Definition, I–4
Intercity Bus, I–1, I–6, II–7, III–6, IV–13
Intergovernmental Review, VII–10, A–2, E–3
Requirements, VII–10
Job Access and Reverse Commute (JARC) Program,
VI–1
Legal Capacity, V–1
Like-Kind, IV–12, IV–13, C–1, C–7
Like-Kind Exchange, IV–12, C–1, C–7
Policy, IV–12
Limited English Proficient (LEP), VII–3, E–3
Liquefied Natural Gas (LNG), III–3
Lobbying, VI–3, VII–12, E–1, E–2
Long-Range Plan, IV–1, IV–4
Maintenance Plan, V–4
Master Agreement, I–4, VII–1, VII–10, E–4
Definition, I–4
Metropolitan Planning Organization (MPO), I–4, IV–
1, IV–3, VII–5, A–2
Definition, I–4
Mobility Management, III–4

FTA C-5100
05/18/2015
National Environmental Policy Act (NEPA), IV–15,
VII–9, A–1, B–2
National Transit Database, I–5, III–2, III–5, V–11
Net Project Cost, I–5, III–8, III–9, III–10, C–8
New Freedom Program, VI–1, VI–2
Nondiscrimination, VII–2, VII–3, VII–4, VII–5, VII–
9, E–2
Age, VII–2, VII–4
Sex, VII–2, VII–4
Title VI, VII–3
Office of Management and Budget (OMB), III–4, III–
7, A–8
Office of Personnel Management, VII–8
Operating Assistance, II–7, VII–11
Operating Expenses, I–5, III–10, III–11, A–5
Definition, I–5
Opinion of Counsel, V–1, V–2, A–6, C–1, C–5
Overhaul, I–4, I–5, I–6, IV–13
Oversight, I–1, II–3, II–4, III–6, IV–9, V–2, VII–12
FTA, II–3
Planning Justifications, IV–14
Planning Requirements, IV–1, IV–3, V–7, A–1
Pre-Application Requirements, A–5
Pre-award and Post-delivery Reviews, VI–3
Preliminary Engineering (PE), A–3
Preventive Maintenance, I–5, III–4, III–5, IV–13
Private Operators, VII–1, VII–2
Program Fraud Civil Remedies Act, VII–5, E–1
Program Income, III–10
Program of Projects (POP), I–5, II–2, IV–3, V–11, B–
1
Definition, I–5
Project Budget, III–2, A–3, B–1, B–2, B–4, B–6, B–8
Project Description, A–2, A–6, C–7
Project Milestones, A–4, A–7
Public Comment on Fare and Service Changes, V–7
Public Transportation, I–1, I–2, I–3, I–4, I–5, I–7, II–1,
II–3, II–4, II–6, II–7, II–8, III–3, III–4, III–5, III–6,
III–8, III–9, III–10, III–11, IV–1, IV–2, IV–3, IV–
4, IV–5, IV–10, IV–11, V–3, V–8, V–9, V–11, VII–
1, VII–2, VII–9, VII–10, VII–12, A–2, C–7, E–1
Definition, I–6
Rail Rolling Stock, B–6
Real Property Acquisition and Relocation Assistance,
VII–11
Rebuilding, I–6, IV–13
Recipient, I–2, I–3, I–5, I–6, I–7, II–1, II–2, II–3, II–4,
II–7, III–4, III–5, III–6, III–7, III–8, III–9, III–10,
III–11, III–13, III–14, IV–3, IV–4, IV–5, IV–6, IV–
7, IV–8, IV–9, IV–10, IV–11, IV–12, IV–13, IV–
14, IV–16, IV–17, IV–18, IV–19, V–1, V–3, V–4,
V–5, V–7, V–8, V–9, V–10, V–11, V–12, VI–1,
VI–2, VI–3, VI–4, VII–1, VII–2, VII–3, VII–4,
VII–5, VII–6, VII–7, VII–8, VII–9, VII–12, VII–
13, A–2, A–5, A–6, A–8, B–1, B–2, B–6, C–2, C–
5, C–7, C–8, C–9
Definition, I–3, I–6
Rehabilitation Act of 1973, VII–2, E–1
Relocation Assistance, VII–11, E–1, E–2
Replacement Buses, B–5, B–7

FTA C-5100
05/18/2015
Revenue Rolling Stock, I–7, IV–7, B–3
Rural Area Formula program, I–5, II–7, II–8
Safe, I–8, E–1
Safety, I–4, II–4, III–4, IV–10, VII–7, VII–8, VII–12,
VII–13, E–3
Safety Program Plan, VII–13
Satisfactory Continuing Control, V–3
Secretary of Labor, VII–10, VII–11
Section 5309, I–7, II–5, II–6, II–7
Section 5310 Program
Administrative Requirements, VI–1
Eligible Subrecipients, VI–2
Program of Projects (POP), VI–3
State Management Plan, VI–1
Section 5311, I–5, II–7, II–8, III–2
Section 5311 Program, VI–1
Seismic Design, VII–13
Seismic Design and Construction Standards, VII–13
Sensitive Security Information, VII–13
Single Audit Act, II–4, VII–6
Social Security Act, III–11
Spare Ratio, I–4, IV–8, IV–9, A–4, A–7, B–3, C–6
Standard Form 424, A–2
State of Good Repair, I–5, II–5, II–6, II–7, IV–17, V–
4, VII–12
State Safety Oversight, II–4, VII–12, VII–13
Statewide Planning, IV–1, IV–2
Statewide Transportation Improvement Program
(STIP), I–6, II–2, VII–10, A–1, A–3, B–2
Definition, I–6
Statewide Transportation Planning, IV–1, IV–2, IV–3,
IV–9, A–5
Statistical Summary Report, B–5
Subarea Allocation, II–2, IV–3
Subrecipient, I–3, I–7, II–3, IV–5, IV–6, IV–10, V–10,
V–11, VII–2, VII–3, VII–4, A–6, B–1, B–6, B–7
Supplemental Agreement, II–3, A–6, C–9
System for Award Management, V–9, VII–6
TEAM, I–3, IV–6
Technical Capacity, V–1, V–3, V–4

INDEX
Page IX–3
Title VI, VI–3
Title VI, Equal Employment Opportunity (EEO),
VI–3
Title VI of the Civil Rights Act of 1964, VII–3, E–1,
E–2
Title VII of the Civil Rights Act of 1964, VII–4, E–1
Toll Revenues, III–9
Transfer of Apportionments, III–2
Transit Asset Management, I–5, II–7
Transit Enhancement, A–3
Transportation Equity Act for the 21st Century (TEA–
21), E–1
Transportation Improvement Program (TIP), I–6, II–2,
A–1, B–4
Definition, I–6, I–7
Transportation Infrastructure Financing and Innovation
Act (TIFIA), III–13
Transportation Planning Process, I–4, I–7, IV–1, IV–2,
IV–3, VII–11, A–5
Triennial Reviews, II–2, II–3, IV–9
Two Budget Approach, B–7
Unified Planning Work Program (UPWP), VII–10, A–
1, A–3
Uniform Act, VII–11
Uniform Relocation Assistance and Real Property
Acquisition Policies Act, VII–11
Uniform System of Accounts, I–7, III–2, V–12
Definition, I–7
United States Coast Guard (USCG), VII–7
Urbanized Area (UZA), I–4, I–7, VI–1, A–2
Definition, I–4, I–7
Urbanized Area Formula program, I–5, II–1, II–2, IV–
9, VII–7, A–1, C–2
Useful Life, I–3, I–5, I–6, I–7, III–7, IV–7, IV–8, IV–
9, IV–12, IV–13, IV–14, A–4, B–2, C–7
Definition, I–7
Useful Life Policy, IV–7, IV–8
Van, VII–7
Vanpool, III–11