83 FR 33018 - FTA Fiscal Year 2018 Apportionments, Allocations, Program Information and Guidance

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

Federal Register Volume 83, Issue 136 (July 16, 2018)

Page Range33018-33043
FR Document2018-14989

This notice provides priorities for programs in fiscal year (FY) 2018, announces the full-year apportionments and allocations for grant programs, provides contract authority, and describes plans for several competitive programs.

Federal Register, Volume 83 Issue 136 (Monday, July 16, 2018)
[Federal Register Volume 83, Number 136 (Monday, July 16, 2018)]
[Notices]
[Pages 33018-33043]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14989]



[[Page 33017]]

Vol. 83

Monday,

No. 136

July 16, 2018

Part III





Department of Transportation





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Federal Transit Administration





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FTA Fiscal Year 2018 Apportionments, Allocations, Program Information 
and Guidance; Notice

Federal Register / Vol. 83 , No. 136 / Monday, July 16, 2018 / 
Notices

[[Page 33018]]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2018 Apportionments, Allocations, Program 
Information and Guidance

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: This notice provides priorities for programs in fiscal year 
(FY) 2018, announces the full-year apportionments and allocations for 
grant programs, provides contract authority, and describes plans for 
several competitive programs.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact Kimberly Sledge, Director, Office of Transit Programs, 
at (202) 366-2053. Please contact the appropriate FTA Regional Office 
for any specific requests for information or technical assistance. FTA 
Regional Office contact information is available on FTA's website: 
www.transit.dot.gov. An FTA headquarters contact for each major program 
area is included in the discussion of that program in the text of this 
notice. FTA recommends stakeholders subscribe on FTA's website 
www.transit.dot.gov to receive email notifications when new information 
is available.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. FY 2018 Funding for FTA Programs
    A. Funding Based on the Transportation, Housing and Urban 
Development, and Related Agencies Appropriations Act, 2018 (Pub L. 
115-141)
    B. Oversight Takedown
    C. FY 2018 Formula Apportionments: Data and Methodology
III. FY 2018 Program Highlights
    A. Streamlining Activities
    1. Risk-Based Federal Financial and Milestone Progress Reporting 
and Review
    2. Real Estate Appraisal and Review Appraisal Submissions
    3. Updates to Triennial Review and State Management Reviews
    4. Online Dialogue on Definition of a ``Federal Project''
    5. Emergency Relief Docket
    6. Cancellation of Circulars
    B. Policy Priorities
    1. Safety
    2. Positive Train Control (PTC)
    3. Automation
    4. Value Capture
    5. Transit Asset Management Plans
    6. Bus Testing (49 U.S.C. 5318)
    C. FY 2018 Competitive Program Funding
IV. FY 2018 Program-Specific Information
    A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))
    B. State Planning and Research Program (49 U.S.C. 5304 and 
5305(e))
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Fixed Guideway Capital Investment Grants Program (49 U.S.C. 
5309)
    E. Formula Grants for the Enhanced Mobility of Seniors and 
Individuals With Disabilities Program (49 U.S.C. 5310)
    F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
    G. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    H. Appalachian Development Public Transportation Assistance 
Program (49 U.S.C. 5311(c)(2))
    I. Formula Grants for Public Transportation on Indian 
Reservations Program (49 U.S.C. 5311(j))
    J. Public Transportation Innovation (49 U.S.C. 5312)
    K. Technical Assistance and Workforce Development (49 U.S.C. 
5314)
    L. Public Transportation Emergency Relief Program (49 U.S.C. 
5324)
    M. State Safety Oversight Formula Program (49 U.S.C. 5329)
    N. State of Good Repair Grants Program (49 U.S.C. 5337)
    O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)
    P. Apportionments Based on Growing States and High-Density 
States Formula Factors (49 U.S.C. 5340)
    Q. Washington Metropolitan Area Transit Authority Grants
V. FTA Policy and Procedures for FY 2018 Grants
    A. Automatic Pre-Award Authority to Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2018 Annual List of Certifications and Assurances
    D. Civil Rights Requirements
    E. Consolidated Planning Grants
    F. Grant Application Procedures
    G. Grant Management

I. Overview

    This document contains important information about FTA programs, 
statutes (49 U.S.C. 5301, et seq.) and policy priorities. In addition, 
this document provides notice to stakeholders that FTA is apportioning 
the full Fiscal Year (FY) 2018 authorized contract authority through 
September 30, 2018 for FTA formula and competitive programs pursuant to 
Division L-Transportation, Housing and Urban Development, and Related 
Agencies Appropriations Act (Pub. L. 115-141).
    For each FTA program, FTA has provided information on the FY 2018 
authorized funding levels, the basis for apportionment or allocation of 
funds, requirements specific to the program, the period of availability 
of funds, and other program information. A separate section provides 
information on pre-award authority as well as other requirements and 
guidance applicable to FTA programs and grant administration. Finally, 
the notice includes a reference to tables on FTA's website that show 
new contract authority apportioned and made available through September 
30, 2018.
    Information in this document includes references to the existing 
FTA program guidance and circulars. Some information in FTA's guidance 
documents and circulars may have been superseded by new provisions in 
the Fixing America's Surface Transportation (FAST) Act, but these 
guidance documents and circulars remain a resource for program 
management in most areas. FTA intends to revise the guidance and 
circulars, as appropriate.

II. FY 2018 Funding for FTA Programs

A. Funding Based on Division L-Transportation, Housing and Urban 
Development, and Related Agencies Appropriations Act, 2018

    Division L-Transportation, Housing and Urban Development, and 
Related Agencies Appropriations Act, 2018 (Pub. L. 115-141) 
(``Consolidated Appropriations Act, 2018'') makes funding available 
through September 30, 2018. Current funding availability for each 
program is identified in section IV of this notice and in Table 1 
located on FTA's FY 2018 Apportionment web page: www.transit.dot.gov/funding/apportionments.

B. Oversight Takedown

    49 U.S.C. 5338(f) (all subsequent statutory references are to title 
49, United States Code) provides for the following oversight takedowns 
of FTA programs: 0.5 percent of Metropolitan and Statewide Planning 
funds, 0.75 percent of Urbanized Area Formula Grant funds, 1 percent of 
Fixed Guideway Capital Investment Grants funds, 0.5 percent of Formula 
Grants for the Enhanced Mobility of Seniors and Individuals with 
Disabilities funds, 0.5 percent of Formula Grants for Rural Areas 
funds, 1 percent of State of Good Repair Formula Grants funds, 0.75 
percent for Grants for Buses and Bus Facilities funds, and 1 percent of 
Capital and Preventive Maintenance Projects for grants to the 
Washington Metropolitan Area Transit Authority. The funds are used to 
provide necessary oversight activities, such as oversight of the 
construction of any major capital project receiving Federal transit 
assistance; to conduct State Safety Oversight, drug and alcohol, civil 
rights, procurement systems, management, planning certification, and 
financial management

[[Page 33019]]

reviews and audits; evaluations and analyses of grantee-specific 
problems and issues; for salaries and benefits of FTA employees 
performing certain oversight activities; and to generally provide 
technical assistance and correct deficiencies identified in compliance 
reviews and audits.

C. FY 2018 Formula Apportionments: Data and Methodology

1. Apportionment Tables
    FTA publishes apportionment tables on its website for each program 
that reflect the funding level in the full-year appropriations act less 
oversight take-downs, as applicable. Tables displaying the funds 
available to eligible states, tribes, and urbanized areas have been 
posted to http://www.transit.dot.gov/funding/apportionments. This 
website contains a page listing the apportionment and allocation tables 
for FY 2018, links to prior year formula apportionment notices and 
tables, and the National Transit Database (NTD) and Census data used to 
calculate the FY 2018 apportionments.
2. National Transit Database (NTD) and Census Data Used in the FY 2018 
Apportionments
    Consistent with past practices, the calculations for Sections 5307, 
5311, including 5311(j) (Tribal Transit), 5329, 5337, and 5339 rely on 
the most-recent transit service data reported to the NTD, which for FY 
2018 is the 2016 report year. In some cases, where an apportionment is 
based on the age of the system, the age is calculated as of September 
30, 2017, the last day before FY 2018 began. Recipients or 
beneficiaries of either Section 5307 or 5311 funds are required to 
report to the NTD. Additionally, several transit operators report to 
the FTA's NTD on a voluntary basis. For the 2016 report year, the NTD 
includes data from 953 reporters in urbanized areas, 925 of which 
reported operating transit service. The NTD also includes data from 
1,478 providers of rural transit service, which includes 126 Indian 
Tribes providing transit service.
    The 2010 Census data is used to determine population and population 
density for Sections 5303, 5305, 5307 and 5339 as well as rural 
population and rural land area for the 5311 program. The formulas for 
Sections 5307, 5311, and 5311(j) include tiers where funding is 
allocated based on the number of persons living in poverty, and the 
Section 5310 formula program allocates funding based on the population 
of older adults and people with disabilities. The Census Bureau no 
longer publishes decennial census data on persons living in poverty and 
persons with disabilities. As a result, since FY 2013, FTA has used the 
data for these populations available via the Census' American Community 
Survey (ACS). The NTD and Census data that FTA used to calculate the 
apportionments associated with this notice can be found on FTA's 
website: www.transit.dot.gov/funding/apportionments.
    The FY 2018 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2011-2015 ACS five-year 
data set, which was published in December 2016. This data represents 
the most recent five-year ACS estimates that are available as of 
October 1 for the year being apportioned. As was the case in prior 
years, data on low-income persons comes from ACS Table B17024, ``Age by 
Ratio of Income to Poverty in the Last Twelve Months,'' and data on 
people with disabilities under 65 years old comes from ACS Table S1810, 
``Disability Characteristics.'' Data on older adults (over 65 years 
old) comes from ACS Table B01001, ``Sex by Age.''

III. FY 2018 Program Highlights and Changes

A. Streamlining Activities

    This past year FTA has reviewed its existing regulations and 
guidance and other agency actions to evaluate their continued necessity 
and determine whether they are crafted effectively to solve current 
problems. FTA's review was based on the principle that there should be 
no more requirements than necessary, and those requirements should be 
straightforward, clear, and designed to minimize burdens. Once issued, 
these requirements should be reviewed periodically and revised to 
ensure that they continue to meet the needs for which they originally 
were designed, remain cost-effective, and remain cost-justified. As a 
part of this review, FTA also considered input from external 
stakeholders that was provided in response to the Department's Notice 
of Review of Policy, Guidance and Regulation (82 FR 26734 (June 8, 
2017)) and Notification of Regulatory Review (82 FR 45750 (Oct. 2, 
2017)). Because of these reviews and external input, FTA has 
implemented the following:
1. Risk-Based Federal Financial and Milestone Progress Reporting and 
Review
    Beginning on October 1, 2017, FTA implemented a risk-based policy 
on how frequently recipients must submit milestone progress reports 
(MPRs) and Federal Financial Reports (FFRs) for awarded grants. Under 
the new policy, all grants of $2 million or less that are awarded to 
recipients located in urbanized areas over 200,000 in population should 
be reported annually rather than quarterly unless a specific risk is 
identified for that grant. FTA has identified the awards that meet this 
criterion and has switched them from a quarterly to an annual reporting 
cycle. As FTA reviews new draft applications in FY 2018, we will assign 
a quarterly or an annual reporting cycle for the award based on this 
criterion. This policy change will reduce the grant reporting burden by 
approximately 13,000 reports for FTA recipients while allowing FTA to 
prioritize reviewing MPRs and FFRs for higher risk grants.
2. Real Estate Appraisal and Review Appraisal Submissions
    All real property transactions must be undertaken in accordance 
with the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970, as amended (Uniform Act or URA), 42 U.S.C. 4601 
et seq., and 49 CFR part 24, the implementing regulation. This includes 
requirements for appraisals and review appraisals as described in FTA 
5010.1E Award Management Requirements. Additionally, Circular 5010.1E 
requires recipients to provide appraisals and review appraisals to FTA 
for review and concurrence for acquisitions and dispositions or 
property condemnation of more than $500,000, or in-kind contributions 
and land exchanges of any value before federal assistance is expended, 
or when the value is used as non-federal share. To reduce the burden on 
FTA recipients, FTA has increased the threshold to $1,000,000 for which 
appraisals and review appraisals for acquisition, disposition or 
property condemnations must be submitted to FTA for review. In-kind 
contributions and land exchanges of any value must still be submitted 
to FTA for review and concurrence. This change will reduce required 
submissions to FTA by 20 percent, saving about 50 total weeks of review 
time. FTA will make page-edits to Circular 5010.1E circular subsequent 
to this notice to document this change. FTA notes that all appraisals 
regardless of value must be compliant with 49 CFR 24.103. FTA may 
choose to review any appraisal or review appraisal used in an FTA 
assisted award when circumstances warrant or as part of a periodic 
review. The recipient must maintain documentation that supports 
valuation decisions in the parcel files.

[[Page 33020]]

3. Updates to Triennial Review and State Management Reviews
    For FY 2018, FTA has made updates and process changes to its 
Triennial and State Management Reviews. These changes are based on 
feedback received from our recipients, review contractors, and 
colleagues and are also part of FTA's ongoing commitment to improve 
consistency and transparency in its oversight reviews. We anticipate 
that these changes will result in a more efficient review process that 
provides our recipients with a clearer understanding of what is 
expected during a Triennial or State Management Review, how FTA 
reviewers determine compliance, and why a finding of deficiency is 
made.
    The Grantee Information Request (GIR) package is now called the 
Recipient Information Request (RIR) package. The FTA has redesigned the 
RIR to significantly reduce the level of effort required for completion 
by the recipient. The updated RIR package consists of:
    Recipient Profile Information: Basic information about the 
recipient that FTA uses to better understand the recipient's 
institutional and operating structure, and to help determine 
applicability of oversight requirements.
    Recipient Information Request: A list of documents and answers to 
specific questions that the FTA needs to begin assessing a recipient's 
compliance with the basic requirements identified in the Comprehensive 
Review Guide. The FTA is moving away from the narrative responses 
required in previous years. Once FTA's contractors begin reviewing the 
requested documentation, the recipient may be asked to provide answers 
to additional targeted questions on a case-by-case basis.
    Changes to the Comprehensive Review Guide:
    The FTA undertook a ``back to basics'' exercise with the Triennial 
and State Management Review Guide, known as the Comprehensive Review 
Guide, to identify the minimum compliance requirements and the optimal 
methods for assessing compliance. The key to this effort was ensuring 
that all questions were directly related to specific, citable, written 
requirements. This new guide clearly articulates what is expected of 
recipients and exactly how FTA will determine compliance. The guide can 
be accessed at https://www.transit.dot.gov/oversight-policy-areas/fy18-comprehensive-review-guide.
4. Online Dialogue on Definition of Federal Project
    The current definition of a ``Federal'' project is defined in the 
FAST Act, Public Law 114-94 as, ``any highway project, public 
transportation capital project, or multimodal project that, if 
implemented as proposed by the project sponsor, would require approval 
by any operating administration or secretarial office within the 
Department of Transportation.'' The FTA is now examining how it defines 
``Federal'' project and the effects of that definition on project 
implementation. To learn more, the FTA is conducting an online dialogue 
to help identify potential opportunities to expedite investments in 
transit infrastructure through the exclusion of certain projects or 
project elements from potentially burdensome Federal requirements. FTA 
intends to review the relevant thresholds for defining whether a 
project or project element qualifies as federally funded, which 
determines whether it is subject to various Federal requirements, 
reviews, and oversight.
    Through this online dialogue, the FTA will pose a series of 
questions and invite States, transit agencies, transit operators, and 
other stakeholders to submit comments and responses on this topic.
    The online dialogue will be open through August 15, 2018. FTA will 
provide a link to the online dialogue through email, social media, and 
its website.
5. Emergency Relief Docket
    On February 2, 2018 FTA announced the establishment of an Emergency 
Relief Docket for calendar year 2018. See https://www.thefederalregister.org/fdsys/pkg/FR-2018-02-02/pdf/2018-02083.pdf for more information. After an 
emergency or major disaster, if FTA requirements impede a grantee or 
subgrantee's ability to respond to the emergency or major disaster, a 
grantee or subgrantee may submit a request for temporary relief from 
FTA administrative and statutory requirements. A grantee or subgrantee 
seeking relief must submit a petition for waiver of FTA requirements at 
www.regulations.gov for posting in the docket (FTA-2018-0001). For 
additional information on the Emergency Relief Docket, please contact 
the appropriate FTA Regional Office.
6. Cancellation of Circulars
    As part of FTA's ongoing review of requirements, FTA has identified 
several circulars that should be cancelled. Information in these 
circulars is either no longer applicable or found in other guidance 
documents.

----------------------------------------------------------------------------------------------------------------
                            Circular No.                                             Circular name
----------------------------------------------------------------------------------------------------------------
2710.6..............................................................  Section 15 Accounting and Reporting
                                                                       Release Number 1.
2710.7..............................................................  Section 15 Accounting and Reporting
                                                                       Release Number 2.
4715.1A.............................................................  Human Resource Programs (Section 20)
                                                                       Application and Project Management
                                                                       Guidelines.
7008.1A.............................................................  Financial Capacity Policy.
7020.1..............................................................  Cross-Border Leasing Guidelines.
9045.1..............................................................  New Freedom Program Guidance and
                                                                       Application Instructions.
9050.1..............................................................  The Job Access and Reverse Commute (JARC)
                                                                       Program Guidance and Application
                                                                       Instructions.
----------------------------------------------------------------------------------------------------------------

    Under the Administrative Procedure Act (APA) (5 U.S.C. 553(b)), an 
agency may waive the normal notice and comment procedure if it finds, 
for good cause, that it would be impracticable, unnecessary, or 
contrary to the public interest. Additionally, 5 U.S.C. 553(d) provides 
that an agency may waive the 30-day delayed effective date upon finding 
of good cause.
    Circulars 2710.6 and 2710.7 are interpretations of the uniform 
system of accounts and records and reporting system required by Section 
15 of the Urban Mass Transportation Act of 1964 (UMTA Act), as amended, 
that was replaced by the Uniform Systems of Accounts (USOA). FTA finds, 
for good cause, that notice and comment for cancelling this guidance is 
unnecessary because the USOA was subject to notice and comment at 81 FR 
70260. Further, the delayed effective date is unnecessary because the 
cancellation was already made effective by the adoption of the USOA.
    Circular 4715.1A provides guidance on applying for Federal 
financial assistance and managing projects awarded under Section 20 of 
the UMTA Act, which was codified under the FAST Act at 49 U.S.C. 5314. 
FTA is

[[Page 33021]]

cancelling this circular because human resource grants are now covered 
under Circular 6100.1E, Research, Technical Assistance, and Training 
Programs: Application Instructions and Program Management Guidelines, 
which was published in the Federal Register (78 FR 47514) on August 13, 
2014 with a request for public comment. FTA finds, for good cause, that 
notice and comment for cancelling this circular is unnecessary because 
it was replaced by guidance that was subject to notice and comment. 
Further, the delayed effective date is unnecessary because the 
cancellation was already made effective by the notice of availability 
of the Circular 6100.1E at 80 FR 19396.
    Circular 7008.1A defines the basis upon which FTA will make the 
determination of financial capacity of grantees required under 49 
U.S.C. 5309 and in reviewing Transportation Improvement Plans (TIPs). 
Additionally, the circular provides guidance for grantees making the 
required self-certifications of financial capacity under 49 U.S.C. 
5307. FTA is cancelling this circular because these programs are now 
covered under Circular 9030.1E, Urbanized Area Formula Program: Program 
Guidance and Application Instructions, which was published on January 
16, 2014 (79 FR 2930) and addressed comments received during the 
development of the circular. FTA finds, for good cause, that notice and 
comment for cancelling this circular is unnecessary because it was 
replaced by guidance that was subject to notice and comment. Further, 
the delayed effective date is unnecessary because the cancellation was 
already made effective by the publication of the notice of availability 
in the Federal Register.
    Circular 7020.1 sets forth cross-border leasing guidelines, which 
allow grantees to lease FTA-funded transit equipment from a foreign 
entity. However, the American Jobs Creation Act of 2004 eliminated the 
tax benefits associated with such transactions, thereby rendering the 
vast majority of cross-border leases unprofitable. Thus, FTA is 
cancelling this circular, which is no longer utilized. FTA finds, for 
good cause, that notice and comment for cancelling this circular is 
unnecessary because it is outdated and unutilized. Similarly, the 
delayed effective date is unnecessary because the circular is no longer 
in use.
    Circulars 9045.1 and 9050.1 include guidance and application 
instructions for the New Freedom Program and the Job Access and Reverse 
Commute Program. Both programs were repealed by MAP-21. Therefore, FTA 
is cancelling the corresponding circulars. FTA finds, for good cause, 
that notice and comment for cancelling these circulars is unnecessary 
because these programs are no longer authorized. The statutory language 
does not require interpretation to carry out its intent, and comments 
cannot alter the guidance given the explicit mandate. Further, the 
delayed effective date is unnecessary because the cancelation of the 
circulars was already made effective by statute.
    Accordingly, FTA finds good cause under 5 U.S.C. 553(b)(3)(B) and 
(d)(3) to waive notice and opportunity for comment and the delayed 
effective date for all cancelled circulars.

B. Policy Priorities

    As FTA implements its programs, it is particularly focused on the 
following policy priority areas.
1. Safety
    Federal transit law requires States with rail transit systems 
operating within their jurisdictions to establish a State Safety 
Oversight (SSO) program that must be certified by the FTA by April 15, 
2019 (49 U.S.C. 5329(e)). The FTA is prohibited by law (49 U.S.C. 
5329(e)(3)) from obligating any funds to any transit agency within a 
State that fails to obtain certification by the deadline. The FTA 
recommends that States submit their complete SSO program certification 
applications no later than September 30, 2018. For more information on 
the certification requirements, please visit the FTA website: 
www.transit.dot.gov/regulations-and-guidance/safety/transit-safety-oversight-tso.
2. Positive Train Control (PTC)
    On May 31, 2017, FTA and the Federal Railroad Administration (FRA) 
jointly announced the allocation of $197 million for projects to 
install positive train control (PTC) systems on commuter railroads and 
other passenger-rail related facilities. As authorized under Section 
3028 of the Fixing America's Surface Transportation (FAST) Act, these 
funds are available to assist in financing the installation of PTC 
systems required under 49 U.S.C. 20157. All funding allocated under 
this program has been obligated ahead of the September 30, 2018 
statutory deadline. Costs associated with the installation of PTC are 
also eligible under FTA's formula programs, including the Urbanized 
Area Formula Program (49 U.S.C. 5307) and the State of Good Repair 
Program (49 U.S.C. 5337).
3. Automation
    Transit automation is a critical area of emerging technology with 
the capability to enhance and transform public transportation. FTA is 
developing a transit automation research initiative as one of the 
mobility innovation projects to explore the value and challenges of 
transit automation innovative technologies. FTA is currently exploring 
the use of automation technologies in transit bus operations. Key 
research activities include developing a transit automation strategic 
plan; growing stakeholder partnerships/engagements to increase 
understanding of transit automation use cases; fielding demonstrations 
to identify promising solutions; and exploring the human factors 
associated with adoption of transit automation approaches. Potential 
benefits of transit bus automation may include: Increased passenger/
operator safety; operational efficiencies; expanded transit capacity; 
fuel efficiencies; service effectiveness; and rider satisfaction. More 
information on Shared Mobility can be found at: https://www.transit.dot.gov/regulations-and-guidance/shared-mobility-faqs-eligibility-under-fta-grant-programs.
4. Value Capture
    Current law includes a definition of ``value capture'' to mean 
``recovering the increased property value to property located near 
public transportation resulting from investments in public 
transportation.'' (49 U.S.C. 5302(24)). Value capture financing 
strategies include, but are not limited to, land value taxes, tax 
increment financing, special assessment districts, transportation 
utility fees, development impact fees, negotiated extractions, transit-
oriented development, air rights, and joint development. FTA encourages 
the use of value capture strategies that contribute to the operation, 
maintenance, or expansion of public transportation services. Revenue 
generated by value capture is considered by FTA as local funding and 
can be used as the local share towards the funding of capital projects 
and operating costs eligible under Chapter 53 of title 49, United 
States Code. FTA is updating its program circulars and website to 
include additional guidance on the use of value capture financing 
strategies.
5. Transit Asset Management Plans
    A transit provider's initial Transit Asset Management (TAM) plan 
must be completed no later than October 1, 2018. A provider may submit 
in writing to FTA a request to extend this deadline. FTA must receive a 
request to extend the deadline before the deadline occurs and will 
consider all requests on a case-by-case basis. See 49 CFR part

[[Page 33022]]

625 for more information about the requirements for TAM plans.
6. Bus Testing (49 U.S.C. 5318)
    The Federal Transit Administration (FTA) is required to maintain a 
bus testing facility to test bus models purchased with Federal funding 
assistance. Any new model of a vehicle/bus to be used in public 
transportation revenue service and purchased with FTA funds must be 
tested at this bus testing facility. Fees for bus testing are shared: 
FTA funds 80 percent of the fees and the entity having the vehicle 
tested pays 20 percent of the fees.
    In 2016, FTA issued a regulation to implement minimum performance 
standards, a scoring system, and a pass/fail threshold for new model 
transit buses procured with FTA financial assistance authorized under 
49 U.S.C. Chapter 53 (49 CFR part 655). The standards and scoring 
system address the following categories: Structural integrity, safety, 
maintainability, reliability, fuel economy, emissions, noise, and 
performance. Buses must meet a minimum performance standard in each of 
these categories to receive an overall passing score and be eligible 
for purchase using FTA financial assistance. Buses can achieve higher 
scores with higher performance in each category, and the final rule 
establishes a numerical scoring system based on a 100-point scale so 
that buyers can more effectively compare vehicles.
    The Consolidated Appropriations Act, 2018 provides $5 million for 
the operation and maintenance of the bus testing facility authorized 
under 49 U.S.C. 5318. This is a $2 million increase over previous 
annual appropriation amounts. Additionally, the Act provides an 
additional $2 million for certain grantees receiving funds under 49 
U.S.C. 5312(h) to operate and maintain a facility to conduct the 
testing of low or no emission vehicle new bus models using the 
standards established pursuant to section 5318.
    FTA's website has additional information, resources, and a link to 
sign up for email notices about the Bus Testing Program at: 
www.transit.dot.gov/research-innovation/bus-testing.

C. FY 2018 Competitive Program Funding

    FTA's competitive grants programs and the FY 2018 authorized 
funding levels are identified in the chart below. FTA selects projects 
for funding after issuance of a Notice of Funding Opportunity. 
Additional information about each competitive program is in Section III 
of this notice.

------------------------------------------------------------------------
                                                               2018
                                                            authorized
   FY 2018 competitive programs       Statute 49 U.S.C.    funding level
                                                           (in millions)
------------------------------------------------------------------------
Innovative Coordinated Access and   FAST Section 3006(b)           $3.25
 Mobility Grants.
Tribal Transit....................  5311(c)(1)(A).......             5.0
Grants for Buses and Bus            5339................          366.29
 Facilities Competitive Program.
Low or No Emission Grants           5339................           84.45
 Competitive Program.
Pilot Program TOD Planning........  MAP-21 Section                 10.00
                                     2005(b).
------------------------------------------------------------------------
Note: The Grants for Buses and Bus Facilities and Low or No Emission
  Grants programs received funding in addition to the authorized levels;
  $161,446,000 and $29,450,000, respectively.

IV. FY 2018 Program-Specific Information

A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))

    Section 5305(d) authorizes Federal funding to support a 
cooperative, continuous, and comprehensive planning program for 
transportation investment decision-making at the metropolitan area 
level. The specific requirements of metropolitan transportation 
planning are set forth in 49 U.S.C. 5303 and further explained in 23 
CFR part 450, as incorporated by reference in 49 CFR part 613, Planning 
Assistance and Standards. The State DOTs are the designated recipients 
of Metropolitan Planning Programs (MPP) and State Planning and Research 
Program (SPRP) funds allocated by FTA, which are then sub-allocated to 
Metropolitan Planning Organizations (MPOs) for planning activities that 
support the economic vitality of the metropolitan area. The Secretary 
has the discretion to award MPP and SPRP assistance to States, 
authorities of States, (MPOs), and local governmental authorities.
    Each MPO must establish specific performance targets against system 
performance measures issued by U.S. DOT), and use these in tracking 
progress towards attaining critical outcomes. The MPO must coordinate 
with States and transit providers in setting these targets. MPOs must 
provide a system performance report that evaluates progress in meeting 
the performance targets in comparison with the system performance 
identified in prior reports.
    MPP funding must support work resulting in balanced and 
comprehensive intermodal transportation planning for the movement of 
people and goods in the metropolitan area. Comprehensive transportation 
planning is not limited to transit planning or surface transportation 
planning, but also encompasses the relationships among land use and all 
transportation modes, without regard to the programmatic source of 
Federal assistance. MPP funds may be used for studies relating to 
management, mobility management, planning, operations, capital 
requirements, economic feasibility, performance-based planning, safety, 
and transit asset management. Funds may also be used to develop or 
update the metropolitan planning agreements. Funds may also be used to 
evaluate previously funded projects or to conduct peer reviews and 
exchanges of technical data, information, or assistance, among MPOs and 
other transportation planners. Funds may be also used for planning for 
multimodal transportation access to transit facilities; system 
planning: Scenario planning; corridor-level alternative analysis; 
development of federally required documents; safety, security and 
emergency transportation planning; coordinated public transit human 
services transportation planning; and public participation in the 
transportation planning, including the development of the Public 
Participation Plan. An exhaustive list of eligible work activities is 
provided in FTA Circular 8100.1C, Program Guidance for Metropolitan 
Planning and State Planning and Research Program Grants, dated 
September 1, 2008.
    For more information or questions on the Metropolitan Planning 
program, please contact Victor Austin at (202) 366-2996 or 
[email protected].

[[Page 33023]]

1. Authorized Amounts
    Federal transit law authorizes $112,664,897 in FY 2018 to provide 
financial assistance for metropolitan planning needs under Section 
5305.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$112,664,897 is available to the Metropolitan Planning Program (Section 
5305(d)) to support metropolitan transportation planning activities set 
forth in Section 5303. The total amount apportioned for the 
Metropolitan Planning Program to States for use by MPOs in urbanized 
areas (UZAs) is $112,101,573 as shown in the table below, after the 
deduction for oversight (authorized by Section 5338).

                      Metropolitan Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................    $112,664,897
Oversight Deductions....................................       (563,324)
                                                         ---------------
  Total Apportioned.....................................     112,101,573
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Of the amounts authorized in Section 5305, 82.72 percent is made 
available to the Metropolitan Planning Program. As a subset of the 
Metropolitan Planning Program funds, FTA apportions eighty percent to 
the states by statutory formula based on the most recent decennial 
Census for each State's UZA population. The remaining 20 percent is 
provided to the States based on an FTA administrative formula to 
address planning needs in larger, more complex UZAs. The amount 
published for each State includes this supplemental allocation.
4. Requirements
    The States allocate Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for planning projects included in a 
one or two-year program of planning work activities (the Unified 
Planning Work Program, or UPWP) that includes multimodal systems 
planning activities spanning both highway and transit planning topics. 
Each State has either reaffirmed or developed, in consultation with its 
MPOs, an allocation formula among MPOs within the State, based on the 
2010 Census. The allocation formula among MPOs in each State may be 
changed annually, but any change requires approval by the FTA Regional 
Office before grant approval. Program guidance for the Metropolitan 
Planning Program is found in FTA Circular 8100.1C, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 1, 2008.
5. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2018 plus three additional 
fiscal years. Funds apportioned in FY 2018 must be obligated in grants 
by September 30, 2021. Any FY 2018 apportioned funds that remain 
unobligated at the close of business on September 30, 2021, will revert 
to FTA for reapportionment under the Metropolitan Planning Program.
6. Other Program Information
    The planning programs provide funding and procedural requirements 
to metropolitan areas and States for multimodal transportation planning 
that is cooperative, continuous, and comprehensive, resulting in long-
range plans and short-range programs of projects that reflect 
transportation investment priorities. The planning programs are jointly 
administered by FTA and the Federal Highway Administration (FHWA), 
which provides additional funding. Several changes established by the 
FAST Act to Sections 5303 and 5304 are noted below:
    New emphasis is placed on intercity transportation, including 
intercity buses and intermodal facilities that support intercity 
transportation, and commuter vanpool providers. The selection and role 
of the transit representation on MPO policy boards in large urbanized 
areas is clarified. MPOs in urbanized areas designated as 
transportation management areas must include officials of agencies that 
administer or operate major modes of transportation, as well as 
representatives of public transit operators, on MPO policy boards.
    The representative of public transit shall be selected per the 
bylaws or enabling legislation of the MPO, and the representative of 
public transit may also serve as a representative of a local 
municipality on the MPO board. For additional information please 
reference the Final Rule on Statewide and Nonmetropolitan 
Transportation Planning and Metropolitan Transportation Planning (81 FR 
34050, May 27, 2016).
    The scope of the planning process adds two new planning factors, in 
addition to the eight pre-existing factors established under prior law. 
The two new factors are: (1) Improve the resiliency and reliability of 
the transportation system, and reduce the vulnerability of the existing 
transportation infrastructure to natural disasters, and (2) enhance 
travel and tourism. MPOs and State DOTs should provide public ports, 
intercity bus operators and employer-based commuting programs with a 
reasonable opportunity to comment on transportation plans. Plans must 
place greater emphasis on the congestion management process. MPOs that 
serve a Transportation Management Areas (TMAs) with a population of 1 
million or more must prepare a congestion management performance plan, 
while TMAs with a population less than 1 million may prepare a 
congestion management plan. MPOs that serve transportation management 
areas must address congestion management through a process that 
provides for safe and effective integrated management and operation of 
the multimodal transportation system based on cooperatively developed 
metropolitan-wide strategies.
    The long-range statewide transportation plan and metropolitan 
transportation plan must include a description of the performance 
measures and performance targets. State DOTs and MPOs are also required 
to provide a system performance report evaluating the condition and 
performance of the transportation system.
    In the Final Rule on Statewide and Nonmetropolitan Transportation 
Planning and Metropolitan Transportation Planning (81 FR 34050), FHWA 
and FTA make the statewide, metropolitan, and nonmetropolitan 
transportation planning regulations consistent with current statutory 
requirements. The final rule establishes the following: (1) A new 
mandate for States and MPOs to take a performance-based approach to 
planning and programming; (2) a new emphasis on the nonmetropolitan 
transportation planning process, by requiring States to have a higher 
level of involvement with nonmetropolitan local officials and providing 
a process for the creation of Regional Transportation Planning 
Organizations (RTPOs); (3) implementation of the aforementioned 
statutory requirement for a structural change to the membership of the 
larger MPOs; (4) a new framework for voluntary scenario planning; (5) a 
new authority for the integration of the planning and environmental 
review processes; and (6) a process for programmatic mitigation plans.
    Among the most significant changes is the new mandate for a 
performance-based planning process: MPOs and State DOTs must establish 
performance targets that address forthcoming U.S. DOT-issued national 
performance

[[Page 33024]]

measures that are based on the goals outlined in the legislation--
safety, infrastructure condition, congestion reduction, system 
reliability, economic vitality, environmental sustainability, reduced 
project delivery delays, transit safety, and transit asset management. 
MPOs also must coordinate their performance targets, to the maximum 
extent practicable, with performance targets set by FTA grantees under 
the new performance measure requirements for safety and state of good 
repair. Transportation Improvement Programs (TIPs) must include a 
description of the anticipated progress toward achieving the 
performance targets resulting from implementation of the TIP. After May 
27, 2018, a State's and MPO's long-range plans, STIPs, and TIPs must 
reflect performance targets and plans per the provisions of the final 
rule.

B. State Planning and Research Program (49 U.S.C. 5304 and 5305(e))

    This program provides financial assistance to States for statewide 
transportation planning and other technical assistance activities, 
including supplementing the technical assistance program provided 
through the Metropolitan Planning program and planning support for non-
urbanized areas. The specific requirements of Statewide transportation 
planning are set forth in 49 U.S.C. 5304 and further explained in 23 
CFR part 450 as referenced in 49 CFR part 613, Planning Assistance and 
Standards. State DOTs are required to reference performance measures 
and performance targets within the Statewide Planning process. This 
funding must support work resulting in balanced and comprehensive 
intermodal transportation planning for the movement of people and goods 
and has the same eligibilities as MPP funds.
    For more information or questions on the State Planning and 
Research program, please contact Victor Austin at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $23,535,414 in FY 2018, to provide 
financial assistance for statewide planning and other technical 
assistance activities under Section 5305. As specified in law, this 
represents the 17.28 percent of the amounts available for Section 5305 
that are allocated to the Statewide Planning and Research program.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$23,535,414 is for the State Planning and Research Program (Section 
5305(e)). The total amount apportioned for the State Planning and 
Research Program (SPRP) is $23,417,737 as shown in the table below, 
after the deduction for oversight (authorized by Section 5338).

                Statewide Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $23,535,414
Oversight Deductions....................................       (117,677)
                                                         ---------------
  Total Apportioned.....................................      23,417,737
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
3. Basis for Formula Apportionment
    Of the amount authorized for Section 5305, 17.28 percent is 
allocated to the State Planning and Research program. FTA apportions 
funds to States by a statutory formula that is based on the most recent 
decennial Census data available, specifically, the State's UZA 
population as compared to the UZA population of all States.
4. Requirements
    Funds are provided to States for Statewide transportation planning 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, performance-based planning, 
demonstrations, and management training. In addition, a State may 
authorize a portion of these funds to be used to supplement 
Metropolitan Planning funds allocated by the State to its UZAs, as the 
State deems appropriate. Program guidance for the State Planning and 
Research program is found in FTA Circular 8100.1C, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 1, 2008.
5. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2018 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2018 must 
be obligated in grants by September 30, 2021. Any FY 2018 apportioned 
funds that remain unobligated at the close of business on September 30, 
2021 will revert to FTA for reapportionment under the State Planning 
and Research program.

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

    The Urbanized Area Formula Program provides financial assistance to 
designated recipients in urbanized areas (UZAs) for capital investments 
in public transportation systems, planning, job access and reverse 
commute projects, and, in some cases, operating assistance. FTA 
apportions funds for this program through a statutory formula. Of the 
amount authorized for Section 5307 each year, $30 million is set aside 
for the competitive Passenger Ferry Grant Program (Ferry program), as 
authorized under 49 U.S.C. 5307(h). The Ferry program offers financial 
assistance to public ferry systems in urbanized areas for capital 
projects. Projects are selected annually through a funding competition. 
Additionally, 0.5 percent will be apportioned to eligible States for 
State Safety Oversight (SSO) Program grants, and 0.75 percent will be 
set aside for program oversight. Further information on the 0.5 percent 
apportionment to States for the State Safety Oversight Program is 
provided in section IV.M. of this notice.
    For more information or questions on the Urbanized Area Formula 
Program, contact Tara Clark at (202) 366-2623 or [email protected]. 
For more information on the Ferry Program, contact Vanessa Williams at 
(202) 366-4818 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $5,279,690,721 in FY 2018 to provide 
financial assistance for urbanized areas under Section 5307.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$5,279,690,721 is available for the Urbanized Area Formula program. The 
total amount apportioned to urbanized areas (UZAs) is $5,228,378,222, 
which includes the addition of amounts apportioned to UZAs pursuant to 
the Section 5340 Growing States and High-Density States Formula 
factors. This amount to UZAs excludes the set-aside of $30 million for 
the Ferry program, apportionments under the State Safety Oversight 
Program, and oversight (authorized by Section 5338), as shown in the 
table below:

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available.........................  a $4,726,907,174
Oversight Deduction...................................       -35,451,804
State Safety Oversight Program........................       -23,634,536
Ferry Discretionary Program...........................       -30,000,000
5340 High Density States..............................     b 282,825,570
5340 Growing States...................................     b 214,714,305
Reapportioned Funds...................................         1,816,904
                                                       -----------------

[[Page 33025]]

 
  Total Apportioned...................................     5,137,177,613
------------------------------------------------------------------------
a Includes 1.5 percent set-aside for Small Transit Intensive Cities
  Formula Table 3 displays the amounts apportioned under the Urbanized
  Area Formula Program.
b Includes technical corrections to fix FY 2017 errors.

3. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
statutory formulas. Congress established four separate formulas to 
apportion available funding: The Section 5307 Urbanized Area Formula 
Program formula, the Small Transit Intensive Cities (STIC) formula, the 
Growing States and High Density States formula, and a formula based on 
low-income population.
    Consistent with prior apportionment notices, Table 3 shows a total 
Section 5307 apportionment for each UZA, which includes amounts 
apportioned under each of these formulas. Detailed information about 
the formulas is provided in Table 4. For technical assistance purposes, 
the UZAs that receive STIC funds are listed in Table 6. FTA will 
provide breakouts of the funding allocated to each UZA under these 
formulas upon request to the FTA Regional Office.
    FTA has calculated dollar unit values for the formula factors used 
in the Urbanized Area Formula Program apportionment calculations. These 
values represent the amount of money each unit of a factor is worth in 
this year's apportionment. The unit values change each year, based on 
all data used to calculate the apportionments, as well as the amount 
appropriated by Congress for the apportionment. The dollar unit values 
for FY 2018 are displayed in Table 5. To replicate the basic formula 
component of a UZA's apportionment, multiply the dollar unit value by 
the appropriate formula factor (i.e., the population, population x 
population density), and when applicable, data from the NTD (i.e., 
route miles, vehicle revenue miles, passenger miles, and operating 
cost).
a. Section 5307--Urbanized Area Formula
    For UZAs between 50,000 and 199,999 in population, the Urbanized 
Area Formula is primarily based on population and population density. 
For UZAs with populations of 200,000 or more, the formula is based on 
population and population density, as well as a combination of bus 
revenue vehicle miles, bus passenger miles, bus operating costs, fixed 
guideway vehicle revenue miles, and fixed guideway route miles, either 
within the UZA or attributable to the UZA. The Urbanized Area Formula 
is defined in 49 U.S.C. 5336. Consistent with Section 5336(b), FTA has 
included 27 percent of the fixed guideway directional route miles and 
vehicle revenue miles from eligible urbanized area transit systems, but 
which were attributable to rural areas outside of the urbanized areas 
from which the system receives funds.
b. Small Transit Intensive Cities (STIC) Formula
    Under the STIC formula, FTA apportions 1.5 percent of the funds 
made available for Section 5307 to UZAs that are under 200,000 in 
population and have public transportation service that operates at a 
level equal to or above the industry average for UZAs with a population 
of at least 200,000, but not more than 999,999. STIC funds are 
apportioned based on six performance categories: Passenger miles 
traveled per vehicle revenue mile, passenger miles traveled per vehicle 
revenue hour, vehicle revenue miles per capita, vehicle revenue hours 
per capita, passenger miles traveled per capita, and passengers per 
capita. In FY 2019, the STIC set aside will increase from 1.5 percent 
to 2 percent.
    The data used to determine a UZA's eligibility under the STIC 
formula and to calculate the STIC apportionments was obtained from the 
NTD for the 2016 reporting year. Because performance data change with 
each year's NTD reports, the UZAs eligible for STIC funds and the 
amount each receives may vary each year. UZAs that received funding 
through the STIC formula for FY 2018 are listed in Table 6.
c. Section 5340--Growing States and High Density States Formula
    FTA also apportions funds to qualifying UZAs and States according 
to the Section 5340 Growing States and High Density States formula, as 
shown in Table 3. More information on this program and its formula is 
found in Section IV.P. of this notice.
d. Low-Income Population
    Of the amount authorized and appropriated for the Urbanized Area 
Formula Program in each year, 3.07 percent is apportioned based on low 
income population. As specified in statute, FTA apportions 75 percent 
of the available funds to UZAs with a population of 200,000 or more. 
Funds are apportioned based on the ratio of the number of low income 
individuals in each UZA to the total number of low income individuals 
in all urbanized areas of that size. FTA apportions the remainder of 
the funds (25 percent) to UZAs with populations of less than 200,000, 
per an equivalent formula. The low-income populations used for this 
calculation were based on the American Community Survey (ACS) data set 
for 2011-2015. This information is updated by the Census Bureau 
annually.
4. Requirements
    To comply with or maintain compliance with the Clean Air Act (CAA) 
or the Americans with Disabilities Act (ADA) of 1990, the maximum 
Federal share for the Urbanized Area Formula Program, including the 
Passenger Ferry Program, is 85 percent for the net project cost of 
acquiring vehicles (including clean-fuel or alternative fuel). The 
maximum Federal share is 90 percent of the net project cost for 
acquiring vehicle-related equipment or facilities (including clean-fuel 
or alternative-fuel vehicle-related equipment or facilities) for 
complying with or maintaining compliance with the CAA or ADA.
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1E, Urbanized Area Formula Program: Program Guidance 
and Application Instructions, dated January 16, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to the Urbanized Area Formula Grants 
program web page. FTA is in the process of updating the program 
circular to incorporate changes resulting from FAST Act amendments to 
49 U.S.C. 5307.
5. Period of Availability
    Funds made available under the Urbanized Area Formula Program are 
available for obligation during the year of apportionment plus five 
additional years. Accordingly, funds apportioned in FY 2018 must be 
obligated by September 30, 2023. Any FY 2018 apportioned funds that 
remain unobligated at the close of business on September 30, 2023 will 
revert to FTA for reapportionment under the Urbanized Area Formula 
Program.
    Funds allocated under the Passenger Ferry program follow the same 
period of availability as Section 5307. Accordingly, funds allocated in 
FY 2018 must be obligated by September 30, 2023. Any of the funds 
allocated in FY 2018 that remain unobligated at the close of business 
on September 30, 2023 will revert to FTA for reallocation under the 
Passenger Ferry program.

[[Page 33026]]

D. Fixed Guideway Capital Investment Grants Program (49 U.S.C. 5309)

    The Capital Investment Grants (CIG) Program includes four types of 
eligible projects: New Starts projects, Small Starts projects, Core 
Capacity Improvement projects, and Programs of Inter-related Projects. 
Funding is provided for construction of: (1) New fixed guideway systems 
or extensions to existing fixed guideway systems such as rapid rail 
(heavy rail), commuter rail, light rail, trolleybus (using overhead 
catenary), cable car, passenger ferries, and bus rapid transit 
operating on an exclusive transit lane for the majority of the corridor 
length during peak periods that also includes features that emulate the 
services provided by rail fixed guideway, including defined stations, 
traffic signal priority for public transit vehicles, and short headway 
bi-directional service for a substantial part of weekdays and weekends; 
(2) corridor-based bus rapid transit service that does not operate on 
an exclusive transit lane but includes features that emulate the 
services provided by rail fixed guideway, including defined stations, 
traffic signal priority for public transit vehicles, and short headway 
bi-directional services for a substantial part of weekdays; (3) 
projects that expand the capacity by at least 10 percent in an existing 
fixed guideway corridor that is at capacity today or will be in five 
years; and (4) programs of two or more interrelated projects as 
described above that have logical connectivity with one another and 
will all begin construction in a reasonable timeframe.
    For more information about the Capital Investment Grant program 
contact Elizabeth Day, Office of Capital Project Development, at (202) 
366-5159 or [email protected]. For information about published 
allocations contact Eric Hu, Office of Transit Programs, at (202) 366-
0870 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $2,301,785,760 in FY 2018, to 
provide financial assistance under Section 5309.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$2,650,010,000 is available to the Fixed Guideway Capital Investment 
Grants Program. The Consolidated Appropriations Act, 2018 requires of 
the amounts made available, $2,252,508,586 to be obligated by December 
31, 2019. The funds are allocated in the following manner: 
$1,506,910,000 for New Starts projects; $715,700,000 for Core Capacity 
projects; $400,900,000 for Small Starts projects; and $26,500,000 for 
Oversight. These amounts are based on allocating the $2.64 billion in 
new budget authority and $5.05 million from recovered and unobligated 
Section 5309 Bus and Bus Facilities funds that were appropriated from 
FY 2000 thru FY 2005. The total amount available for projects is 
$2,623,509,990 as shown in the table below, after the deduction for 
oversight (authorized by Section 5338).

            Fixed Guideway Capital Investment Grants Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available..........................   $2,650,010,000
Oversight Deduction....................................     (26,500,000)
                                                        ----------------
  Total Apportioned *..................................    2,623,510,000
------------------------------------------------------------------------
* Of the total amount apportioned, $2,252,508,586 shall be obligated by
  December 31, 2019.

3. Basis for Allocation
    Funds are allocated on a competitive basis and subject to program 
evaluation.
4. Requirements
    Projects become candidates for funding under the Capital Investment 
Grant Program by successfully completing steps in the process defined 
in Section 5309 and obtaining a satisfactory rating under the 
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. 
For programs of interrelated projects, the steps in the process depend 
on the combination of project types included.
5. Period of Availability
    The Fixed Guideway Capital Investment Grant program funds 
apportioned in this notice are available for obligation during FY 2018 
plus three additional fiscal years. Accordingly, funds apportioned in 
FY 2018 must be obligated in grants by September 30, 2021, except 
$2,252,508,586 that must be obligated by December 31, 2019. All funds 
must be disbursed by the recipient by September 30, 2026.

E. Formula Grants for the Enhanced Mobility of Seniors and Individuals 
With Disabilities Program (49 U.S.C. 5310)

    The Section 5310 Enhanced Mobility of Seniors and Individuals with 
Disabilities Program provides formula funding to states and urbanized 
areas for meeting the transportation needs of older adults and people 
with disabilities when the public transportation service provided is 
unavailable, insufficient, or inappropriate to meet these needs. The 
program aims to improve mobility for seniors and individuals with 
disabilities by removing barriers to transportation service and 
expanding transportation mobility options. The Pilot Program for 
Innovative Coordinated Access and Mobility Program (Pilot Program)--was 
established by Section 3006(b) of the FAST Act. The purpose of the 
program is to assist in financing innovative projects for the 
transportation disadvantaged that improve the coordination of 
transportation services and non-emergency medical transportation (NEMT) 
services, including, for example, the deployment of coordination 
technology, and projects that create or increase access to community 
One-Call/One-Click Centers.
    For more information or questions on the Enhanced Mobility of 
Seniors and Individuals with Disabilities program, please contact Kelly 
Tyler at (202) 366-3102 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $273,840,764 in FY 2018 to provide 
formula funding to states for meeting the transportation needs of older 
adults and people with disabilities. The law also authorizes $3.25 
million for the competitive Pilot Program.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$127,772,132 is available for projects under the Section 5310 formula 
program after the oversight deduction as shown in the table below.

Formula Grants for the Enhanced Mobility of Seniors and Individuals With
                          Disabilities Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................    $273,840,764
Oversight Deduction.....................................     (1,369,204)
                                                         ---------------
Total Apportioned (Formula).............................     272,471,560
Innovative Coordinated Access and Mobility Pilot Program       3,250,000
                                                         ---------------
  Total Apportioned.....................................     275,721,560
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Sixty percent of the funds are apportioned among designated 
recipients for urbanized areas with a population of 200,000 or more 
individuals. Twenty percent of the funds are apportioned among the 
States for urbanized areas with a population of at least 50,000 but 
less than 200,000.

[[Page 33027]]

Twenty percent of the funds are apportioned among the States for rural 
areas, defined as areas with a population less than 50,000. Census Data 
on Older Adults and People with Disabilities is used for the Section 
5310 program apportionments. FY 2018 Apportionments Table 8 displays 
the amounts apportioned under the Enhanced Mobility of Seniors and 
Individuals with Disabilities Program.
    Under the Section 5310 formula, funds are allocated using Census 
data on older adults (i.e., persons 65 and older) and people with 
disabilities. However, beginning in 2010, the Census Bureau stopped 
collecting this demographic information as part of its decennial 
census. Data on seniors and people with disabilities is now only 
available from the American Community Survey (ACS), which is conducted 
and published on a rolling basis. FTA's FY 2018 Section 5310 
apportionments incorporate ACS data published in December 2016. Data on 
seniors comes from the ACS 20111-2015 five-year data set, Table B01001, 
``Sex by Age.'' Data on persons with disabilities comes from the ACS 
2011 2015 five-year data set, Table S.1810, ``Disability 
Characteristics.''
4. Requirements
    At least 55 percent of program funds must be used on traditional 
Section 5310 projects such as buses and vans; wheelchair lifts, ramps, 
and securement devices; or transit-related information technology 
systems including scheduling/routing/one-call systems. Mobility 
management programs are also defined as capital projects for purposes 
of this provision. The acquisition of transportation services under a 
contract, lease, or other arrangement is also eligible; both the 
capital and operating costs associated with contracted service are 
eligible capital expenses for purposes of this provision. The capital 
eligibility of acquisition of services is limited to the Section 5310 
program. The remaining 45 percent of a recipient's 5310 funds may be 
used for capital expenses or operating assistance.
a. Eligible Recipients
    Eligible recipients include States for rural and small urban areas 
and designated recipients chosen by the Governor of the State for large 
urban areas; or a State or local governmental entity that operates a 
public transportation service. For urbanized areas less than 200,000 in 
population and in the rural areas, the State is the designated 
recipient for Section 5310. Current Section 5310 designations remain in 
effect until changed by the Governor of a State by officially notifying 
the appropriate FTA Regional Administrator of re-designation. A State 
or local governmental entity that operates a public transportation 
service may be a direct recipient for Section 5310 funds.
    For urbanized areas over 200,000 in population, the recipient 
charged with administering the Section 5310 Program must be officially 
designated in accordance with the planning process, by the Governor of 
a State, responsible local officials, and publicly owned operators of 
public transportation prior to grant award (See the definition of 
designated recipient, 49 U.S.C. 5302(4)). Designated recipients are 
responsible for administering the program. Eligible subrecipients 
include State or local governmental authorities, private nonprofit 
agencies, and operators of public transportation that receive a grant 
indirectly through a recipient. For the 55 percent of funds that must 
be used for capital projects, eligible subrecipients include private 
nonprofit organizations as well as State or local governmental 
authorities that are either approved by the State to coordinate 
services for seniors and people with disabilities, or which certify to 
the Governor that no nonprofit organizations are readily available in 
the area to provide the service.
b. Local Match
    Capital assistance is provided at 80 percent Federal share; 20 
percent local share. Operating assistance requires a 50 percent local 
match. Funds provided under other Federal programs (other than those of 
the DOT, except for the Federal Lands Transportation Program) may be 
used as local match for funds provided under Section 5310, and revenue 
from service contracts may be used as local match.
c. Planning and Consultation
    The coordinated planning provision requires that all projects be 
included in the local coordinated human service-public transportation 
plan. The plan must be developed and adopted with representation from 
seniors, individuals with disabilities, representatives of public, 
private, nonprofit transportation and human services providers, and 
other members of the public.
d. State and Project Management Plans
    States, designated recipients, and State or local governmental 
entities that operate a public transportation service that are 
responsible for implementing the Section 5310 program are required to 
document their approach to managing the program. The Management Plans 
serve as the basis for FTA management reviews of the program, and 
provide public information on the administration of the programs.
e. Program of Projects (POP)
    Designated recipients are required to develop a Program of Projects 
(POP) with the grant application and submit it to the FTA Regional 
Office. The POP should be developed with respect to the coordinated 
plan, long range plan, and the transportation improvement plan. For 
additional guidance in developing the required POP, see Chapter IV of 
the FTA Circular 9070.1G, Enhanced Mobility of Seniors and Individuals 
with Disabilities Program Guidance and Application Instructions, dated 
July 7, 2014.
5. Period of Availability
    The Enhanced Mobility of Seniors and Individuals with Disabilities 
program funds apportioned in this notice are available for obligation 
during FY 2018 plus two additional fiscal years. Accordingly, funds 
apportioned in FY 2018 must be obligated in grants by September 30, 
2020. Any FY 2018 apportioned funds that remain unobligated at the 
close of business on September 30, 2020, will revert to FTA for 
reapportionment among the States and urbanized areas.
6. Other Program Information
    A State may transfer apportioned funds between small urbanized 
areas and rural areas if it can certify that the needs are being met in 
the area to which the funds were originally apportioned. The State can 
transfer the funds (rural and small urbanized area) to any area within 
the state if a statewide program for Section 5310 is established. 
Section 5310 funds may not be transferred to other FTA programs. 
However, Section 5310 funds apportioned to large urbanized areas may 
not be transferred to other areas. Section 5310 program recipients may 
partner with meal delivery programs such as the Older Americans Act 
(OAA)-funded meal programs (to find local programs, visit: 
www.Eldercare.gov) and the USDA Summer Food Service Program http://www.fns.usda.gov/sfsp/summer-food-service-program-sfsp. Transit service 
providers receiving 5310 funds may coordinate and assist in providing 
meal delivery services on a regular basis if this does not conflict 
with the provision of transit services.
    Program Guidance is found in FTA Circular 9070.1G, Enhanced 
Mobility of Seniors and Individuals with Disabilities Program Guidance 
and Application Instructions, dated July 7,

[[Page 33028]]

2014. Section 3006(b) of the FAST Act created a new competitive pilot 
program for innovative coordinated access and mobility that is 
discussed above. The Federal share is 80 percent for capital projects. 
Local Match of 20 percent can come from other Federal (non-DOT) funds.

F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)

    The Formula Grants for Rural Areas program provides formula funding 
to States and Indian tribes for supporting public transportation in 
areas with a population of less than 50,000. Funding may be used for 
capital, operating, planning, job access and reverse commute projects, 
and State administration expenses. Eligible sub-recipients include 
State and local governmental authorities, Indian Tribes, private non-
profit organizations, and private intercity bus companies. Indian 
Tribes are also eligible direct recipients under the Formula Grants for 
Rural Areas program, both for funds apportioned to the States and for 
projects apportioned or selected to be funded with funds set aside from 
the Tribal Transit Program.
    For more information about the Formula Grants for Rural Areas 
program, please contact [Eacute]lan Flippin at (202) 366-3800 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $577,721,886 in FY 2018 to provide 
financial assistance for rural areas under the Formula Grants for Rural 
Areas program, including funds for Section 5340 Growing States.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$577,721,886 is for the Rural Area Programs. The total amount 
apportioned to the program is $659,737,385 as shown in the table below, 
after the additional appropriation of $85,243,672 for the Section 5340 
Growing States and oversight deduction (authorized by Section 5338).

                 Grants for Rural Areas Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................    $577,721,886
Oversight Deduction.....................................     (3,228,173)
5340 Growing States.....................................      85,243,672
                                                         ---------------
  Total Apportioned.....................................     659,737,385
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions the Formula Grants for Rural Areas program funds to 
states by a statutory formula using the latest available U.S. decennial 
census data. Most of the Formula Grants for Formula Grants for Rural 
Areas program funds (83.15 percent) are apportioned based on land area 
and population factors. In the first tier, no state may receive more 
than 5 percent of the amount apportioned based on land area. The 
remaining funds (16.85 percent) are apportioned based on land area, 
vehicle revenue miles, and low-income individual factors. In the second 
tier, no state may receive more than 5 percent of the amount 
apportioned based on land area, or more than 5 percent of the amounts 
apportioned for vehicle revenue miles. In addition to funds made 
available under Section 5311, FTA adds amounts apportioned based on 
rural population per the growing states formula factors of 49 U.S.C. 
5340 to the amounts apportioned to the states under the Section 5311 
formula. Before FTA apportions Section 5311 funds to the states, FTA 
subtracts funding from the total available amounts for the Appalachian 
Development Transportation Assistance Program, the Tribal Transit 
Program, the Rural Transportation Assistance Program (RTAP), and FTA 
oversight activities.
    Data from the National Transit Database (NTD) 2016 Report Year was 
used for this apportionment, including data from directly-reporting 
Indian tribes. Data from public transportation systems that reported as 
urbanized area systems, but that was not attributable to an urbanized 
area, was also included. The Formula Grants for Rural Areas program 
includes three takedowns: The Appalachian Development Public 
Transportation Assistance Program; the Rural Transit Assistance Program 
(RTAP); and the Tribal Transit Program. These separate programs are 
described in the sections that follow.
4. Requirements
    The Formula Grants for Rural Areas program provides funding for 
capital, operating, planning, job access and reverse commute projects, 
and administration expenses for public transit service in rural areas 
under 50,000 in population. The planning activities undertaken with 
Formula Grants for Rural Areas program funds are in addition to those 
awarded to the State under Section 5305 and must be used specifically 
for the needs of rural areas.
a. Intercity Bus Transportation
    Each State must spend no less than 15 percent of its annual Formula 
Grants for Rural Areas program apportionment for the development and 
support of intercity bus transportation, unless it can certify, after 
consultation with affected intercity bus service providers, that the 
intercity bus service needs of the State are adequately met. FTA 
encourages consultation with other stakeholders, such as communities 
affected by loss of intercity service. The cost of an unsubsidized 
portion of privately provided intercity bus service that connects 
feeder service, including all operating and capital costs of such 
service whether offset by revenue from such service may be used as in-
kind local match for the intercity bus projects. FTA is updating the 
Formula Grants for Rural Areas program circular to include this change.
b. State Administration
    States may elect to use up to 10 percent of their apportionment at 
100 percent Federal share to administer the Formula Grants for Rural 
Areas program and provide technical assistance to subrecipients. 
Technical assistance includes project planning, program and management 
development, public transportation coordination activities, and 
research the State considers appropriate to promote effective delivery 
of public transportation to rural areas.
c. Other Requirements
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
Formula Grants for Rural Areas program capital projects and 62.5 
percent of the sliding scale capital match ratio for operating 
projects.
    Each State prepares an annual program of projects, which must 
provide for fair and equitable distribution of funds within the States, 
including Indian reservations, and must provide for maximum feasible 
coordination with transportation services assisted by other Federal 
sources.
    Additional program guidance for the Formula Grants for Rural Areas 
program is found in FTA Circular 9040.1G, Formula Grants for Rural 
Areas: Program Guidance and Application Instructions, dated November 
24, 2014, and is supplemented by additional information that may be 
posted to FTA's web page.
5. Period of Availability
    The Formula Grants for Rural Areas program funds apportioned in 
this notice are available for obligation during FY 2018 plus two 
additional fiscal years. Accordingly, funds apportioned

[[Page 33029]]

in FY 2018 must be obligated in grants by September 30, 2020. Any FY 
2018 apportioned funds that remain unobligated at the close of business 
on September 30, 2020, will revert to FTA for reapportionment under the 
Formula Grants for Rural Areas program.
6. Other Program Information
    Revenue from the sale of advertising and concessions may be used as 
local match.

G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(3))

    This program provides funding to assist in the design and 
implementation of training and technical assistance projects, research, 
and other support services tailored to meet the needs of transit 
operators in rural areas.
    For more information about Rural Transportation Assistance Program 
(RTAP), please contact [Eacute]lan Flippin at (202) 366-3800 or 
[email protected].
1. Authorized Amounts
    There is a two percent takedown from the funds made available for 
RTAP. Of the two percent takedown, 15 percent is reserved for the 
National RTAP program. The remainder is available for allocation to the 
States.
    Federal Transit Law authorizes $12,912,692 in FY 2018 to provide 
technical assistance.
2. FY 2018 Funding Availability
    Under the Consolidated Appropriations Act, 2018 $12,912,692 is 
available for the RTAP Program. The total amount apportioned for RTAP 
is $10,975,788 as shown in the table below, after the deduction for 
National RTAP.

                 Rural Transit Assistance Program (RTAP)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $12,912,692
National RTAP...........................................     (1,936,904)
                                                         ---------------
  Total Apportioned.....................................      10,975,788
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA allocates RTAP funds to the States by an administrative 
formula. First, FTA allocates $65,000 to each State ($10,000 to each 
territory), and then allocates the balance based on rural population in 
the 2010 census.
4. Requirements
    Eligible RTAP expenses include the design and implementation of 
training and technical assistance projects, research, and other support 
services tailored to meet the needs of transit operators in rural 
areas. States may use the funds to undertake research, training, 
technical assistance, and other support services to meet the needs of 
transit operators in rural areas. These funds are to be used in 
conjunction with a State's administration of the Formula Grants for 
Rural Areas program, but also may support the rural components of the 
Section 5310 program.
5. Period of Availability
    The RTAP funds apportioned in this notice are available for 
obligation during FY 2018 plus two additional fiscal years. 
Accordingly, funds apportioned in FY 2018 must be obligated in grants 
by September 30, 2020.
6. Other Program Information
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. In July of 2014, FTA awarded a 
cooperative agreement to the Neponset Valley Transportation Management 
Association to administer the National RTAP Program. The National RTAP 
projects are guided by a project review board that consists of managers 
of rural transit systems and State DOT RTAP programs. National RTAP 
resources also support the biennial Transportation Research Board 
National Conference on Rural Public and Intercity Bus Transportation 
and other research and technical assistance projects of a national 
scope.

H. Appalachian Development Public Transportation Assistance Program (49 
U.S.C. 5311(c)(2))

    This program is a take-down under the Formula Grants for Rural 
Areas program to provide additional funding to support public 
transportation in the Appalachian region. There are sixteen eligible 
States that receive an allocation under this provision. The State 
allocations are shown in the Formula Grants for Rural Areas program 
table posted on FTA's website on the FY 2018 Apportionments page.
    For more information about the Appalachian Development Public 
Transportation Assistance Program, please contact [Eacute]lan Flippin 
at (202) 366-3800 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $20 million in each of FY 2016 
through FY 2020 as a take-down under the Formula Grants for Rural Areas 
program to support public transportation in the Appalachian region.
2. FY 2018 Funding Availability
    Under the Consolidated Appropriations Act, 2018, $20 million is 
available.

    Appalachian Development Public Transportation Assistance Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $20,000,000
                                                         ---------------
  Total Apportioned.....................................      20,000,000
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions the funds using percentages established under 
Section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV 
of title 40). Allocations are based in general on each State's 
remaining estimated need to complete eligible sections of the 
Appalachian Development Highway System as determined from the latest 
percentages of available cost estimates for completion of the System. 
Such cost estimates are produced at approximate five-year intervals. 
Allocations contain upper and lower limits in amounts determined by the 
Commission and are made in accordance with legislative instructions.
4. Requirements
    Funds apportioned under this program may be used for purposes 
consistent with the Formula Grants for Rural Areas program to support 
public transportation in the Appalachian region. Funds can be applied 
for in the State's annual Formula Grants for Rural Areas program grant.
    Appalachian program funds that cannot be used for operating may be 
used for a highway project under certain circumstances. States should 
contact their regional office if they intend to request a transfer. 
Additional information about the requirements for this section can be 
found in Chapter VII of FTA Circular 9040.1G, Formula Grants for Rural 
Areas: Program Guidance and Application Instructions, dated November 
24, 2014.
5. Period of Availability
    The Appalachian program funds apportioned in this notice are 
available for obligation during FY 2018 plus two additional fiscal 
years, consistent with that established for the Formula Grants for 
Rural Areas program.

I. Formula Grants for Public Transportation on Indian Reservations 
Program (49 U.S.C. 5311(j))

    The Public Transportation on Indian Reservations Program, or Tribal 
Transit Program (TTP), totals $35 million, of

[[Page 33030]]

which $30 million is for a formula program and $5 million is for a 
competitive grant program. It is funded as a takedown from funds made 
available for the Formula Grants for Rural Areas program. Formula 
factors include vehicle revenue miles and the number of low-income 
individuals residing on tribal lands (defined as American Indian Areas, 
Alaska Native Areas, and Hawaiian Home Lands). Eligible direct 
recipients are Federally recognized Indian tribes and Alaskan Native 
Villages providing public transportation in rural areas. The TTP funds 
are allocated for grants to eligible recipients for any purpose 
eligible under Formula Grants for Rural Areas program, which includes 
capital, operating, planning, and job access and reverse commute 
projects.
    For more information about the Tribal Transit Program contact 
Douglas Moore, Office of Transit Programs at (202) 366-0876 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $35 million in FY 2018 ($30 million 
for formula and $5 million for the competitive program) to provide 
assistance to the tribes. Under the Consolidated Appropriations Act, 
2018, $30 million is available through September 30, 2018 for the 
formula program and $5 million for the competitive program.
2. FY 2018 Funding Availability
    In FY 2018, $30 million is for the formula program as shown below.

 Formula Grants for Public Transportation on Indian Reservations Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $30,000,000
                                                         ---------------
Total Apportioned.......................................      30,000,000
------------------------------------------------------------------------


 Public Transportation on Indian Reservations Program Competitive Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................      $5,000,000
                                                         ---------------
Total Apportioned.......................................       5,000,000
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Funding is allocated by formula and distributed to eligible Indian 
tribes providing public transportation on tribal lands. The formula 
apportionment shown in Table 10 is based on a statutory formula which 
includes three tiers. Tiers 1 and 2 are based on data reported to NTD 
by Indian tribes; Tier 3 is based on 2010-2014 American Community 
Survey data. The three tiers for the formula are: Tier 1--50 percent 
based on vehicle revenue miles reported to the NTD; Tier 2--25 percent 
provided in equal shares to Indian tribes reporting at least 200,000 
vehicle revenue miles to the NTD; Tier 3--25 percent based on Indian 
tribes providing public transportation on tribal lands (American Indian 
Areas, Alaska Native Areas, and Hawaiian Home Lands) on which more than 
1,000 low income individuals reside. If more than one eligible tribe 
provides public transportation services on tribal lands in a single 
Tribal Statistical Area, and the tribes cannot determine how to 
allocate Tier 3 funds, FTA will allocate the funds based on the 
relative portion of transit (as defined by unlinked passenger trips) 
operated by each tribe, as reported to the National Transit Database.
4. Requirements
    Formula funds apportioned under this program can be used for 
purposes consistent with the Formula Grants for Rural Areas program to 
support public transportation on Indian Reservations in rural areas. 
Funds allocated under the competitive program must be used consistent 
with the tribe's proposal and the allocation notice published in the 
Federal Register, which is used to announce the selected projects. 
Eligible recipients under both the competitive and formula program 
include federally-recognized Indian tribes or Alaska native villages, 
groups, or communities as identified by the U.S. Department of the 
Interior Bureau of Indian Affairs (BIA). A tribe must have the legal, 
financial and technical capabilities to receive and administer Federal 
funds.
    Section 5335 requires NTD reporting for all recipients of Section 
5311 funds. This reporting requirement continues to apply to the Tribal 
Transit Program. Tribes that provide public transportation in rural 
areas are reminded to report annually so they are included in the TTP 
formula apportionments. To be considered in the FY 2018 formula 
apportionments, tribes should have submitted their reports to the NTD 
no later than April 30, 2016; voluntary reporting to the NTD is also 
encouraged. Additionally, to be considered for the FY 2019 formula 
apportionment funds, tribes need to submit their reports to the NTD no 
later than April 30, 2017. Tribes needing assistance with reporting to 
the NTD should contact the NTD Helpline at 1-888-252-0936 or 
[email protected].
5. Period of Availability
    The TTP program funds apportioned in this notice are available for 
obligation during FY 2018 plus two additional fiscal years. 
Accordingly, funds apportioned in FY 2018 must be obligated in grants 
by September 30, 2020. Any FY 2018 apportioned funds that remain 
unobligated at the close of business on September 30, 2020, will revert 
to FTA for reapportionment under the TTP program.
6. Other Program Information
    Section 207 of title 23, United States Code establishes a Tribal 
Transportation Self-Governance Program (Self Governance Program). The 
Self Governance Program will establish specific criteria for 
determining eligibility for a tribe to participate in the program. A 
Negotiated Rulemaking to implement this program in consultation with 
tribal representatives and other interested stakeholders is under 
development.
    The funds set aside for the TTP are not meant to replace or reduce 
funds that Indian tribes receive from States through the Formula Grants 
for Rural Areas program but are to be used to enhance public 
transportation on Indian reservations and transit serving tribal 
communities. Funds allocated to Indian tribes by the States may be 
included in the State's Formula Grants for Rural Areas program 
application or maybe awarded by FTA in a grant directly to the Indian 
tribe. FTA encourages Indian tribes intending to apply to FTA as direct 
recipients to contact the appropriate FTA Regional Office at the 
earliest opportunity.
    All TTP grantees must comply with all applicable Federal statutes, 
regulations, executive orders, FTA circulars, and other Federal 
requirements in carrying out the project supported by the FTA grant. To 
assist tribes with understanding these requirements, FTA regularly 
conducts Tribal Transit Technical Assistance Workshops. FTA has also 
expanded its technical assistance to tribes receiving funds under this 
program. In FY 2015, FTA implemented the Tribal Transit Technical 
Assistance Assessments initiative. Through these assessments, FTA 
collaborates with tribal transit leaders to review processes and 
identify areas in need of improvement and then assist with solutions to 
address these needs--all in a supportive and mutually beneficial 
manner. These assessments include discussions of compliance areas 
pursuant to the Master Agreement, a site visit, promising practices 
reviews, and technical assistance from FTA and its contractors. FTA 
will post information about upcoming workshops to its website and will 
disseminate information about the reviews through

[[Page 33031]]

its Regional offices. FTA has regional tribal transit liaisons in each 
of the FTA Regional Offices that are available to assist tribes with 
applying for and managing FTA grants. Tribes are encouraged to work 
directly with their regional tribal transit liaison.

J. Public Transportation Innovation (49 U.S.C. 5312)

    Public Transportation Innovation is FTA's research program with the 
overarching statutory goal to improve public transportation. The law 
specifies research focus areas, including providing more effective and 
efficient public transportation service; mobility management; system 
capacity; advanced vehicle design; asset maintenance; construction and 
project management; environment and energy efficiency; and safety 
improvements. FTA may make grants, enter contracts, cooperative 
agreements, and other agreements to carry out the research, 
development, demonstration, and deployment projects, including research 
and technology of national significance to public transportation.
    Within this section are three distinct programs: (a) A Research, 
Development, Demonstration, Deployment, & Evaluation program (49 U.S.C. 
5312(b-e)); (b) a Low or No Emission Vehicle Component Assessment 
Program (LoNo-CAP) (49 U.S.C. 5312(h)); and (c) a Transit Cooperative 
Research Program (49 U.S.C. 5312(i)). Eligible recipients can be 
departments, agencies, and governmental agencies, including Federal 
Laboratories; state and local entities; providers of public 
transportation; private or non-profit organizations; institutions of 
higher education; and technical community colleges--each program area 
has specific requirements relating to the type of organization that may 
receive a grant or enter an agreement.
    The types of research eligible for funding are broad, and include 
opportunities to enhance public transportation operational 
effectiveness and efficiency; improve services; leverage new types of 
vehicle technologies; utilize transformative technologies to improve 
public transportation; field new mobility models; and support increased 
safety.
    For more information about the Public Transportation Innovation 
program, contact Edwin Rodriguez, Office of Research, Demonstration and 
Innovation at (202) 366-0671 or [email protected].
    For more information on the LoNo-CAP program, please contact Sam 
Yimer at (202) 366-1321 or [email protected] or visit: https://www.transit.dot.gov/research-innovation/lonocap.
1. Authorized Amounts
    Federal transit law authorizes $28 million in contract authority 
for FY 2018 for the Public Transportation Innovation program and an $20 
million subject to congressional additional appropriations.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$28,000,000 is for the Public Transportation Innovation program. The 
total amounts apportioned to each subcomponent of the program is shown 
below in the table.

                Public Transportation Innovation Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Research, Development, Demonstration, Deployment, &          $20,000,000
 Evaluation.............................................
Low or No Emission Vehicle Component Testing............       3,000,000
Transit Cooperative Research Program (TCRP).............       5,000,000
                                                         ---------------
  Total Apportioned.....................................      28,000,000
------------------------------------------------------------------------

3. Basis for Allocation
    Public Transportation Innovation funds are allocated according to 
the authorized purposes and amounts described above, and then remaining 
amounts are subject to competitive allocations where not specifically 
authorized. The Secretary may make grants and enter contracts, 
cooperative agreements, and other agreements for research, development, 
demonstration, and deployment projects, and evaluation of research and 
technology of national significance to public transportation, that the 
Secretary determines will improve public transportation. For FY 2018, 
FTA intends to fund projects and activities consistent with its 
research priorities of mobility innovation, infrastructure, and safety. 
Projects may be selected through Notices of Funding Opportunity (NOFO), 
or Requests for Proposals (RFPs), or sole-sourced. FTA awards to a 
diverse set of recipients and issues different types of research 
agreements, including grants, cooperative agreements, contracts, or 
interagency agreements. Potential recipients can register to receive 
notification of funding availability under this program on Grants.gov.
    FTA awards an annual cooperative agreement to the National 
Academies of Science to administer the TCRP. FTA solicited proposals 
for the LoNo-CAP in Fall 2016. Awards were made to Auburn University 
and The Ohio State University in September 2017 for $1.5 million each. 
Both facilities expect to begin testing in the late December 2018/
January 2019 timeframe.
    Per the statute, FTA only considered proposals from ``institutions 
of higher education'' as defined in section 1002 of title 20, U.S.C., 
the Higher Education Act of 1965. Eligible institution(s) of higher 
education must have capacity to carry out transportation-related 
advanced component testing and evaluation, with laboratories capable of 
testing and evaluation, and direct access to or a partnership with a 
testing facility capable of emulating real-world circumstances to test 
low or no emission components.
    LoNo-CAP differs from the Bus Testing Program (Section 5318) in 
that LoNo-CAP testing is voluntary with a 50/50 shared fee structure 
(FTA pays 50 percent of the testing fees, the entity requesting the 
testing pays 50 percent of the fees). Additionally, LoNo-CAP will only 
test components, and it will not assign passing or failing scores. The 
LONO component testing performed under LoNo-CAP complements the Section 
5318 Bus Testing Program, under which FTA will continue to test 
complete buses as a condition of eligibility for FTA grant funding. 
Eligible activities under LoNo-CAP include testing and assessing 
voluntarily submitted LoNo components for transit buses, publishing the 
results of these LoNo component assessments, and preparing an annual 
report to Congress summarizing the results of the component 
assessments. For more information on the LoNo-CAP program, visit 
https://www.transit.dot.gov/research-innovation/lonocap.
Requirements
    Eligible expenses include activities involving (a) research, 
innovation, development, demonstration, deployment, evaluation; (b) low 
or no emission vehicle component testing; and (c) transit cooperative 
research.
    The Federal share of the cost of a project carried out under FTA's 
Research, Innovation, Development, Deployment, and Demonstration 
program shall not exceed 80 percent; the remaining 20 percent of the 
costs can be met with in-kind resources. In some cases, FTA may require 
a higher non-Federal share if FTA determines a recipient would obtain a 
clear and direct financial benefit from the project, or if the non-
Federal share is an evaluation factor under a competitive selection 
process.

[[Page 33032]]

    However, for the LoNo-CAP, the Government share is 50 percent; the 
remaining 50 percent of the costs will be paid by amounts recovered 
through the fees established by the testing facilities. There is no 
match requirement for the TCRP.
    Application instructions and program management guidelines are set 
forth in FTA Circular C 6100.1E, Technology Development and Deployment, 
``Research, Technical Assistance and Training Program: Application 
Instructions and Program Management Guidelines'' dated May 11, 2015.
    All research recipients are required to work with FTA to develop 
approved Statements of Work. FTA will be updating the Circular for the 
Research Program.
4. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
each project. If the funds are not obligated within that period of 
time, they revert to FTA for reallocation under the program.
5. Other Program Information
    FTA publishes an annual Research Report on projects, evaluations, 
and benefits of its research portfolio. The FY2017 report can be 
accessed on FTA's website at https://www.transit.dot.gov/research-innovation/fta-reports-and-publications. Section 6019(b) of the FAST 
Act establishes new requirements for annual modal research plans in 49 
U.S.C. 6501.
    For the new LoNo-CAP (5312(h)), FTA solicited proposals in Fall 
2016, finalized selections, and made two awards in 2017. LoNo-CAP 
differs from the Bus Testing Program (Section 5318) in that LoNo-CAP 
testing is voluntary; it will only test components, and it will not 
assign passing or failing scores. The LoNo component testing performed 
under LoNo-CAP complements the Section 5318 Bus Testing Program, under 
which FTA will continue to test complete buses as a condition of 
eligibility for FTA grant funding. Eligible activities under LoNo-CAP 
include testing and assessing voluntarily submitted Lo-No components 
for transit buses, publishing the results of these LoNo component 
assessments, and preparing an annual report to Congress summarizing the 
results of the component assessments.
    TCRP is a cooperative effort of three organizations: FTA; the 
National Academies, acting through the Transportation Research Board 
(TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit 
educational and research organization established by the American 
Public Transportation Association (APTA). FTA funds the TCRP through a 
cooperative agreement. The TCRP is governed by an independent board, 
the TCRP Oversight and Project Selection (TOPS) Committee. The TOPS 
Committee sets priorities to decide what research studies will be 
undertaken and annually selects projects. The FY 2018 selected projects 
can be found at http://onlinepubs.trb.org/onlinepubs/tcrp/docs/TCRP_AnnounceFY2018.pdf.
    For more information about TCRP, please contact Faith Hall at (202) 
366-9055 or [email protected].
    Pursuant to the Small Business Innovation Development Act, a 
portion of the 5312 funds must be set aside for the Department's Small 
Business Innovation Research Program (SBIR) to address high priority 
research that will demonstrate innovative, economic, accurate, and 
durable technologies, devices, applications, or solutions to 
significantly improve current transit-related service, including 
transit vehicle operation, safety, infrastructure and environmental 
sustainability, mobility, rider experience, or broadband communication. 
Information on current and past SBIR projects can be found on the DOT 
SBIR website: https://www.volpe.dot.gov/work-with-us/small-business-innovation-research.

K. Technical Assistance and Workforce Development (49 U.S.C. 5314)

    The Technical Assistance and Workforce Development program, 49 
U.S.C. 5314, has three types of programs: Technical assistance and 
standards development; human resources and training; and the National 
Transit Institute. FTA funds projects across these areas to achieve 
statutory goals to assist the public transportation industry to more 
effectively and efficiently provide public transportation service; 
development standards and best practices; provide specific technical 
assistance in several areas, including complying with the Americans 
with Disabilities Act and human services transportation coordination as 
well as meeting the transportation needs of older adults. Key focus 
areas for human resources and training are employment training; 
outreach to aid in recruiting public transportation workers, especially 
to increase employment for certain targeted groups; frontline workforce 
development; and advanced training for new and emerging technology 
areas such as low and no emission bus maintenance. The National Transit 
Institute's goal is to develop and conduct training and educational 
programs for Federal, State, and local transportation employees and 
others engaged in public transportation work.
    For more information or questions about the Technical Assistance 
and Workforce Development programs, please contact Edwin Rodriguez, 
Office of Research, Demonstration, and Innovation at (202) 366-0671 or 
[email protected].
1. Authorized Amounts
    Federal Transit law authorizes $9 million in contract authority for 
the Technical Assistance and Workforce Development Program and an 
additional $5 million subject to congressional appropriations.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, $14 
million is for the Technical Assistance and Workforce Development 
program as shown in the table below.

             Technical Assistance and Workforce Development
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $14,000,000
                                                         ---------------
Total Appropriated......................................      14,000,000
------------------------------------------------------------------------

3. Basis for Allocation
    Under the Technical Assistance and Workforce Development Program, 
funds are available for the NTI and to support the FTA and USDOT 
strategic plan for technical assistance, standards development, and 
workforce development. Projects may be selected through sole source, 
Notices of Funding Opportunity (NOFO) or Requests for Proposals (RFPs). 
Potential recipients can register to receive notification of funding 
availability under this program on Grants.gov. Once selected, FTA 
enters cooperative agreements, grants, contracts, or other agreements 
to award funds and manage the projects carried out under this section.
4. Requirements
    Eligible expenses include activities involving: (a) Technical 
assistance; (b) standards development; and (c) human resources and 
training, including workforce development programs and activities. 
Eligible technical assistance activities may include activities to 
support: (a) Compliance with the ADA; (b) compliance with coordinating 
planning and human services transportation; (c) meeting the 
transportation needs of elderly individuals; (d) increasing transit 
ridership in coordination with MPOs and other entities, particularly 
around

[[Page 33033]]

transit-oriented development; (e) addressing transportation equity with 
regard to the effect that transportation planning, investment, and 
operations have for low-income and minority individuals; (f) 
facilitating best practices to promote bus driver safety; (g) 
compliance with Buy America requirements and pre- and post-award 
audits; (h) assisting with the development and deployment of low and no 
emission vehicles or components for vehicles; (i) and other technical 
assistance activities that are necessary to advance the interests of 
public transportation.
    Eligible standards development activities include the development 
of voluntary and consensus-based standards and best practices by the 
industry including those needed for safety, fare collection, 
intelligent transportation systems, accessibility, procurement, 
security, asset management, operations, maintenance, vehicle 
propulsion, communications, and vehicle electronics.
    Eligible human resources and training activities include (a) 
employment training programs; (b) outreach programs to increase 
employment for veterans, females, individuals with disabilities, and 
minorities in public transportation; (c) research on public 
transportation personnel and training needs; (d) training and 
assistance for veteran and minority business opportunities; and (e) 
consensus-based national training standards and certifications in 
partnership with industry stakeholders. FTA funding directly allocated 
for these eligible purposes must be done through a competitive 
frontline workforce development program as required by Section 5314. 
Should FTA allocate funds for these purposes, it will advertise the 
available funding in a Notice of Funding Opportunity (NOFO) on 
Grants.gov and on its website. In the meantime, recipients of funds 
under Sections 5307, 5337, and 5339 may use 0.5 percent of their 
available funds to pay for workforce development activities (up to an 
80 percent Federal share). There is a separate eligibility to use 0.5 
percent of available funds under the sections above for training at the 
National Transit Institute.
    The Government's share of the cost of a project carried out using a 
grant under this section shall not exceed 80 percent. However, for the 
human resources and training, including the Innovative Public 
Transportation Frontline Workforce Development Program, the 
Government's share cannot exceed 50 percent. The Federal share for 
other types of awards will be stated in the agreement. In some cases, 
FTA may require a higher non-Federal share if FTA determines a 
recipient would obtain a clear and direct financial benefit from the 
project, or if the non-Federal share is an evaluation factor under a 
competitive selection process.
    The non-Government share of the cost of a project carried out under 
these sections (Technical Assistance and Standards and Technical 
Assistance and Training) may be derived from in-kind contributions as 
defined in the most current version of FTA Circular 5010, ``Award 
Management Guidelines'' found on FTA's Circular web page at http://www.fta.dot.gov/circulars. Application instructions and program 
management guidelines are set forth in FTA Circular 6100.1E, 
``Research, Technical Assistance and Training Programs: Application 
Instructions and Program Management Guidelines'' dated May 11, 2015.
    All recipients of Section 5314 funds are required to work with FTA 
to develop approved statements of work. There is no match requirement 
for the National Transit Institute.
5. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
each project. If the funds are not obligated within that time, they 
revert to FTA for reallocation under the program. However, the $5 
million of general funds for technical assistance and training funds 
appropriated by congress in the consolidated appropriations Act, 2018 
must be obligated by September 30, 2018 or no longer available and 
returned to the U.S. Treasury.
6. Other Program Information
    FTA publishes an annual report to Congress on the technical 
assistance and standards activities that receive assistance under this 
section. Additionally, FTA must report annually on the Frontline 
Workforce Development Program. FTA reports can be found on FTA's web 
page at www.transit.dot.gov.

L. Public Transportation Emergency Relief Program (49 U.S.C. 5324)

    FTA's Emergency Relief (ER) Program is authorized to provide 
funding for public transportation expenses incurred because of an 
emergency or major disaster. The Further Additional Supplemental 
Appropriations for Disaster Relief Requirements Act, 2018 (Division B, 
Subdivision 1 of Pub. L. 115-123) provides $330 million for this 
program for transit systems affected by Hurricanes Harvey, Irma, and 
Maria in 2017. FTA will provide more information about the allocation 
of these funds under a separate Federal Register notice.
    Funds appropriated for this program are used to assist in 
responding to a publicly declared emergency or disaster. Eligible 
expenses include emergency operating expenses, such as evacuations, 
rescue operations, and expenses incurred to protect assets in advance 
of a disaster, as well as capital projects to protect, repair, 
reconstruct, or replace equipment and facilities of a public 
transportation system that the Secretary determines is in danger of 
suffering serious damage or has suffered serious damage because of an 
emergency. Additionally, transit agencies in the affected areas may 
request relief from certain FTA administrative and regulatory 
requirements for costs incurred in support of evacuations, rescue 
efforts, and the efficient shut down and resumption of transit services 
during and after the storm. Requests for relief from these requirements 
may be submitted to FTA's Emergency Relief Docket at https://www.regulations.gov/. The docket number for calendar year 2018 is FTA-
2018-0001.
    FTA also encourages transit agencies in affected areas to become 
familiar with FTA's Emergency Relief Program Manual, available at 
transit.dot.gov/emergencyrelief. When funding is made available by 
Congress through FTA's Emergency Relief Program, or at FEMA's 
direction, FTA will work with agencies to assess the impacts of the 
storm, including emergency operations and any potential damages to 
transit rolling stock or facilities.
    Recipients of FTA funding affected by a declared emergency or 
disaster are also authorized to use funds apportioned under Sections 
5307 and 5311 for emergency purposes under the provisions of FTA's 
Emergency Relief Program. Recipients are advised that formula funds 
disbursed to a grantee for emergency purposes will not be replaced or 
restored if funding is subsequently made available through FTA under 
the ER Program or by the Federal Emergency Management Agency (FEMA).
    In the event of a disaster affecting a public transportation 
system, the affected recipient should contact its FTA Regional Office 
as soon as practicable to determine whether Emergency Relief Program 
funds are available, and to notify FTA that it plans to seek 
reimbursement for emergency operations and/or repairs that have already 
taken place or are in process. If Emergency Relief funds are 
unavailable, the recipient may seek reimbursement

[[Page 33034]]

from FEMA. Properly documented costs for which the grantee has not 
received reimbursement from FEMA may later be reimbursed by grants made 
either from Emergency Relief Program funding (if appropriated) or from 
Sections 5307 and 5311 program funding, once the eligible recipient 
formally applies to FTA for reimbursement and FTA determines that the 
expenses are eligible for emergency relief.
    More information on the Emergency Relief Program and FTA's response 
to Hurricane Sandy is available on the FTA website at https://www.transit.dot.gov/funding/grant-programs/emergency-relief-program/emergency-relief-program. For more information or questions on this 
program, please contact John Bodnar at (202) 366-9091 or 
[email protected].

M. State Safety Oversight Formula Program (49 U.S.C. 5329)

    The State Safety Oversight Formula Program provides funding to 
support States with rail fixed guideway public transportation systems 
(rail transit systems) to develop and carry out State Safety Oversight 
(SSO) Programs consistent with the requirements of 49 U.S.C. 5329. 
Federal transit law requires States with rail transit systems operating 
within their jurisdictions to establish a State Safety Oversight (SSO) 
program that must be certified by the Federal Transit Administration 
(FTA) by April 15, 2019. The FTA is prohibited by law from awarding any 
funds to any transit agency within a State that fails to obtain 
certification by the deadline. The FTA recommends that States submit 
their complete SSO program certification applications no later than 
September 30, 2018. For more information on the certification 
requirements, please visit the FTA Web: www.transit.dot.gov/regulations-and-guidance/safety/transit-safety-oversight-tso.
    For more information or questions on the Public Transportation 
Safety program, please contact Maria Wright at (202) 366-5922 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $23,634,536 in FY 2018 to provide 
funding to support States in developing and carrying out the SSO 
Program.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$23,634,536 is available for the State Safety Oversight (SSO) Formula 
program as shown in the table below.

                 State Safety Oversight Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................     $23,634,536
                                                         ---------------
Total Appropriated......................................      23,634,536
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA will continue to allocate funds to the States by an 
administrative formula, which is detailed in the Federal Register 
notice apportioning SSO Formula Grant Program FY 2013 and FY 2014 funds 
(Mar. 10, 2014). Grant funds for the SSO program are apportioned to 
eligible States using a three-tier formula based on statutory 
requirements, which apportion sixty percent (60 percent) of available 
funds based on rail transit system passenger miles (PMT), vehicle 
revenue miles (VRM), and directional route miles (DRM), twenty percent 
(20 percent) of available funds equally to each eligible State, and 
twenty percent (20 percent) based on the number of rail transit systems 
in each state.
4. Requirements
    FTA requires each applicant to demonstrate in its grant application 
that its proposed grant activities will develop, lead to, or carry out 
a State Safety Oversight program that meets the requirements under 49 
U.S.C. 5329(e). Grant funds may be used for program operational and 
administrative expenses, including employee training activities. Please 
see the Federal Register notice which apportioned SSO Formula Grant 
Program FY 2013 and FY 2014 funds (79 FR 13380, Mar. 10, 2014) for more 
information.
5. Period of Availability
    SSO Formula Grant Program funds are available for the year of 
apportionment plus two additional years. Any FY 2018 funds that remain 
unobligated at the close of business on September 30, 2020 will revert 
to FTA for reapportionment under the SSO Formula Grant Program.
6. Other Program Information
    Section 5329 authorizes FTA to temporarily assume oversight of a 
rail transit safety system, under certain circumstances. FTA also has 
the authority to issue restrictions and prohibitions to address unsafe 
conditions or practices. On August 11, 2016, FTA published a final rule 
to set procedures for FTA's administration of the Public Transportation 
Safety Program. The final rule provides procedures whereby FTA may: (1) 
Require a recipient to use Chapter 53 funds to correct safety 
violations identified by the Administrator or a State Safety Oversight 
Agency before such funds are used for any other purpose, or (2) 
withhold up to 25 percent of funds apportioned under 49 U.S.C. 5307 
from a recipient when the Administrator has evidence that the recipient 
has engaged in a pattern or practice of serious safety violations, or 
has otherwise refused to comply with the Public Transportation Safety 
Program, or any regulation or directive issued under those laws for 
which the Administrator exercises enforcement authority for safety.

N. State of Good Repair Program (49 U.S.C. 5337)

    The State of Good Repair Program provides financial assistance to 
designated recipients in Urbanized Areas (UZAs) with fixed guideway and 
high intensity motorbus systems for capital investments that maintain, 
rehabilitate, and replace aging transit assets and bring fixed guideway 
and high intensity motorbus systems into a state of good repair. FTA 
apportions funds for this program through a statutory formula using 
data reported to the National Transit Database (NTD).
    For more information or questions on the State of Good Repair 
program, please contact Eric Hu at (202) 366-0870 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $2,593,703,558 in FY 2018 for the 
State of Good Repair Program.
2. FY 2018 Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$2,993,703,558 is for the State of Good Repair Program. This amount 
includes additional funds appropriated in the amount of $400 million. 
The total amount apportioned is $2,963,766,522 after the deduction for 
oversight as shown in the table below.

                      State of Good Repair Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available..........................   $2,993,703,558
Oversight Deduction....................................     (29,937,036)
                                                        ----------------
  Total Apportioned....................................    2,963,766,522
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions State of Good Repair Program funds per a statutory 
formula. Funds are apportioned to urbanized areas with fixed guideway 
or high intensity motorbus systems that have been in operation for at 
least seven years. This means that only segments of fixed guideway and 
high intensity motorbus systems that entered revenue service on or 
before September 30, 2010

[[Page 33035]]

are included in the formula, as identified in the NTD. Funds 
apportioned to urbanized areas with fixed guideway are determined by 
two equal elements: (1) A fixed proportion, based on the proportion an 
urbanized area would have received in FY 2011 to the total amount 
apportioned to all urbanized areas in the FY 2011 Fixed Guideway 
Modernization program using the fixed guideway definition defined in 
prior law; and (2) a variable proportion, based on the proportion of 
vehicle revenue miles and directional route miles attributed to an 
urbanized area relative to all urbanized areas, with revenue miles 
weighted for 60 percent of this element and directional miles weighted 
for 40 percent of this element. Funds apportioned to urbanized areas 
with motorbus systems are 60 percent based on revenue miles and 40 
percent based on route miles that attributed to an urbanized area 
relative to all urbanized areas. The fixed guideway tier is apportioned 
97.15 percent of the total appropriation, and the remaining 2.85 
percent is apportioned to the high-intensity motorbus tier.
4. Requirements
    In addition to the program guidance found in the FTA Circular 
5300.1, ``State of Good Repair Grants Program: Guidance and application 
Instructions,'' all recipients must comply with the regulation at 49 
CFR part 625, issued under the authority of Section 5326 for the 
Transit Asset Management plan (TAM).
5. Period of Availability
    The State of Good Repair Program funds apportioned in this notice 
are available for obligation during FY 2018 plus three additional 
years. Accordingly, funds apportioned in FY 2018 must be obligated in 
grants by September 30, 2021. Any FY 2018 apportioned funds that remain 
unobligated at the close of business on September 30, 2021 will revert 
to FTA for reappointment under the State of Good Repair Program.
6. Other Program Information
    In July 2016, FTA published a Final Rule (49 CFR part 625) for 
Transit Asset Management (81 FR 48890, July 26, 2016). Grantees must 
have a TAM plan in place by October 1, 2018. Beginning in FY 2019 all 
projects funded under the State of Good Repair Program must appear in 
the investment prioritization of the grantee's TAM plan.

O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)

    The Grants for Buses and Bus Facilities Program provides financial 
assistance to states, local governmental entities that operate fixed 
route bus service, and designated recipients for capital investments in 
public transportation systems to replace, rehabilitate, lease, and 
purchase buses and related equipment and to construct bus-related 
facilities, including technological changes or innovations to modify 
low or no emission vehicles or facilities. Funding is provided through 
Section 5339(a) formula allocations and Section 5339(b) competitive 
grants. A sub-program, the Section 5339(c) Low- or No-Emission Vehicle 
Program, provides competitive grants for bus and bus facility projects 
that support low and zero-emission vehicles.
    For more information or questions on the Grants for Buses and Bus 
Facilities Formula Program, please contact John Bodnar at (202) 366-
9091 or [email protected]. For information or questions regarding the 
competitive Buses and Bus Facilities Infrastructure Investment Program 
please contact Mark G. Bathrick at (202) 366-9955 or 
[email protected]. For information or questions regarding the 
competitive Low or No Emissions Grant Program, contact Tara Clark at 
(202) 366-2623 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes, $445,519,476 for the formula 
program, $246,514,000 for the Bus competitive program, and $55,000,000 
for the Low or No Emissions program in FY 2018 to provide financial 
assistance for the Grants for Buses and Bus Facilities Program.
2. Funding Availability
    In FY 2018 under the Consolidated Appropriations Act, 2018, 
$654,623,476 is available for the Grants for Buses and Bus Facilities 
Formula Program, $84,450,000 for the Low or No Emission Grants 
(competitive) Program, and $407,960,000 for the Grants for Buses and 
Bus Facilities (competitive) Program. These amounts represent 
additional funds appropriated in the amount of $209,104,000; 
$29,450,000; and $161,446,000, respectively. The amounts apportioned 
after the 0.75 percent take-down for oversight are shown in the table 
below.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
              Grants for Buses and Bus Facilities (Formula)
------------------------------------------------------------------------
Total Appropriation (Formula) available.................    $654,623,476
Oversight Deduction.....................................     (4,909,676)
                                                         ---------------
  Total Apportioned (Formula)...........................    $649,713,800
------------------------------------------------------------------------
 Grants for Buses and Bus Facilities (Low or No Emission (Competitive))
------------------------------------------------------------------------
Total Appropriation (Low or No Emission) available......     $84,450,000
Total to be Allocated (Low or No Emission)..............     $84,450,000
------------------------------------------------------------------------
          Grants for Buses and Bus Facilities (Bus Competitive)
------------------------------------------------------------------------
Total Appropriation (Bus Competitive) available.........     492,410,000
Oversight Deduction.....................................     (3,693,075)
Low or No Emission Grants (Competitive).................    (84,450,000)
Allocation to Projects under FY 2017 Competition (April     (37,973,775)
 5, 2018)...............................................
                                                         ---------------
  Total to be Allocated (Bus Competition)...............    $366,293,150
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Section 5339(a) Buses and Bus Facilities Program formula funds are 
apportioned to States, territories, and designated recipients based on 
a statutory formula. Under the National Distribution, each State is 
allocated $3.5 million and each territory is allocated $1 million for 
use anywhere in the State or territory for fiscal years 2018. The 
remainder of the available funding is then apportioned to UZAs based on 
population, vehicle revenue miles, and passenger miles using the same 
apportionment formula and allocation process as the Urbanized Area 
Formula Program. Funds for UZAs under 200,000 in population are 
apportioned to the State for allocation to eligible recipients within 
such areas of the State at the Governor's discretion. Funds for UZAs 
with populations of 200,000 or more are apportioned directly to one or 
more designated recipient(s) within each UZA for allocation to eligible 
projects and recipients within the UZA.
    FTA allocates funds under the competitive Section 5339(b) and 
5339(c) programs on an annual basis based on a notice of funding 
opportunity, which contains detailed guidance on applicant eligibility, 
project eligibility, evaluation criteria, and application requirements.
4. Requirements
    Eligible recipients for Section 5339(a) formula grants include: (1) 
designated recipients that allocate funds to fixed route bus operators, 
and (2) States and local governmental entities that operate fixed route 
bus service. Eligible subrecipients include public agencies or private 
nonprofit organizations engaged

[[Page 33036]]

in public transportation, including those providing services open to a 
segment of the general public as defined by age, disability, or low 
income. The definition of eligible recipients applies to funding 
apportioned in previous fiscal years that remain available for 
obligation. The requirements of the Urbanized Area Formula Program 
apply to recipients of Section 5339 funds within an urbanized area. The 
requirements of Formula Grants for Rural Areas program apply to 
recipients of Section 5339 funds within rural areas.
    Under prior law, only designated recipients were eligible direct 
recipients of Section 5339(a) funds. Given that State and local 
government entities that operate fixed route service are now eligible 
direct recipients of Section 5339(a) funds, FTA does not require 
designated recipients to maintain program management plans (PMPs) if 
they do not manage any sub-awards of Section 5339 funds.
    For additional program requirements, refer to FTA Circular 5100, 
``Buses and Bus Facilities Formula Program: Guidance and Application 
Instructions.''
5. Period of Availability
    The Bus and Bus Facilities Program formula funds apportioned in 
this notice are available for obligation during FY 2018 plus three 
additional years. Accordingly, funds apportioned in FY 2018 must be 
obligated in grants by September 30, 2021. Any FY 2018 apportioned 
funds that remain unobligated at the close of business on September 30, 
2021 will revert to FTA for reapportionment under the Buses and Bus 
Facilities Formula Program. Competitive program funds authorized under 
Sections 5339(b) and 5339(c) follow the same period of availability and 
reapportionment policy.
6. Other Program Information
    Although it does not provide additional funding, as authorized 
under Section 5339(a)(9), FTA has established a pilot program to allow 
designated recipients in urbanized areas between 200,000 and 1 million 
in population to elect to pool their Buses and Bus Facilities Program 
formula allocations with other designated recipients within their 
respective states. The purpose of this provision is to allow for the 
transfer of formula funding within a State in a manner that supports 
the transit asset management plans of the participating designated 
recipients. A State that intends to participate in this pilot program 
beginning in FY 2019 (October 1, 2018) must submit a request to 
establish a State Pool to its FTA Regional Office by August 31, 2018. 
The request must identify the urbanized areas that will participate in 
the pool for FY 2019, and must include a letter from each urbanized 
area's participating designated recipient, and from any affected 
eligible recipients of Section 5339(a) funds within the urbanized area, 
indicating their intention to participate in this pooling provision for 
FY 2019. An urbanized area that participates in a State Pool must 
contribute its entire Section 5339(a) apportionment for the fiscal 
years in which it participates in the pool. For a multi-state area, 
designated recipient for a multistate area may participate in only one 
State Pool. FY 2019 is the last year that a State may establish a State 
Pool. For FY 2019, the request must specify the proposed distribution 
of the pooled funding and must provide a detailed explanation of how 
this distribution will support the transit asset management plans of 
each participating designated recipient, including any eligible 
recipients to which the designated recipient will allocate funding. 
Upon approval, FTA will make the requested amounts of program funding 
available to the urbanized areas as directed in the request. A State 
that elects to participate in this pilot program will be required to 
develop an allocation plan for the period of fiscal years 2019 and 2020 
that ensures that a designated recipient participating in the State's 
pool receives under the program an amount of funds that equals the 
amount of funds that would have otherwise been available to the 
designated recipient for that period pursuant to the formulas provided. 
The amounts in the State Pool will be apportioned separately from funds 
apportioned to the State under the Governor's Apportionment for 
urbanized areas under 200,000 in population, and will be made available 
directly by FTA to the participating urbanized areas, as directed in 
the approved allocation plan. An allocation plan may be revised for 
future fiscal years, if it remains compliant with the requirement to 
ensure equity over the period the pool is in effect. Approved requests 
to establish a State Pool for the specified UZAs will remain in effect 
until cancelled at the request of the State or one or more designated 
recipients. If a State or designated recipient elects to end its 
participation in this pooling provision in any future fiscal year, FTA 
will adjust the formula allocations so that the total amount that each 
affected urbanized area has received over the fiscal years in which it 
participated, plus the following apportionment, equals the amount it 
would have received over this period had it not participated in the 
State pool. Adjustments will be made using the formula apportionment 
factors used for each of the affected fiscal years. After the pools are 
determined, FTA will publish a supplementary table showing the 
participating UZAs, the State total, and the amounts for each UZA for 
FY 2019. In future years, the States must provide the amounts 
determined by August 31 (in an updated allocation plan), so that FTA 
can publish the breakdowns and make the funds available in the 
Apportionment Notice.

P. Growing States and High Density States Formula Factors (49 U.S.C. 
5340)

    Federal transit law authorizes the use of formula factors to 
distribute additional funds to the Section 5307 Urbanized Area Formula 
program and Section 5311 Formula Grants for Rural Areas program 
programs for growing states and high density states. FTA will continue 
to publish single urbanized and rural apportionments that show the 
total amount for Section 5307 and 5311 programs that includes Section 
5340 apportionments for these programs.
    For more information or questions on this program, please contact 
Tara Clark at (202) 366-2623 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $552,783,547 for apportionment in FY 
2018 for the Growing States and High Density States Formula factors.
2. FY 2018 Funding Availability
    Under the Consolidated Appropriations Act, 2018, $582,783,547 is 
for the Growing States and High Density States formula. This amount 
represents additional appropriated funds in the amount of $30 million.

         Growing States And High Density States Formula Factors
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Growing States..........................................    $286,132,747
High Density States.....................................     296,650,800
                                                         ---------------
  Total Apportioned.....................................     582,783,547
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Under the Growing States portion of the Section 5340 formula, FTA 
projects each State's 2025 population by comparing each State's 
apportionment year population (as determined by the Census Bureau) to 
the State's 2010 Census population and extrapolating to 2025 based on 
each State's rate of population growth between 2010 and the 
apportionment year. Each State receives a share of Growing States funds

[[Page 33037]]

based on its projected 2025 population relative to the nationwide 
projected 2025 population.
    Once each State's share is calculated, funds attributable to that 
State are divided into an urbanized area allocation and a non-urbanized 
area allocation on the basis of the percentage of each State's 2010 
Census population that resides in urbanized and non-urbanized areas. 
Urbanized Areas receive portions of their State's urbanized area 
allocation based on the 2010 Census population in that urbanized area 
relative to the total 2010 Census population in all urbanized areas in 
the State. These amounts are added to the Urbanized Area's Section 5307 
apportionment.
    The States' rural area allocation is added to the allocation that 
each State receives under the Formula Grants for Rural Areas program.
    The High Density States portion of the Section 5340 formula are 
allocated to urbanized areas in States with a population density equal 
to or greater than 370 persons per square mile. Based on this threshold 
and 2010 Census data, the States that qualify are Maryland, Delaware, 
Massachusetts, Connecticut, Rhode Island, New York and New Jersey. The 
amount of funds provided to each of these seven States is allocated on 
the basis of the population density of the individual State relative to 
the population density of all seven States. Once funds are allocated to 
each State, funds are then allocated to urbanized areas within the 
States based on an individual urbanized area's population relative to 
the population of all urbanized areas in that State.

Q. Washington Metropolitan Area Transit Authority Grants

    Section 601 of the Passenger Rail Investment and Improvement Act of 
2008 (PRIIA) authorized an aggregate amount of $1.5 billion to be 
available in increments over 10 fiscal years beginning in fiscal year 
2009 to assist the Washington Metropolitan Transit Authority (WMATA) in 
implementing its Capital Improvement Program and preventive maintenance 
projects.
    For more information or questions on the Washington Metropolitan 
Area Transit Authority Grants program, please contact Eric Hu at (202) 
366-0870 or [email protected] or Corey Walker at (202) 219-3562 or 
[email protected].
1. Authorized Amounts
    Section 601 of PRIIA authorizes $150,000,000 in FY 2018.
2. FY 2107 Funding Availability
    Under the Consolidated Appropriations Act, 2018, $150,000,000 is 
available. The total amount available is $ 148,500,000 after the 
deduction for oversight as shown in the table below.

          Washington Metropolitan Area Transit Authority Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available...........................    $150,000,000
Oversight Deduction.....................................     (1,500,000)
                                                         ---------------
  Total Apportioned.....................................     148,500,000
------------------------------------------------------------------------

3. Basis for Allocation
    The funding is authorized under Section 601, Authorization for 
Capital and Preventive Maintenance Projects for Washington Metropolitan 
Area Transit Authority, of the Passenger Rail Investment and 
Improvement Act of 2008, (Pub. L. 110-432) Division B, Title VI.
4. Requirements
    Grants may be provided for capital and preventive maintenance 
expenditures for WMATA after it has been determined that WMATA has 
placed the highest priority on investments that will improve the safety 
of the system, including, but not limited, to fixing the track signal 
system, replacing 1000 series railcars, installing guarded turnouts, 
buying equipment for wayside worker protection, and installing rollback 
protection on cars that are not equipped with the safety feature. FTA 
will communicate further program requirements directly to WMATA. The 
maximum Federal share for each project shall be for 50 percent of the 
net project cost of the project, and matching funds shall be provided 
in cash from sources other than Federal funds or revenues from the 
operation of public transportation systems.
5. Period of Availability
    Funds appropriated for WMATA under Section 601 PRIIA shall remain 
available until expended.

V. FTA Policy and Procedures for FY 2018 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

1. Caution to New Grantees
    While FTA provides pre-award authority to incur expenses before 
grant award for formula programs, it recommends that first-time grant 
recipients NOT utilize this automatic pre-award authority without 
verifying with the appropriate FTA Regional Office that all pre-
requisite requirements have been met. Commonly, a new grantee may 
misunderstand pre-award authority conditions and be unaware of all of 
the applicable FTA requirements that must be met in order to be 
reimbursed for project expenditures incurred in advance of grant award. 
FTA programs have specific statutory requirements that are often 
different from those for other Federal grant programs with which new 
grantees may be familiar. If funds are expended for an ineligible 
project or activity, or for an eligible activity but at an 
inappropriate time (e.g., prior to NEPA completion), FTA will be unable 
to reimburse the project sponsor and, in certain cases, the entire 
project may be rendered ineligible for FTA assistance.
2. Policy
    FTA provides pre-award authority to incur expenses before grant 
award for certain program areas described below. This pre-award 
authority allows grantees to incur certain project costs before grant 
approval and retain the eligibility of those costs for subsequent 
reimbursement after grant approval. The grantee assumes all risk and is 
responsible for ensuring that all conditions are met to retain 
eligibility. This pre-award spending authority permits an eligible 
grantee to incur costs on an eligible transit capital, operating, 
planning, or administrative project without prejudice to possible 
future Federal participation in the cost of the project. In this 
notice, FTA provides pre-award authority through the authorization 
period of the FAST Act (October 1, 2015 through September 30, 2020) for 
capital assistance under all formula programs, so long as the 
conditions described below are met. FTA provides pre-award authority 
for planning and operating assistance under the formula programs 
without regard to the period of the authorization. All pre-award 
authority is subject to conditions and triggers stated below:
a. Operating, Planning, or Administrative Assistance
    FTA does not impose additional conditions on pre-award authority 
for operating, planning, or administrative assistance under the formula 
grant programs. Grantees may be reimbursed for expenses incurred before 
grant award so long as funds have been expended in accordance with all 
Federal requirements, would have been allowable if incurred after the 
date of award, and the grantee is otherwise eligible to receive the 
funding. In addition to cross-cutting Federal grant

[[Page 33038]]

requirements, program specific requirements must be met. For example, a 
State of Good Repair Formula Grants project on or after October 1, 2018 
must be included in the grantee's certified TAM Plan, a planning 
project must be included in a Unified Planning Work Program (UPWP); a 
Section 5310 project be included in a coordinated public transit-human 
services transportation plan (coordinated plan) and selected by the 
designated recipient before incurring expenses and expenditures on 
State Administration expenses under State Administered programs must be 
consistent with the State Management Plan (as defined in FTA Circular 
9040.1G, Chapter 6). Designated recipients for Section 5310 have pre-
award authority for the ten percent of the apportionment they may use 
for program administration.
b. Transit Capital Projects
    For transit capital projects, the date that costs may be incurred 
varies depending on the type of activity and its potential to have a 
significant impact on the human and natural environment as described 
under conditions in section 3 below. Before an applicant may incur 
costs when pre-award authority has not been granted, it must first 
obtain a written Letter of No Prejudice (LONP) from FTA. To obtain an 
LONP, a grantee must submit a written request accompanied by adequate 
information and justification to the appropriate FTA regional office, 
as described in section 4 below.
c. Public Transportation Innovation, Technical Assistance and Workforce 
Development
    Unless provided for in an announcement of project selections, pre-
award authority does not apply to Public Transportation Innovation 
projects or Section 5314 Technical Assistance and Workforce Development 
projects. Before an applicant may incur costs for activities under 
these programs, it must first obtain a written Letter of No Prejudice 
(LONP) from FTA. To obtain an LONP, a grantee must submit a written 
request accompanied by adequate information and justification to the 
appropriate FTA headquarters office. Information about LONP procedures 
may be obtained from the appropriate headquarters office.
3. Conditions
    The conditions under which pre-award authority may be utilized are 
specified below:
    a. Pre-award authority is not a legal or implied commitment that 
the subject project will be approved for FTA assistance or that FTA 
will obligate Federal funds. Furthermore, it is not a legal or implied 
commitment that all items undertaken by the applicant will be eligible 
for inclusion in the project.
    b. All FTA statutory, procedural, and contractual requirements must 
be met.
    c. No action will be taken by the grantee that prejudices the legal 
and administrative findings that the Federal Transit Administration 
must make in order to approve a project.
    d. Local funds expended by the grantee after the date of the pre-
award authority will be eligible for credit toward local match or 
reimbursement if FTA later makes a grant or grant amendment for the 
project. Local funds expended by the grantee before the date of the 
pre-award authority will not be eligible for credit toward local match 
or reimbursement. Furthermore, the expenditure of local funds or the 
undertaking of certain activities that would compromise FTA's ability 
to comply with Federal environmental laws (e.g., project implementation 
activities such as land acquisition, demolition, or construction before 
the date of pre-award authority) may render the project ineligible for 
FTA funding.
    e. The Federal amount of any future FTA assistance awarded to the 
grantee for the project will be determined based on the overall scope 
of activities and the prevailing statutory provisions with respect to 
the Federal/local match ratio at the time the funds are obligated.
    f. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    g. When a grant for the project is subsequently awarded, the grant 
and the Federal Financial Report in TrAMS must indicate the use of pre-
award authority.
    h. Environmental Requirements.
    All Federal environmental grant requirements must be met at the 
appropriate time for the project to remain eligible for Federal 
funding. Designated recipients may incur costs for design and 
environmental review activities for all projects from the date of the 
authorization of formula funds or the date of the announcement of the 
competitive allocations of funds for the project.
    For projects that qualify for a categorical exclusion (CE) pursuant 
to 23 CFR 771.118(c), designated recipients may start activities and 
incur costs for property acquisition, demolition, construction, and 
acquisition of vehicles, equipment, or construction materials from the 
date of the authorization of formula funds or the date of the 
announcement of the competitive allocation of funds for the project. 
FTA recommends that a grant applicant considering a (CE) pursuant to 23 
CFR 771.118(c) contact FTA's Regional Office for assistance in 
determining the appropriate environmental review process and level of 
documentation necessary before incurring costs for property 
acquisition, demolition, construction, and acquisition of vehicles, 
equipment, or construction materials. If FTA subsequently finds that a 
project does not qualify for this CE, it will be ineligible for FTA 
assistance. FTA encourages grant applicants to contact FTA's Regional 
Office before exercising pre-award authority for projects to which it 
believes a CE at 23 CFR 771.118(c)(8), (9), (10), (12), or (13) 
applies.
    For all other non-Capital Investment Grant projects that do not 
qualify for a CE under 23 CFR 771.118(c), grant applicants may take 
action and incur costs for property acquisition, demolition, 
construction, and acquisition of vehicles, equipment, or construction 
materials from the date that FTA completes the environmental review 
process required by NEPA and its implementing regulations, 23 U.S.C. 
139, and other environmental laws by its issuance of a Section 
771.118(d) categorical exclusion determination, a Finding of No 
Significant Impact (FONSI), or a Record of Decision (ROD).
    i. Planning and other requirements.
    Formula funds must be authorized or appropriated and earmarked 
project allocations published or announced before pre-award authority 
can be considered.
    The requirement that a project be included in a locally-adopted 
Metropolitan Transportation Plan, the metropolitan transportation 
improvement program and federally-approved statewide transportation 
improvement program (23 CFR part 450) must be satisfied before the 
grantee may advance the project beyond planning and preliminary design 
with non-federal funds under pre-award authority. If the project is 
located within an EPA-designated non-attainment or maintenance area for 
air quality, the conformity requirements of the Clean Air Act, 40 CFR 
part 93, must also be met before the project may be advanced into 
implementation-related activities under pre-award authority triggered 
by the completion of the NEPA process. For a planning project to have 
pre-award authority, the planning project must be included in a MPO-
approved Unified Planning Work Program (UPWP) that has been coordinated 
with the State.

[[Page 33039]]

    j. Federal procurement procedures, as well as the whole range of 
applicable Federal requirements (e.g., Buy America, Davis-Bacon Act, 
and Disadvantaged Business Enterprise) must be followed for projects in 
which Federal funding will be sought in the future. Failure to follow 
any such requirements could make the project ineligible for Federal 
funding. In short, this increased administrative flexibility requires a 
grantee to make certain that no Federal requirements are circumvented 
through the use of pre-award authority.
    k. All program specific requirements must be met. For example, 
projects under Section 5310 must comply with specific program 
requirements, including coordinated planning.
    Before incurring costs, grantees are strongly encouraged to consult 
with the appropriate FTA Regional office regarding the eligibility of 
the project for future FTA funds and for questions on environmental 
requirements, or any other Federal requirements that must be met.
4. Pre-Award Authority for the Fixed Guideway Capital Investment Grants 
Program
    Projects proposed for Section 5309 Capital Investment Grant (CIG) 
program funds are required to follow a multi-step, multi-year process 
defined in law. For New Starts and Core Capacity projects, this process 
includes three phases: project development (PD), engineering, and 
construction. For Small Starts projects, this process includes two 
phases: PD and construction. After receiving a letter from the project 
sponsor requesting entry into the PD phase, FTA must respond in writing 
within 45 days whether the information was sufficient for entry. If 
FTA's correspondence indicates the information was sufficient and the 
New Starts, Small Starts or Core Capacity project enters PD, FTA 
extends pre-award authority to the project sponsor to incur costs for 
PD activities. PD activities include the work necessary to complete the 
environmental review process and as much engineering and design 
activities as the project sponsor believes are necessary to support the 
environmental review process. Upon completion of the environmental 
review process with a ROD, FONSI, or CE determination by FTA for a New 
Starts, Small Starts, or Core Capacity Improvement project, FTA extends 
pre-award authority to project sponsors to incur costs for as much 
engineering and design as needed to develop a reasonable cost estimate 
and financial plan for the project, utility relocation, and real 
property acquisition and associated relocations for any property 
acquisitions not already accomplished as a separate project for 
hardship or protective purposes or right-of-way under 49 U.S.C. 
5323(q).
    For Small Starts projects, upon completion of the environmental 
review process and confirmation from FTA that the overall project 
rating is at least a Medium, FTA extends pre-award authority for 
vehicle purchases. Upon receipt of a letter notifying a New Starts or 
Core Capacity project sponsor of the project's approval into the 
engineering phase, FTA extends pre-award authority for vehicle 
purchases as well as any remaining engineering and design, demolition, 
and procurement of long lead items for which market conditions play a 
significant role in the acquisition price. The long lead items include, 
but are not limited to, procurement of rails, ties, and other 
specialized equipment, and commodities.
    Please contact the FTA Regional Office for a determination of 
activities not listed here, but which meet the intent described above. 
FTA provides this pre-award authority in recognition of the long-lead 
time and complexity involved with purchasing vehicles as well as their 
relationship to the ``critical path'' project schedule. FTA cautions 
grantees that do not currently operate the type of vehicle proposed in 
the project about exercising this pre-award authority. FTA encourages 
these sponsors to wait until later in the process when project plans 
are more fully developed. FTA reminds project sponsors that the 
procurement of vehicles must comply with all Federal requirements, 
including, but not limited to, competitive procurement practices, the 
Americans with Disabilities Act, Disadvantaged Business Enterprise 
program requirements and Buy America. FTA encourages project sponsors 
to discuss the procurement of vehicles with FTA in regard to Federal 
requirements before exercising pre-award authority. Because there is 
not a formal engineering phase for Small Starts projects, FTA does not 
extend pre-award authority for demolition and procurement of long lead 
items. Instead, this work must await receipt of a construction grant 
award or an expedited grant agreement.
a. Real Property Acquisition
    As noticed above, FTA extends pre-award authority for the 
acquisition of real property and real property rights for fixed 
Guideway Capital Investment Grant projects (New or Small Starts or Core 
Capacity) upon completion of the environmental review process for that 
project. The environmental review process is completed when FTA signs 
an environmental Record of Decision (ROD) or Finding of No Significant 
Impact (FONSI), or makes a Categorical Exclusion (CE) determination. 
With the limitations and caveats described below, real estate 
acquisition may commence, at the project sponsor's risk. For FTA-
assisted projects, any acquisition of real property or real property 
rights must be conducted in accordance with the requirements of the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act (URA) and its implementing regulations, 49 CFR part 24. This pre-
award authority is strictly limited to costs incurred: (i) To acquire 
real property and real property rights in accordance with the URA 
regulation; and (ii) to provide relocation assistance in accordance 
with the URA regulation. This pre-award authority is limited to the 
acquisition of real property and real property rights that are 
explicitly identified in the final environmental impact statement 
(FEIS), environmental assessment (EA), or CE document, as needed for 
the selected alternative that is the subject of the FTA-signed ROD or 
FONSI, or CE determination. This pre-award authority regarding property 
acquisition that is granted at the completion of the environmental 
review process does not cover site preparation, demolition, or any 
other activity that is not strictly necessary to comply with the URA, 
with one exception--namely when a building that has been acquired, has 
been emptied of its occupants, and awaits demolition poses a potential 
fire safety hazard or other hazard to the community in which it is 
located, or is susceptible to reoccupation by vagrants. Demolition of 
the building is also covered by this pre-award authority upon FTA's 
written agreement that the adverse condition exists. Pre-award 
authority for property acquisition is also provided when FTA makes a CE 
determination for a protective buy or hardship acquisition in 
accordance with 23 CFR 771.117(d)(12). Pre-award authority for property 
acquisition is also provided when FTA completes the environmental 
review process for the acquisition of right-of-way as a separate 
project in accordance with 49 U.S.C. 5323(q). When a tiered 
environmental review in accordance with 23 CFR 771.111(g) is used, pre-
award authority is NOT provided upon completion of the first-tier 
environmental document except when the Tier-1 ROD or FONSI signed by 
FTA explicitly provides such pre-award authority for a particular 
identified acquisition. Project sponsors should use pre-award authority 
for real

[[Page 33040]]

property acquisition relocation assistance with a clear understanding 
that it does not constitute a funding commitment by FTA. FTA provides 
pre-award authority upon completion of the environmental review process 
for real property acquisition and relocation assistance to maximize the 
time available to project sponsors to move people out of their homes 
and places of business, in accordance with the requirements of the URA, 
but also with maximum sensitivity to the circumstances of the people so 
affected.
b. Reimbursement of Costs Incurred Under Pre-Award Authority
    Although FTA provides pre-award authority for property acquisition, 
long lead items, demolition, utility relocation, and vehicle purchases 
upon completion of the environmental review process, FTA does not award 
Federal funding for these activities conducted under pre-award 
authority until the project receives a Capital Investment Grants 
program construction grant. This is to ensure that Federal funds are 
not risked on a project whose advancement into construction is not yet 
assured.
c. National Environmental Policy Act (NEPA) Activities
    NEPA requires that certain projects proposed for FTA funding 
assistance be subjected to a public and interagency review of the need 
for the project, its environmental and community impacts, and 
alternatives to avoid and reduce adverse impacts. Projects of more 
limited scope also need a level of environmental review (to determine 
whether there are significant environmental impacts) or confirmation 
that a categorical exclusion (CE) applies. FTA's regulation titled 
``Environmental Impact and Related Procedures,'' at 23 CFR part 771 
states that the costs incurred by a grant applicant for the preparation 
of environmental documents requested by FTA are eligible for FTA 
financial assistance (23 CFR 771.105(e)). Accordingly, FTA extends pre-
award authority for costs incurred to comply with NEPA regulations and 
to conduct NEPA-related activities, effective as of the earlier of the 
following two dates: (1) The date of the Federal approval of the 
relevant STIP or STIP amendment that includes the project or any phase 
of the project, or that includes a project grouping under 23 CFR 
450.216(j) that includes the project; or (2) the date that FTA approves 
the project into the project development phase of the CIG program. The 
grant applicant must notify the FTA Regional Office to initiate the 
Federal environmental review process in accordance with the ``Dear 
Colleague'' letter from the FTA Administrator dated February 24, 2011. 
NEPA-related activities include, but are not limited to, public 
involvement activities, historic preservation reviews, Section 4(f) 
evaluations, wetlands evaluations, endangered species consultations, 
and biological assessments. This pre-award authority is strictly 
limited to costs incurred to conduct the NEPA process and associated 
engineering, and to prepare environmental, historic preservation and 
related documents. When a New Starts, Small Starts, or Core Capacity 
project is granted pre-award authority for the environmental review 
process, the reimbursement for NEPA activities conducted under pre-
award authority may be sought at any time through Section 5307 
(Urbanized Area Formula Program) or the flexible highway programs (STP 
and CMAQ). Reimbursement from the Section 5309 CIG program for NEPA 
activities conducted under pre-award authority is provided only for 
expenses incurred after entry into the project development phase and 
only once a construction grant agreement is signed. As with any pre-
award authority, FTA reimbursement for costs incurred is not 
guaranteed.
d. Other Activities Requiring Letter of No Prejudice (LONP)
    Except as discussed in paragraphs i through iii above, a CIG 
project sponsor must obtain a written LONP from FTA before incurring 
costs for any activity not covered by pre-award authority. To obtain an 
LONP, an applicant must submit a written request accompanied by 
adequate information and justification to the appropriate FTA Regional 
Office, as described in B below.

B. Letter of No Prejudice (LONP) Policy

1. Policy
    LONP authority allows an applicant to incur costs on a project 
utilizing non-Federal resources, with the understanding that the costs 
incurred subsequent to the issuance of the LONP may be reimbursable as 
eligible expenses or eligible for credit toward the local match should 
FTA approve the project at a later date. LONPs are applicable to 
projects and project activities not covered by automatic pre-award 
authority. The majority of LONPs will be for Section 5309 Capital 
Investment Grants program projects undertaking activities not covered 
under automatic pre-award authority. LONPs may be issued for formula 
funds beyond the life of the current authorization or FTA's extension 
of automatic pre-award authority; however, the LONP is limited to a 
five-year period, unless otherwise authorized in the LONP. Receipt of 
Federal funding under any program is not implied or guaranteed by an 
LONP.
2. Conditions and Federal Requirements
    The conditions and requirements for pre-award authority specified 
in section V.4.ii and V.4.iii above apply to all LONPs. Because project 
implementation activities may not be initiated before completion of the 
environmental review process, FTA will not issue an LONP for such 
activities until the environmental review process has been completed 
with a ROD, FONSI, or CE determination.
3. Request for LONP
    Before incurring costs for project activities not covered by 
automatic pre-award authority, the project sponsor must first submit a 
written request for an LONP, accompanied by adequate information and 
justification, to the appropriate regional office and obtain written 
approval from FTA. FTA approval of an LONP is determined on a case-by-
case basis. Federal funding under the Fixed Guideway Capital Investment 
Grants program is not implied or guaranteed by an LONP. Specifically, 
when requesting an LONP, the applicant shall provide the following 
items:
    a. Description of the activities to be covered by the LONP.
    b. Justification for advancing the identified activities. The 
justification should include an accurate assessment of the consequences 
to the project scope, schedule, and budget should the LONP not be 
approved.
    c. Allocated level of risk and contingency for the activity 
requested.

C. FY 2018 Annual List of Certifications and Assurances

    The FY 2018 Certifications and Assurances and Master Agreement must 
be used for all grants and cooperative agreements awarded in FY 2018. 
All recipients with active projects are required to sign the FY 2018 
Certifications and Assurances within 90 days of publication.

D. Civil Rights Requirements

1. Civil Rights Overview
    Recipients must carry out provisions of the Americans with 
Disabilities act (ADA) of 1990, Section 504 of the Rehabilitation Act 
of 1973, as amended, and the U.S. DOT's implementing regulations at 49 
CFR parts 27, 37, 38, and 39. FTA's ADA Circular (4710.1) provides 
guidance for carrying out the

[[Page 33041]]

regulatory requirements of the ADA. In addition, recipients must 
regularly prepare and submit civil rights program plans and reports to 
establish voluntary compliance and document policies and practices in 
the areas of Title VI, DBE and EEO. The current status of civil rights 
programs can be found on each recipient's Civil Rights Information page 
of TrAMS. New program plans and program updates can be submitted there 
as well. Prior to submitting an application for funding, recipients 
should consult with FTA Circulars and guidance and submit the following 
programs, as applicable:
    a. Title VI of the Civil Rights Act of 1964: The U.S. DOT's Title 
VI implementing regulations are found in 49 CFR part 21. FTA's Title VI 
Circular (4702.1B) provides guidance for carrying out the regulatory 
requirements.
    b. Disadvantaged Business Enterprise (DBE) program and triennial 
goal: The U.S. DOT's DBE implementing regulations are found in 49 CFR 
part 26 and provide guidance for carrying out the regulatory 
requirements and developing the triennial DBE goal.
    c. Title VII of the Civil Rights Act of 1964, Equal Employment 
Opportunity (EEO): The U.S. DOT's EEO implementing regulations are 
found in 49 CFR part 21. FTA's EEO Circular (4704.1A) provides guidance 
for carrying out the regulatory requirements.
2. Title VI of the Civil Rights Act of 1964
    Recipients in urbanized areas of 200,000 or more in population and 
with 50 or more fixed-route vehicles in peak service must conduct a 
service equity analysis for all service changes that meet the 
recipient's definition of ``major service change'' prior to 
implementing the service change. A service equity analysis is also 
required for all New Start, Small Start, or other new fixed guideway 
capital projects, and must be completed six months prior to 
implementing revenue service. Recipients also must conduct a fare 
equity analysis for all fare increases or decreases prior to 
implementing a fare change and for changes to fare media, such as a 
transition to a cashless fare system. Recipients that do not meet the 
abovementioned threshold of 200,000 or more in population and 50 fixed 
route vehicles in peak service (i.e., small transit providers) are not 
required to conduct a service or fare equity analysis but should review 
their policies and practices to ensure their service and fare changes 
do not result in disparate impacts on the basis of race, color, or 
national origin. For guidance, see Title VI Circular 4702.1B at https://www.transit.dot.gov/title6. Should you have any questions, please 
contact your Regional Civil Rights Officer.
3. Disadvantaged Business Enterprise Program--Transit Vehicle 
Manufacturers
    Recipients exercising pre-award authority are expected to comply 
with the Disadvantaged Business Enterprise (DBE) regulations. The 
Department of Transportation's DBE program helps small businesses owned 
by socially and economically disadvantaged individuals to compete in 
the marketplace, and is designed to support the people who create 
jobs--our nation's entrepreneurs. When procuring vehicles, 49 CFR 
26.49(a) requires that transit vehicle manufacturers ``must establish 
and submit for FTA's approval an annual overall percentage goal'' and 
``may make the certification required by this section if you have 
submitted the goal this section requires and FTA has approved it or not 
disapproved it.''
    Recipients are advised that it is not sufficient to accept a 
certification stating that ``FTA has not disapproved'' of a TVMs DBE 
goal. Rather, Recipients must ensure that the TVM has submitted a goal 
to FTA and FTA has either approved it or not disapproved it. A 
recipient may request from FTA verification that a TVM has submitted a 
DBE goal to FTA for its review. Please email your Regional Civil Rights 
Officer regarding your request and FTA will respond via email within 
five business days. Furthermore, to assist with TVM certification 
compliance, FTA maintains a web posting of all certified TVMs located 
at https://www.transit.dot.gov/TVM.
    Finally, FTA takes the position that failure by a Recipient to 
verify a TVM's eligibility to bid on an FTA-assisted contract prior to 
award cannot be cured after award of the contract and will likely 
result in FTA declining to provide Federal funding for the vehicle 
procurement.
    Furthermore, recipients are also reminded of the requirement in 49 
CFR 26.49(a)(4), which states that ``FTA recipients are required to 
submit within 30 days of making an award, the name of the successful 
bidder, and the total dollar value of the contract in the manner 
prescribed in the grant agreement.'' Recipients are to report to FTA 
all vehicle purchases, post-production alterations, and retrofit 
procurements within the 30 days of award. Vehicles purchased solely for 
personal use and/or purchased ``off the lot'' do not need to be 
reported.

E. Consolidated Planning Grants

    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant, awarded by either FTA or FHWA. The 
Consolidated Planning Grants (CPG) eliminate the need to monitor 
individual fund sources, if several have been used, and ensures that 
the oldest funds will always be used first.
    Under the CPG, States can report metropolitan planning program 
expenditures (to comply with the Uniformed Guidance 2 CFR 200, subpart 
F) for both FTA and FHWA under the Catalogue of Federal Domestic 
Assistance number for FTA's Metropolitan Planning Program (20.505). 
Additionally, for States with an FHWA Metropolitan Planning (PL) fund-
matching ratio greater than 80 percent, the State can waive the 20 
percent local share requirement, with FTA's concurrence, to allow FTA 
funds used for metropolitan planning in a CPG to be granted at the 
higher FHWA rate. For some States, this Federal match rate can exceed 
90 percent.
    States interested in transferring planning funds between FTA and 
FHWA should contact the FTA Regional Office or FHWA Division Office for 
more detailed procedures. The FHWA Order 4551.1 dated August 12, 2013, 
on ``Funding Transfers to Other Agencies and Among Title 23 Programs'' 
provides guidance and more detailed information.
    For further information on CPGs, contact Ann Souvandara, Office of 
Budget and Policy, FTA, at (202) 366-0649 or [email protected].

F. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Regional Office. All applications are filed 
electronically. FTA continues to award and manage grants and 
cooperative agreements using the Transit Award Management System 
(TrAMS). Information on accessing and using TrAMS, including a list of 
FTA points of contact for the system, can be found on FTA's website at 
http://www.transit.dot.gov/TrAMS.
    FTA regional staff are responsible for working with grantees to 
review and process grant applications. For an application to be 
considered complete and ready for FTA to assign a Federal Award 
Identification Number (FAIN), enabling submission in TrAMS, and 
submission to the Department of Labor (when applicable), the following 
requirements must be met:

[[Page 33042]]

    1. Recipient has registered in the System for Award Management 
(SAM) and its registration is current. If your agency is not registered 
or needs to ensure it is current, visit the SAM website at (https://www.sam.gov).
    2. Recipient's contact information, including Dun and Bradstreet 
Data Universal Numbering System (DUNS), is correct and up-to-date. If 
requested by phone (1-866-705-5711), DUNS is provided immediately. If 
your organization does not have a DUNS, please visit the Dun & 
Bradstreet website at http://fedgov.dnb.com/webform to obtain the 
number.
    3. Recipient has properly submitted its annual certifications and 
assurances.
    4. Recipient's Civil Rights submissions are current.
    After October 1, 2018, the grantee has a Transit Asset Management 
plan in place that meets the requirements of 49 CFR part 625, or is 
covered by a compliant Group Plan.
    5. Documentation is on file to support recipient's status as either 
a designated recipient (for the program and area) or a direct 
recipient.
    6. Funding is available, including any flexible funds included in 
the budget, and split letters or suballocation letters on file (where 
applicable) to support amount being applied for in grant application.
    7. The project is listed in a currently approved Transportation 
Improvement Program (TIP); Statewide Transportation Improvement Program 
(STIP), or Unified Planning Work Program (UPWP).
    8. All eligibility issues are resolved.
    9. Required environmental findings are made.
    10. The application contains a well-defined scope of work, 
including at least one project with accompanying project narratives, 
budget scope and activity line item information, Federal and non-
Federal funding amounts, and milestones.
    11. Major Capital Projects as defined by 49 CFR part 633 ``Project 
Management Oversight'' must document FTA has reviewed the project 
management plan and provided approval.
    12. Milestone information is complete, or FTA determines that 
milestone information can be finalized before the grant is ready for 
award. FTA will also review status of other open grants' reports to 
confirm financial and milestone information is current on other open 
grants and projects.
    Before FTA can award grants for competitive projects and 
activities, notification must be provided to the House and Senate 
authorizing and appropriations committees. Other important issues that 
impact FTA grant processing activities are discussed below.
    a. System for Award Management (SAM) Registration and Dun and 
Bradstreet Universal Numbering System (DUNS) Number.
    Each applicant or recipient of Federal Funds is required to: (1) Be 
registered in SAM before submitting its application; (2) have a valid 
DUNS number; and (3) continue to maintain an active SAM registration 
with current information at all times during which it has an active 
award or an application or plan under consideration by the Federal 
Transit Administration (FTA). FTA will not make an award to an 
applicant until the applicant has complied with all applicable DUNS and 
SAM requirements and, if an applicant has not fully complied with the 
requirements by the time the FTA is ready to make a Federal award, FTA 
may determine that the applicant is not qualified to receive a Federal 
award and use that determination as a basis for making a Federal award 
to another applicant.
    The System for Award Management (SAM) https://www.sam.gov/portal/SAM/ is the Official U.S. Government system that consolidated the 
capabilities of many systems. There is no fee to register or use this 
site. Entities may register and update their information at no cost 
directly from the above site. SAM registration (formerly CCR 
registration) needs to be renewed at least annually.
    b. Award Budgets--Scope Codes and Activity Line Items (ALI) Codes; 
Financial Purpose Codes.
    FTA uses the Scope and Activity Line Item (ALI) Codes in the award 
budgets to track disbursements, monitor program trends, report to 
Congress, and to respond to requests from the Inspector General and the 
Government Accountability Office (GAO), as well as to manage grants. 
The accuracy of the data is dependent on the careful and correct use of 
codes.
c. Designated and Direct Recipients Documentation
    For its formula programs, FTA primarily apportions funds to the 
designated recipient in the large UZAs (areas over 200,000), or for 
areas under 200,000 (small UZAs and rural areas), it apportions the 
funds to the Governor, or its designee (e.g., State DOT). Depending on 
the program and as described in the individual program sections found 
in Section IV of this notice, further suballocation of funds may be 
permitted to eligible recipients who may then apply directly to FTA for 
the funding (direct recipients), so long as the required documentation 
is on file.
    For the programs in which FTA may make grants to eligible direct 
recipients, other than the designated recipient(s), recipients are 
reminded that documentation must be on file to support: (1) The status 
of the recipient either as a designated recipient or direct recipient; 
and (2) the allocation of funds to the direct recipient.
    Documentation to support existing designated recipients for the UZA 
must also be on file at the time of the first application in FY 2018. 
Further, split letters and/or suballocation letters (Governor's 
Apportionment letters), must also be on file to support grant 
applications from direct recipients. Once suballocation letters for FY 
2018 funding are finalized they should be uploaded into TrAMS.
    The Direct Recipient is required to upload to TrAMS a copy of the 
suballocation letter (Letter) indicating their allocation of funding 
[for the appropriate fund program] when the applicant transmits their 
application for initial review. The letter must be signed by the 
Designated Recipient, or as applicable in accordance with their 
planning requirements. If there are two Designated Recipients, both 
entities must sign the Letter. The Letter must: (1) Indicate the 
allocations to the respective Direct Recipients listed in the letter; 
(2) incorporate language above the signatories to reflect this 
agreement; and (3) make clear that the Direct Recipient will assume 
any/all responsibility associated with the award for the funds. When 
drafting the letter, Designated Recipients may use the template 
language below:
    ``As identified in this Letter, the Designated Recipient(s) 
authorize the reassignment/reallocation of [enter fund source; e.g. 
Section 5307 funds] to the Direct Recipient(s) named herein. The 
undersigned agree to the amounts allocated/reassigned to each direct 
Recipient. Each Direct Recipient is responsible for its application to 
the Federal Transit Administration to receive such funds and assumes 
the responsibilities associated with any award for these funds.''
2. Payments
    Once a grant has been awarded and executed, requests for payment 
can be processed. To process payments, FTA uses ECHO-Web, an internet 
accessible system that provides grantees the capability to submit 
payment requests on-line, as well as receive user-IDs and passwords via 
email. New applicants should contact the appropriate FTA

[[Page 33043]]

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

G. Grant Management

1. Grant Reporting
    Recipients of FTA funds are reminded that all FTA grantees are 
required to report on their grants. It is critical to ensure reports 
demonstrate that reasonable progress is being made on projects. At a 
minimum, all awards require a Federal Financial Report (FFR) and a 
Milestone Progress Report (MPR) on an annual basis. Some reports are 
required quarterly depending on the recipient and the type of projects 
funded under the grant and FTA's risk-based reporting policy that went 
into effect on October 1, 2017. The requirements for these reports and 
other reporting requirements can be found in the latest version of FTA 
Circular 5010. FTA staff, auditors, and contractors rely on the 
information provided in the FFR and MPR to review and report on the 
status of both financial and project-level activities contained in the 
grant. It is critical that recipients provide accurate and complete 
information in these reports and submit them by the required due date. 
Failure to report and/or demonstrate reasonable progress on projects 
can result in suspension or premature close-out of a grant.
2. Inactive Grants and Grant Closeout
    In FY 2018 FTA will continue to focus on identifying and working 
with recipients to close inactive grants. If appropriate, FTA will act 
to close out and deobligate funds from these grants if reasonable 
progress is not made. The efficient use of funds will further FTA's 
fulfillment of its mission to provide efficient and effective public 
transportation systems for the nation. As inactive grants continue to 
be an audit finding within the DOT, FTA must act to ensure its grants 
do not prevent the DOT from receiving a ``clean audit'' opinion on its 
annual financial statements.
    In October 2017, FTA identified a list of grants that were awarded 
on or prior to September 30, 2014 and have had no funds disbursed since 
September 30, 2016 or have never had a disbursement. FTA Regional 
Offices will be contacting grant recipients with grants that meet these 
criteria to notify them that FTA intends to close the grant and 
deobligate any remaining funds unless the grantee can provide 
information that demonstrates that the projects funded by the grant 
remain active and the grantee has a realistic schedule to expedite 
completion of the projects funded in the grant.
    In addition, FTA will work to identify any grants that may be 
subject to Grants Oversight and New Efficiency (GONE) Act reporting in 
October 2018. The GONE Act requires Federal agencies to report active 
awards whose period of performance end date is two or more years prior 
to the end of the fiscal year. For FY 2018, this means any active award 
with a period of performance end date on September 30, 2016 or prior. 
FTA plans to work with recipients whose awards are in this category to 
close the awards or modify the award to extend the period of 
performance, as necessary.

    Issued in Washington, DC.
K. Jane Williams,
Acting Administrator.
[FR Doc. 2018-14989 Filed 7-13-18; 8:45 am]
 BILLING CODE P


83_FR_33154
Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
Dates(1) The date of the Federal approval of the relevant STIP or STIP amendment that includes the project or any phase of the project, or that includes a project grouping under 23 CFR 450.216(j) that includes the project; or (2) the date that FTA approves the project into the project development phase of the CIG program. The grant applicant must notify the FTA Regional Office to initiate the Federal environmental review process in accordance with the ``Dear Colleague'' letter from the FTA Administrator dated February 24, 2011. NEPA-related activities include, but are not limited to, public involvement activities, historic preservation reviews, Section 4(f) evaluations, wetlands evaluations, endangered species consultations, and biological assessments. This pre-award authority is strictly limited to costs incurred to conduct the NEPA process and associated engineering, and to prepare environmental, historic preservation and related documents. When a New Starts, Small Starts, or Core Capacity project is granted pre-award authority for the environmental review process, the reimbursement for NEPA activities conducted under pre- award authority may be sought at any time through Section 5307 (Urbanized Area Formula Program) or the flexible highway programs (STP and CMAQ). Reimbursement from the Section 5309 CIG program for NEPA activities conducted under pre-award authority is provided only for expenses incurred after entry into the project development phase and only once a construction grant agreement is signed. As with any pre- award authority, FTA reimbursement for costs incurred is not guaranteed. d. Other Activities Requiring Letter of No Prejudice (LONP)
ContactFor general information about this notice contact Kimberly Sledge, Director, Office of Transit Programs, at (202) 366-2053. Please contact the appropriate FTA Regional Office for any specific requests for information or technical assistance. FTA Regional Office contact information is available on FTA's website: www.transit.dot.gov. An FTA headquarters contact for each major program area is included in the discussion of that program in the text of this notice. FTA recommends stakeholders subscribe on FTA's website www.transit.dot.gov to receive email notifications when new information is available.
FR Citation83 FR 33018 

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