[Federal Register Volume 78, Number 77 (Monday, April 22, 2013)]
[Notices]
[Pages 23818-23822]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09333]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA- 2013-0010]
Urbanized Area Formula Program: Proposed Circular
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of Availability of Proposed Circular and Request for
Comments.
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SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its Web site, proposed guidance, in the form of a
circular, to assist recipients in their implementation of the section
5307 Urbanized Area Formula Program. The purpose of this proposed
circular is to provide recipients of FTA financial assistance with
instructions and guidance on program administration and the grant
application process. The proposed revisions to the existing circular
are a result of changes made to the Urbanized Area Formula Program by
the Moving Ahead for Progress in the 21st Century Act. By this notice,
FTA invites public comment on the proposed circular.
DATES: Comments must be submitted by June 21, 2013. Late-filed comments
will be considered to the extent practicable.
ADDRESSES: You may submit comments identified by the docket number FTA-
2013-0010 by any of the following methods:
Federal eRulemaking Portal: Submit electronic comments and
other data to http://www.regulations.gov.
U.S. Mail: Send comments to Docket Operations; U.S.
Department of Transportation, 1200 New Jersey Avenue SE., West Building
Room W12-140, Washington, DC 20590-0001.
Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building, Ground Floor, at 1200
New Jersey Avenue SE., Washington, DC, between 9:00 a.m. and 5:00 p.m.,
Monday through Friday, except Federal holidays.
Fax: Fax comments to Docket Operations, U.S. Department of
Transportation, at (202) 493-2251.
Instructions: The agency name (Federal Transit Administration) and
Docket Number (FTA-2013-0010) must be included at the beginning of each
submission. If sent by mail, please submit two copies. Due to security
procedures in effect since October 2001, mail received through the U.S.
Postal Service may be subject to delays. Parties mailing comments
should consider using an express mail firm to ensure their prompt
filing. If you wish to receive confirmation that FTA received your
comments, you must include a self-addressed stamped postcard. All
comments received will be posted without change to http://www.regulations.gov, including any personal information provided. You
may review USDOT's complete Privacy Act Statement published in the
Federal Register on April 11, 2000, at 65 FR 19477-8 or http://DocketsInfo.dot.gov.
FOR FURTHER INFORMATION CONTACT: For program matters, Adam Schildge,
Office of Project Management, (202) 366-0778 or Adam.Schildge@dot.gov.
For legal matters, Rita Maristch, Office of Chief Counsel, (215) 656-
7249 or Rita.Maristch@dot.gov. Office hours are from 8:30 a.m. to 5:00
p.m., Monday through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overview
C. Chapter III--General Program Information
D. Chapter IV--Eligible Projects and Requirements
E. Chapter V--Planning and Program Development
F. Chapter VI--Program Management and Administrative
Requirements
G. Chapter VII--Other Provisions
H. Tables, Graphs, and Illustrations
I. Appendices
I. Overview
This notice provides a summary of proposed changes to FTA Circular
9030.1D, Urbanized Area Formula Program: Program Guidance and
Application Instructions. The section 5307 Urbanized Area Formula
Program authorizes Federal financial assistance for public
transportation in urbanized areas for capital and planning projects,
job access and reverse commute projects, and, in some cases, operating
assistance. This program was affected by the Moving Ahead for Progress
in the 21st Century Act (MAP-21, Pub. L. 112-141), signed into law on
July 6, 2012. FTA is updating the existing circular, 9030. 1D,
published on May 10, 2010, to reflect changes in the law.
MAP-21 made several significant changes to Federal transit laws
that are applicable across all of FTA's financial assistance programs
and reflected in the proposed circular. These changes further several
important goals of the Department of Transportation (DOT). Most
notably, MAP-21 grants FTA significant new authority to oversee and
regulate the safety of public transportation systems throughout the
United States. The Act also puts new emphasis on restoring and
replacing the Nation's aging public transportation infrastructure by
establishing a new State of Good Repair formula program and new asset
management requirements. In addition, it aligns Federal funding with
key performance goals and tracks recipients' progress towards these
goals. Finally, MAP-21 improves the efficiency of program
administration through program consolidation and streamlining.
In addition to MAP-21 updates addressed above, and outlined below,
the proposed circular updates the organization and wording of the
existing circular to improve clarity and to achieve consistency with
FTA's other guidance circulars and to reflect other changes made by
MAP-21, specifically to the 5307 program. When adopted, the final
circular will supersede the existing circular.
This document does not include the proposed circular for which FTA
seeks comment; however, an electronic version is available on FTA's Web
site, at www.fta.dot.gov. Paper copies may be obtained by contacting
FTA's Administrative Services Help Desk, at (202) 366-4865.
Following, is a chapter-by-chapter analysis of the substantive
changes to the existing circular's content.
[[Page 23819]]
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Chapter I of the circular is an introductory chapter that covers
general information about FTA, provides a brief history of the 5307
program, and defines terms applicable across all FTA programs.
(1) Definitions
The proposed circular updates the definitions section to include
changes and additions made by MAP-21. The following statutory
definitions were amended by MAP-21:
Associated transit improvements (previously ``transit
enhancements'')
Bus rapid transit (BRT) system
Commuter highway vehicle or vanpool vehicle
Disability
Fixed guideway
Job access and reverse commute project
Low income individual
Private provider of public transportation by vanpool
Public transportation
Regional transportation planning organization
Senior
Definitions have also been added to this section for terms that are
unclear or currently undefined. Where applicable, we have used the same
definitions found in rulemakings or other circulars to ensure
consistency.
(2) Program History
This section provides an overview of each piece of legislation that
has authorized the 5307 Program. This section has been revised to
incorporate a summary of changes made by MAP-21.
B. Chapter II--Program Overview
Chapter II covers general information about the 5307 Program.
(1) Statutory Authority
This section updates the exiting circular to include references to
MAP-21. MAP-21 authorized the award of 5307 program funds for certain
new and redefined activities including, job access reverse commute
projects, operating costs, and associated transit improvements, each of
which is discussed further, below.
(2) Census Designation of Urbanized Areas (UZA)
The proposed circular adds this new section which describes the
designation of UZAs based on the 2010 Census. Beginning this fiscal
year (FY), FY 2013, FTA incorporated the results of the 2010 Census
into its formula apportionments. The 2010 Census data shows that the
number of UZAs increased from 465 in 2000 to 497 in 2010, and the total
population residing in UZAs increased from 195 to 223 million, an
increase of approximately 12 percent. As a result, some UZAs have
crossed statutorily-mandated population thresholds resulting in changes
to the amount of formula funds that those areas can receive, and
possibly resulting in changes to eligible uses of those funds.
(3) FTA Role in Program Administration
This section clarifies that funds are apportioned to States and
Designated Recipients (DR), only--States for small UZAs (areas between
50,000 and 200,000 in population), and DRs for large UZAs (areas over
200,000 in population). This section also discusses the requirement
that large UZA's ensure that the annual Program of Projects complies
with the requirements that a portion of apportioned funds be spent on
security and associated transit improvement projects. FTA believes that
its previous interpretation of these requirements was inaccurate, and
now interprets each provision to require their application at the UZA
level. In other words, each 1 percent set aside will apply to the 5307
apportionment to the UZA, and not to each 5307 DR. This is because the
UZA, and not the designated recipient, is required to certify that 1
percent of the apportionment is set aside for each of these two
purposes. Once the DR receives the apportionment, it will allocate the
1 percent requirement among the direct recipients (transit agencies).
(4) Direct Recipient and Subrecipient Eligibility
This new section clarifies the process for selecting and
establishing a Designated Recipient (DR), and clarifies the process for
allocating funds to direct recipients and for sub-awarding funds to
subrecipients. Direct recipients must be a public entity that is
legally eligible to apply for FTA funding. If certain requirements are
met, a public agency may apply for some or all of a UZA's
apportionment.
(5) Subrecipient Arrangements
Because Congress has repealed the former section 5316 JARC program
and included job access reveres commute projects within the list of
eligible 5307 activities, FTA believes that Congress intended for
entities eligible under the former JARC program to be eligible to use
MAP-21 5307 program funds for job access reverse commute projects; this
would include private non-profit operators of job access reverse
commute projects as subrecipients.
(6) Transportation Management Areas (TMAs)
TMAs are not synonymous with large UZAs, which is how the term is
currently used in the existing circular. This circular explains that
TMAs apply only to the planning requirements.
(7) Relationship to Other Programs
This section adds a discussion on both repealed SAFETEA-LU programs
for which funds may still be available, and new MAP-21 programs. The
discussion on FHWA flexible funds in the existing circular has been
moved to chapter V.
(a) Repealed SAFETEA-LU Programs
This section discusses the relationship between programs repealed
by MAP-21 and the 5307 program as amended by MAP-12. Funds previously
authorized for programs that were repealed by MAP-21 may remain
available for their originally authorized purposes until the statutory
period of availability expires, or until the funds are fully expended,
rescinded by Congress, or otherwise reallocated.
The following programs were repealed by MAP-21:
Clean Fuels Grant Program (former section 5308)
Bus and Bus Facilities Discretionary Program (former section
5309)b)(3)
Job Access and Reverse Commute Program (former section 5316)
Paul S. Sarbanes Transit in the Parks Program (former section
5320)
New Freedom Program (former section 5317)
Alternatives Analysis Program (former section 5339)
(b) New MAP-21 Programs
This section discusses the relationship between the 5307 program,
as amended by MAP-21, and the following programs that are either
completely new or were significantly modified by MAP-21.
Fixed Guideway Capital Investment Program (5309, New and Small
Starts, and Core Capacity Improvements)
Bus and Bus Facilities Formula Program (5339)
State of Good Repair Formula Program (5337)
Rural Area Formula Program (5311)
Transit Oriented Development Pilot Program (section 20005(b)
of MAP-21)
Transportation Alternatives Program (23 U.S.C. 213(b))
[[Page 23820]]
Federal Lands Access Program (23 U.S.C. 204)
C. Chapter III--General Program Information
This chapter discusses in more detail the apportionments for the
5307 program. It also discusses the Federal share of projects costs,
local share, other sources of financing, and the new Passenger Ferry
Discretionary Grant Program. Discussion of eligible projects was moved
from chapter III in the existing to chapter IV in the proposed
circular.
(1) Apportionment of Program Funds
In the proposed circular, this section includes the revised
apportionment calculations, including the new set-asides and formula
calculations established by MAP-21. Section 5336(h) now provides that
3.07% of section 5307 funds available for apportionment are allocated
on the basis of low-income persons residing in urbanized areas, with 25
percent of these funds allocated to areas below 200,000 in population
and the remaining 75 percent allocated to areas 200,000 and over in
population. MAP-21 also increased the percentage of funds allocated on
the basis of Small Transit Intensive Cities (STIC) factors from 1 to
1.5 percent. Finally, MAP-21 established a new 0.5 percent takedown
from the 5307 program for the State Safety Oversight Grant Program and
a $30 million takedown for the new Passenger Ferry Discretionary Grant
Program.
(2) Funds Availability
Generally, MAP-21 extended the number of years that apportioned
funds remain available for obligation from 3 to 5 additional years from
the year in which the funds were apportioned. As a result, most funds
are now available for a total of 6 years including the year of
apportionment.
(3) Passenger Ferry Grants Discretionary Program
This section of the proposed circular adds a brief introduction of
the new Passenger Ferry Discretionary Grant Program. Each fiscal year,
a total of $30 million is authorized to be set aside from the 5307
program to support passenger ferry projects that will be selected on a
competitive basis.
(4) Federal Share of Project Costs for Certain Projects--Americans With
Disabilities Act, Clean Air Act
As a result of MAP-21, the Federal share of project costs is 85
percent for certain projects related to the Americans with Disabilities
Act (ADA) and the Clean Air Act (CAA).
(5) Local Share of Project Costs
Generally, and consistent with MAP-21, the proposed circular does
not change the local match requirements--there is a 20 percent local
match requirement for capital assistance and a 50 percent requirement
for operating assistance. However, MAP-21 expanded the category of
funds that can be used as local match. In addition to those sources of
local match previously authorized under SAFETEA-LU, local match may
also be derived from the following newly authorized sources:
Amounts appropriated or otherwise made available to a
department of agency of the Government (other than DOT), such as
Community Development Block Grant Funds administered by the Department
of Housing and Urban Development.
Any amount expended by providers of public transportation
by vanpool for the acquisition of rolling stock to be used in the
recipient's service area, excluding any amounts the provider may have
received in Federal, State or local government assistance for such
acquisition. The provider is required to have a binding agreement with
the public transportation agency to provide service in the relevant
UZA.
(6) Alternative Financing--Transportation Infrastructure Financing and
Innovation Act (TIFIA)
This section of the proposed circular updates the eligibility
criteria for capital projects seeking TIFIA financing, pursuant to
section 2002 of MAP-21 (23 U.S.C. 601 et seq). Eligible projects
include any transit capital project which is anticipated to meet the
statutory threshold size.
Chapter IV--Eligible Projects and Requirements
In the proposed circular, project eligibility and requirements was
moved from chapter III into a new chapter IV. This chapter discusses
the types of projects and activities that may be funded under the 5307
program.
(1) Joint Development Projects
This section has been revised to update the statutory citation,
include a definition of joint development, and express the relationship
between joint development and private sector participation.
(2) Clean Air Act (CAA) Projects
Vehicles powered by biodiesel fuel or clean fuel are no longer
eligible CAA projects.
(3) Public Transportation Safety Certification Training
MAP-21 requires FTA to establish a Public Transportation Safety
Certification Training Program. Once established, a recipient may use
up to half of 1 percent of their 5307 apportionment towards safety
certification training under 49 U.S.C. 5329(c).
(4) Operating Assistance
Recipients in urbanized areas under 200,000 in population may use
5307 program funds for operating assistance at a 50 percent Federal
share. There is no cap to the amount that can be used in these areas
for operating assistance. Unless specifically authorized, recipients in
urbanized areas of 200,000 or more in population are not permitted to
use program funds for operating assistance.
Under MAP-21, a special rule allows recipients in urbanized areas
with populations of 200,000 or above and that operate 100 or fewer
buses in fixed route service during peak hours, to receive a grant for
operating assistance subject to a maximum amount per system, subject to
the following:
Public transportation systems that operate a minimum of 76
buses and a maximum of 100 buses in fixed route service during peak
service hours may receive operating assistance in an amount not to
exceed 50 percent of the share of the apportionment that is
attributable to such systems within the urbanized area, as measured by
vehicle revenue hours.
Public transportation systems that operate 75 or fewer buses in
fixed route service during peak service hours may receive operating
assistance in an amount not to exceed 75 percent of the share of the
apportionment that is attributable to such systems within the urbanized
area, as measured by vehicle revenue hours.
(5) Design and Art in Public Buildings
Under MAP-21, ``public art'' is no longer an eligible associated
transit improvement (formerly ``transit enhancement''). However,
incorporation of design and artistic considerations into public
transportation projects may still be an allowable cost, so long as it
is an integral part of the project. For example, an artist may be
employed as part of the construction design team, or art can be
incorporated into functional elements such as walls, seating, lighting,
or railings.
[[Page 23821]]
(6) Job Access Reverse Commute Projects
The SAFETEA-LU Job Access and Reverse Commute (JARC) Program,
(former section 5316), was repealed by MAP-21; however, job access and
reverse commute projects are now eligible under the 5307 program. A job
access reverse commute project is a ``transportation project to finance
planning, capital, and operating costs that support the development and
maintenance of transportation services designed to transport welfare
recipients and eligible low-income individuals to and from jobs and
activities related to their employment, including transportation
projects that facilitate the provision of public transportation
services from urbanized areas and rural areas to suburban employment
locations--49 U.S.C. 5302(9).''
Each potential project must be for the ``development'' or
``maintenance'' of transportation services designed to transport
welfare recipients and eligible low-income individuals to and from jobs
and employment-related activities and also must be otherwise eligible
under the 5307 Program. FTA defines ``development of transportation
services'' to mean new projects that were not in service on October 1,
2012. Job access reverse commute projects eligible for funds under
section 5307, as amended by MAP-21, must be designed for the target
population. New job access and reverse commute projects may include the
expansion or extension of an existing service, so long as the new
service was designed to support the target populations; however, such
projects are not required to be designed for the sole use of the target
populations.
This section also proposes new policy that would eliminate from the
list of eligible activities/expenses, the car loan program and expenses
related to the voucher programs.
Although job access and reverse commute projects are not required
to be developed through a coordinated planning process, the project
must be identified by the MPO and DR as a job access and reverse
commute project in the DR's annual Program of Projects, which must be
developed in consultation with interested parties, published with the
opportunity for comments, and subject to a public hearing.
The unobligated carryover balances of pre-MAP-21 JARC program funds
may be obligated through the period of availability, but must follow
the SAFETEA-LU requirements. For example, section 5316 JARC projects
must still be derived from a human service public transportation
coordinated plan and must also be selected by the DR through an area-
wide or statewide competitive selection process. Although not required
by law, FTA encourages recipients to continue to use the coordinated
planning process to identify and develop job access and reverse commute
projects for funding under Section 5307, as amended by MAP-21.
(7) Interest and Debt Financing-Debt Service Reserve
The proposed circular removes the section on Debt Service Reserve
because MAP-21 repealed the 5307 debt service reserve pilot program at
49 U.S.C. 5323(e)(4)(A), as amended by SAFETEA-LU.
D. Chapter V--Planning and Program Development
This proposed new chapter would replace chapter V in the existing
circular titled ``Coordinated Planning.'' Under SAFETEA-LU, certain
eligible projects were required to be developed under a locally
developed, coordinated planning process. Under MAP-21, coordinated
planning is only a requirement of eligibility under the section 5310
program.
(1) Transportation Management Areas
This section of the proposed circular revises the discussion of
TMAs for planning purposes. The proposed circular references the
statutory definition of a TMA, which is a UZA with a population of over
200,000 individuals. There is also reference to the joint FTA/FHWA
transportation planning regulations at 23 CFR part 40, which include
guidelines on determining the boundaries of a Metropolitan Planning
Area (MPA).
(2) Performance Based Standards
This new section of the proposed circular discusses the
requirements of MAP-21's new broad performance management program which
supports the seven national performance goals. The performance
management framework attempts to improve project decision-making
through performance-based planning and programming and through
fostering a transparent and accountable decision-making process for
MPOs, States, and providers of public transportation.
(3) Coordinated Planning
This section of the proposed circular updates the language on
coordinated planning, which is no longer required for projects funded
with 5307 Program funds. However, 5307 recipients who will apply for
section 5310 funds are still required to participate in the local
planning process for coordinated public transit-human services.
Moreover, FTA strongly encourages 5307 recipients to engage in a
coordinated planning process.
(4) Availability of FHWA ``Flexible Funds'' for Transit Projects
This section of the proposed circular clarifies the availability of
FHWA funds for eligible transit projects. FHWA flexible funds may be
available to FTA recipients for planning and capital projects, and
operating expenses. This section also clarifies the requirements for
transfer of Congestion Mitigation and Air Quality (CMAQ) Improvement
Program funds. Generally, funds appropriated for the 5307 program in in
FY 2013 and beyond, are no longer authorized to be transferred to FHWA.
(5) Associated Transit Improvements
MAP-21 changed the term ``transit enhancements'' to ``associated
transit improvements.'' An associated transit improvement is a project
``designed to enhance public transportation service or use and that
[is] physically or functionally related to transit facilities.'' This
section of the proposed circular discusses the requirements to expend a
percentage of a urbanized area's 5307 program funds on associated
transit improvements and also discusses eligible projects.
As previously stated, public art and transit connections to parks
within the recipient's transit service area are no longer eligible
projects. While Federal transit funds are no longer available to
support public art in transit facilities, art can be incorporated into
facility design, landscaping, and historic preservation.
(6) Public Transportation Security Projects
This section discusses the public transportation security project
certification requirement. The proposed circular limits the list of
eligible security projects to those explicitly referenced in MAP-21.
(7) Environmental
This section in the proposed circular has been revised to clarify
that recipients should consult with FTA regarding the proper level of
environmental review, prior to expending funds for a project.
(8) Undertaking Projects in Advance
The proposed circular revises this section to explain the different
[[Page 23822]]
authorities that allow a recipient to incur costs on a project before
grant approval, while still retaining their eligibility for
reimbursement for eligibility after grant approval. The three types of
authorities are Pre-award authority, letters of no prejudice (LONP),
and advanced construction authority (ACA). This section discusses the
distinction among these three authorities and the terms and conditions
that apply equally to all three.
E. Chapter VI--Program Management and Administrative Requirements
(1) Certifications Required by 49 U.S.C. 5307
The proposed circular updates this section to add the requirement
that recipients certify compliance with 49 U.S.C. 5329(d), which
requires recipients and States to develop and implement a Public
Transportation Agency Safety Plan, and 49 U.S.C. 5326, which requires
each recipient and subrecipient to develop a Transit Asset Management
Plan.
(2) Expenditures on Public Transportation Security
This section discusses the public transportation security projects
certification requirement. The security requirement applies to the DR
on the UZA apportionment, and not to individual recipients. Therefore,
the DR must complete this certification.
(3) FTA Electronic Grants Management System
In this section of the proposed circular, references to FTA's
electronic grants management system--TEAM, have been removed in
consideration of a new system, currently under development.
(4) Federal Funding Accountability and Transparency Act (FFATA)
Requirement
The proposed circular adds this new section which discusses the
statutory requirement that a recipient report information about each
first tier sub-award over $25,000 by the end of the month following the
month the direct recipient makes any sub-award or obligation.
(5) National Transit Database (NTD) Reporting--Waivers
There are no longer any waivers; however, there is a reduced
reporting requirement for small systems.
F. Chapter VII--Other Provisions
(1) State Safety Oversight
This section of the proposed circular clarifies the affect that
MAP-21 has had on the State Safety Oversight (SSO) Program and the
requirements of 49 CFR 659. Section 5330, which authorizes the SSO
Program, will be repealed three years from the effective date of the
new regulations implementing the new section 5329 safety requirements.
Until then, the current requirements of 49 CFR 659 will continue to
apply.
G. Tables, Graphs, and Illustrations
There are no proposed changes to the tables, graphs, and
illustrations.
H. Appendices
There are no proposed changes to existing appendices.
Issued in Washington, DC, this 15th day of April, 2013.
Peter Rogoff,
Administrator.
[FR Doc. 2013-09333 Filed 4-19-13; 8:45 am]
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