Clean Fuels Grant Program, 60681-60685 [E6-17071]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 71, Number 199 (Monday, October 16, 2006)]
[Proposed Rules]
[Pages 60681-60685]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17071]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 624

[Docket No. FTA-2006-24708]
RIN 2132-AA91


Clean Fuels Grant Program

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Section 3010 of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU), amended 
section 5308 of title 49 United States Code, commonly referred to as 
the Clean Fuels Grant Program. SAFETEA-LU changes the program from a 
formula-based to a discretionary grant program. The Federal Transit 
Administration (FTA) proposes to amend its clean fuels grant program 
regulations to comport with the provisions of SAFETEA-LU.

DATES: Comments must be received on or before December 15, 2006. Late 
filed comments will be considered to the extent practicable.

ADDRESSES: Written comments: Submit written comments to the Docket 
Management System, U.S. Department of Transportation, Room PL-401, 400 
Seventh Street, SW., Washington, DC 20590-0001. You may submit comments 
identified by the docket number (FTA-2006-24708) by any of the 
following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the online instructions for submitting comments.
     Web Site: https://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
     Mail: Docket Management System: U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-0001.
     Fax: 1-202-493-2478.
     Hand Delivery: To the Docket Management System, Room PL-
401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays.
    Instructions: All submissions must include the agency name (Federal 
Transit Administration) and Docket number (FTA-2006-24708) or 
Regulatory Identification Number (RIN) (2132-AA91) for this notice. 
Note that all comments received will be posted, without change, to 
https://dms.dot.gov including any personal identifying information. You 
may review DOT's complete Privacy Act Statement in the Federal Register 
notice published on April 11, 2000 (65 FR 19477) or you may visit 
https://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For program issues, Kimberly Sledge, 
Office of Program Management, (202) 366-2053 (telephone); (202) 366-
7951 (fax); or Kimberly.Sledge@dot.gov (e-mail). For legal issues, 
Scheryl Portee, Office of the Chief Counsel, (202) 366-4011 
(telephone); (202) 366-3809 (fax); or Scheryl.Portee@dot.gov (e-mail).

SUPPLEMENTARY INFORMATION:

 I. Background

    Section 3008 of the Transportation Equity Act for the 21st Century 
(TEA-21), Pub. L. 105-178, June 9, 1998, established the Clean Fuels 
Formula Grant Program (the program) with a two-fold purpose. First, the 
program was developed to assist nonattainment and maintenance areas in 
achieving or maintaining the National Ambient Air Quality Standards for 
ozone and carbon monoxide (CO). Second, the program supported emerging 
clean fuel and advanced propulsion technologies for transit buses and 
markets for those technologies.
    We promulgated the formula program as a final rule at 49 CFR part 
624. (See 67 FR 40100, June 11, 2002 and 67 FR 41579, June 18, 2002). 
From its inception the program was authorized as a formula program. 
However, Congress did not fund the program.

 II. Overview and General Discussion of the Proposed Rule

A. Why is FTA amending the Clean Fuels Grant Program?

    Section 3010 of SAFETEA-LU, Pub. L. 109-59, 119 Stat. 1144, 1572 
(2005), changed the grant program from a formula-based to a 
discretionary grant program; however, the program retains its two-fold 
purpose as noted above. We propose to revise 49 CFR part 624 to reflect 
the amendments made by SAFETEA-LU.
    With TEA-21, Congress authorized funding levels for the program at 
$100 million. Although funding was

[[Page 60682]]

authorized, appropriation bills for fiscal years 1999 through 2005 
directed FTA to transfer and merge all allocated funding for the 
program to the bus and bus facilities categories of the Capital 
Investment Grants and Loans Program (49 U.S.C. 5309), which funds the 
replacement, rehabilitation, and purchase of buses and related 
equipment and the construction of bus-related facilities.
    In fiscal year 2006, however, Congress provided $17,607,150 to 
sixteen specific clean fuels projects and transferred the remaining 
balance of funds to the bus and bus facilities program of 49 U.S.C. 
5309(b)(3). (See Department of Transportation Appropriations Act of 
2006, Pub. L. 109-115, 119 Stat. 2396, 2417-2418 (2005)).
    To ensure that procedures are in place when funding is appropriated 
for the program, we propose to establish criteria for the allocation of 
discretionary program funds in accordance with SAFETEA-LU.

B. To what revisions of 49 CFR part 624 does FTA seek comments?

    SAFETEA-LU has modified the program by re-establishing it as a 
discretionary grant program. You are requested to comment on our 
proposal to implement the provisions of SAFETEA-LU by revising 49 CFR 
part 624 as follows:
Eligible Recipients
    1. SAFETEA-LU amended eligible recipients to now include smaller 
urbanized areas with populations of less than 200,000. Accordingly, we 
propose to amend section 624.1 to reflect eligible applicants as 
follows: (1) ``designated recipients,'' as that term is defined in 49 
U.S.C. 5307(a)(2); and (2) recipients in urbanized areas with 
populations of less than 200,000.
    A ``designated recipient'' must be an entity designated to receive 
Federal urbanized formula funds per 49 U.S.C. 5307, in accordance with 
the applicable metropolitan and statewide transportation planning 
processes, by the chief executive officer of a State, responsible local 
officials, and publicly owned operators of public transportation. For 
an urbanized area with a population of less than 200,000, however, 
SAFETEA-LU requires the smaller urbanized area's respective State to 
act as the recipient.
    Further, all recipients must meet one of the following criteria: 
(1) Be designated as an ozone or CO nonattainment area as established 
by section 107(d) of the Clean Air Act (42 U.S.C. 7407(d); or (2) be 
designated as a maintenance area for ozone or CO. A maintenance area is 
a previously designated nonattainment area that has been redesignated 
to attainment status by the U.S. Environmental Protection Agency (EPA).
Eligible Activities
    2. We propose to amend section 624.3 by amending paragraph (a) and 
removing paragraphs (c)(4) and (c)(5) to exclude repowering and 
retrofitting of pre-1993 buses as eligible activities. Both activities 
were specifically authorized as eligible projects under TEA-21; 
however, SAFETEA-LU repealed those provisions. Accordingly, we have 
determined that such activities should not be authorized under this 
program. In addition, we propose to amend paragraph (c) by renumbering 
the current paragraph (c)(6) as a new (c)(3), and adding new paragraphs 
(c)(4), (5), and (6) to reflect SAFETEA-LU provisions applicable to 
eligible projects.
    a. We propose to amend paragraph (a) to reflect the provisions in 
49 U.S.C. 5323(i), which SAFETEA-LU amended to include facilities as 
well as vehicles. Accordingly, the Federal share for eligible projects 
will not exceed 90 percent of the net cost to comply with or maintain 
compliance with the Clean Air Act.
    Further, the Administrator is authorized to administratively 
determine the net cost of such equipment or facilities attributable to 
compliance with the Clean Air Act. Therefore, for purposes of complying 
with cross-cutting provisions of 49 U.S.C. 5307, which limit the 
Federal share to 80 percent, we have administratively determined that 
the composite Federal share for vehicles and vehicle related equipment 
shall be 83 percent. For facilities, however, the 90 percent share 
would apply to the actual incremental costs of improvements for 
compliance with the Clean Air Act and recipients would be requested to 
provide supporting documentation.
    We note that the President's Budget for Fiscal Year 2007 proposed 
that FTA grants awarded during fiscal years 2007 and 2008 should 
reflect 100 percent of the net capital costs of factory-installed or 
retrofitted hybrid electric propulsion systems and any equipment 
related to such systems. This budget proposal also provides for 
administrative discretion to determine costs attributable to such 
systems and related-equipment. If Congress enacts the proposal, we will 
address the issue in the final rule.
    b. Paragraph (c)(5) reflects the congressionally mandated provision 
limiting available funding for ``clean diesel buses'' for each fiscal 
year to not more than 25 percent of funds allocated by 49 U.S.C. 
5338(b)(2)(C). On January 18, 2001, EPA published a final rule 
establishing a comprehensive national control program to regulate 
heavy-duty vehicles and its fuel as a single system. As part of this 
program, new emission standards will start to take effect in model year 
2007, and will apply to heavy-duty highway engines and vehicles. These 
standards are based on the use of high-efficiency catalytic exhaust 
emission control devices or comparably effective advanced technologies. 
The EPA standards are codified at 40 CFR parts 69, 80, and 86. (See 66 
FR 5001 (Jan. 18, 2001)). Accordingly, FTA proposes to interpret 
``clean diesel'' to mean diesel engines certified to meet EPA's heavy-
duty engine emissions standards for model-years 2007 and later.
    c. Paragraph (c)(6) proposes to amend section 624.3 to reflect that 
funds designated for eligible projects will remain available for 
obligation for three fiscal years, which includes the year of 
appropriation plus two additional fiscal years.
Application Process
    3. Since the program is now a discretionary grant program, the pre-
application included in Appendix A no longer applies. Accordingly, we 
propose to remove Appendix A from part 624 and revise Sec.  624.5 to 
reflect that applications will be requested in a Federal Register 
notice each fiscal year that discretionary funds are appropriated by 
Congress for the program.
    Additionally, since technological innovations continue to evolve, 
we believe the criteria for selecting eligible projects should be 
flexible. Accordingly, we propose to revise section 624.5 to reflect 
general criteria for selection of eligible projects. More specific 
selection criteria may be published in the Federal Register with a 
Notice of Funding Availability each fiscal year that discretionary 
funding is appropriated by Congress for the program.
Certifications
    4. We propose to retain the current certification process noted in 
section 624.7. Each vehicle purchased with a grant under this program 
will be operated by the grantee using only clean fuels. The 
certification would be included with the Federal Register notice 
announcing our annual certifications and assurances. This is consistent 
with our policy of one-stop filing for all required certifications and 
assurances. Transit operators planning

[[Page 60683]]

to apply for the Clean Fuels Grant Program would indicate compliance 
with this certification when submitting its annual certifications and 
assurances. Additionally, grantees purchasing or leasing ``clean 
diesel'' buses would certify that the buses would be operated using 
only ultra-low-sulfur diesel fuel.
Statutory Cross-Cutting Requirements
    5. Since the program is now a discretionary grant program, we 
propose to amend section 624.9 by removing the grant formula because it 
no longer applies. SAFETEA-LU requires that a grant under this program 
be subject to the applicable requirements of 49 U.S.C. 5307. 
Accordingly, we propose to amend section 624.9 by inserting the 
applicable statutory provisions of 49 U.S.C. 5307. Many of these 
requirements are contained in FTA Circular 9030.1C, which is available 
from the FTA Regional Office nearest you. The circular is also on the 
FTA Web site at (https://www.fta.dot.gov).
    Further, all FTA grants provided under chapter 53 of title 49 of 
the United States Code, are subject to applicable requirements of the 
FTA Master Agreement (MA), which is incorporated by reference in the 
grant agreement. Additional project management guidelines and 
requirements may also be found in FTA Circular 5010.1C. The circular 
and the MA are located on the FTA Web site at (https://www.fta.dot.gov).
Reporting
    6. We support the development and deployment of clean fuel and 
advanced propulsion technologies for transit buses. We remain 
interested in collecting relevant information on the operations and 
performance of these clean fuel technology buses to help assess the 
reliability, benefits, and costs of certain technologies compared to 
conventional vehicle technologies.
    Accordingly, we propose to retain the reporting requirements of 
Sec.  624.11, which require grantees receiving program funds for hybrid 
electric, battery electric, and fuel cell vehicles to provide 
information to us on the operations, performance, and maintenance of 
those vehicles purchased or leased with program funds.
    We have determined, however, that semiannual instead of quarterly 
reporting for the first three years of the useful life of the vehicle 
is sufficient for this objective; thus, we propose to provide 
administrative relief by amending the reporting requirements in Sec.  
624.11 from quarterly to semiannually. Submission of data on the 
operation of the vehicle beyond the three-year period would continue to 
be voluntary.
    Likewise, we continue to encourage transit agencies acquiring other 
types of alternative fuel buses (e.g., compressed natural gas (CNG), 
liquefied natural gas (LNG), liquefied petroleum gas (LPG), etc.) to 
voluntarily report similar information. However, recipients acquiring 
clean diesel vehicles are not required to report the data requested 
under section 624.11 because we believe that sufficient information 
about this technology has been compiled.
    We will request Office of Management and Budget (OMB) approval to 
collect information from recipients receiving Federal financial 
assistance under the Clean Fuels program. We intend to collect 
information such as vehicle miles traveled, fuel costs, vehicle fuel/
energy consumption and oil consumption, road calls or breakdowns 
resulting from clean fuel and advanced propulsion technology systems, 
and maintenance costs associated with these systems. You are invited to 
comment on our information collection proposal for evaluating the 
operating costs of clean fuel and advanced propulsion technology 
vehicles. We will use the data collected to provide more accurate 
information to transit agencies for future clean fuel and advanced 
propulsion vehicle acquisitions.

III. Regulatory Analyses and Notices

Statutory/Legal Authority for This Proposed Rulemaking

    This rule is authorized pursuant to section 3010 of SAFETEA-LU, 
which amended section 5308 of Title 49, United States Code. We 
previously implemented section 5308, referred to as the Clean Fuels 
Grant Program, as part 624 of Title 49, Code of Federal Regulations.

Executive Order 12866

    Under Executive Order 12866, the Department of Transportation (DOT) 
must examine whether this proposed rule is a ``significant regulatory 
action.'' A significant regulatory action is subject to OMB review and 
the requirements of the Executive Order (E.O.). E.O. 12866 defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may: (1) Have an annual effect on the economy of $120 million 
or more or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or (4) 
raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the E.O.
    This proposed rule amends an existing grant program and is not 
expected to impose any new compliance costs. Specifically, we propose 
amending the existing program from a formula program to a discretionary 
grant program in accordance with section 3010 of SAFETEA-LU. We believe 
that the industry costs and benefits of the Clean Fuels Grant Program 
do not warrant designating this a significant rule under E.O. 12866 
because it involves grant application procedures and will not cost more 
than $120 million annually. Additionally, we propose to provide 
administrative relief in the reporting criteria by increasing the 
reporting period from quarterly to semiannually. For these reasons, we 
have determined that this proposed rule is a nonsignificant regulatory 
action under section 3(f) of E.O. 12866. Accordingly, it has not been 
reviewed by OMB.

Executive Order 13132

    This proposed rule has been analyzed in accordance with the 
principles and criteria contained in E.O. 13132 (Federalism). This 
proposed rule does not include any provisions that have substantial 
direct effect on the States, the relationship between the national 
government and the States, or the distribution of power and 
responsibilities among the various levels of government. Therefore, the 
consultation and funding requirements of E.O. 13132 do not apply 
because this proposed rule only sets forth application procedures for 
an existing formula grant program that has been statutorily amended to 
a discretionary grant program.

Executive Order 13175

    This proposed rule has been analyzed in accordance with the 
principles and criteria of E.O. 13175 (Consultation and Coordination 
with Indian Tribal Governments). Because the proposal does not have 
tribal implications and does not impose direct compliance costs, the 
funding and consultation requirements of E.O. 13175 do not apply.

Executive Order 13272 and the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), requires each 
agency to

[[Page 60684]]

analyze regulations and proposals to assess their impact on small 
businesses and other small entities to determine whether the rule or 
proposal will have a significant economic impact on a substantial 
number of small entities.
    We evaluated the effects of this proposed rule on small entities 
and determined that it will not have a significant effect on a 
substantial number of small entities. This proposal imposes no new 
costs because it merely modifies the application procedures for an 
existing grant program.

Paperwork Reduction Act

    This proposed rule includes information collection requirements 
subject to the Paperwork Reduction Act. OMB previously approved our 
information collection request under the Clean Fuels Formula Grant 
Program, 2132-0560. However, that approval expired on August 31, 2003, 
because funding was not allocated for the program.
    Now that Congress appropriated funding in fiscal year 2006, we will 
submit a new information collection request to OMB. The affected public 
under this proposed rulemaking remains public transportation providers 
who apply for Federal funds under this program. Our new information 
collection request will not include any new reporting requirements. In 
fact, if the proposals contained in this NPRM are adopted as final, 
recipients would experience a decrease in reporting because we intend 
to extend the reporting period from quarterly to semiannually.
    We solicit comments on the proposed reporting requirements. 
Comments should address: whether the proposed collection of information 
is necessary for the proper performance of the FTA grant process; ways 
to enhance the quality, utility, and clarity of the information 
collected; and ways to minimize the burden of the collection of 
information on the applicants, including the use of alternative 
collection techniques (e.g., filing applications and reports via 
facsimile (fax), electronic mail or other forms of information 
technology).

Unfunded Mandates Reform Act of 1995

    This rule does not propose unfunded mandates under the Unfunded 
Mandates Reform Act of 1995. If the proposals are adopted into a final 
rule, it will not result in costs of $100 million or more (adjusted for 
inflation), in the aggregate, to any of the following: State, local, or 
Native American tribal governments, or the private sector.

National Environmental Policy Act

    The National Environmental Policy Act of 1969, (42 U.S.C. 4321-4347 
as amended), requires Federal agencies to consider the consequences of 
major federal actions and prepare a detailed statement on actions 
significantly affecting the quality of the human environment. Since 
this proposed rule promotes the use of clean fuels in vehicles used for 
public transportation, it potentially may have a positive impact on the 
environment. Alternatively, there are no significant environmental 
impacts associated with this proposed rule.

List of Subjects in 49 CFR Part 624

    Grant Programs--Transportation, Mass transportation, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, FTA proposes to amend 49 
CFR part 624 as follows:

PART 624--CLEAN FUELS GRANT PROGRAM

    1. The authority citation for part 624 continues to read as 
follows:

    Authority: 49 U.S.C. 5308; 49 CFR 1.51.

    2. The heading to part 624 is revised to read as set forth above.
    3. Revise Sec.  624.1 to read as follows:


Sec.  624.1  Eligible applicant.

    (a) An eligible applicant is:
    (1) A designated recipient (designated recipient has the same 
meaning as in 49 U.S.C. 5307(a)(2)); or
    (2) A recipient for an urbanized area with a population of less 
than 200,000 (smaller urbanized area). The State in which the smaller 
urbanized area is located shall act as the recipient.
    (b) An eligible applicant, as defined in paragraph (a) of this 
section, shall operate in an area that is either:
    (1) An ozone or carbon monoxide nonattainment area as specified 
under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or
    (2) A maintenance area for ozone or carbon monoxide.
    4. Amend Sec.  624.3 by revising paragraphs (a) and (c)(3) through 
(6) to read as follows:


Sec.  624.3  Eligible activities.

    (a) Eligible activities include purchasing or leasing clean fuel 
buses and constructing new or improving existing public transportation 
facilities to accommodate clean fuel buses.
* * * * *
    (3) At the discretion of the Administrator, projects relating to 
clean fuel, biodiesel, hybrid electric, or zero emissions technology 
buses that exhibit equivalent or superior emissions reductions to 
existing clean fuel or hybrid electric technologies.
    (4) The Federal share for eligible activities undertaken for the 
purpose of complying with or maintaining compliance with the Clean Air 
Act under this program shall be limited to 90 percent of the net 
(incremental) cost of the activity.
    (i) The Administrator may exercise discretion and determine the 
percentage of Federal share for eligible activities to be less than 90 
percent.
    (ii) An administrative determination per this subsection will be 
published in accordance with Sec.  624.5(a).
    (5) Funding for clean diesel buses shall be limited to not more 
than 25 percent of the amount made available or allocated and 
appropriated each fiscal year to carry out the program.
    (6) Any amount made available or appropriated for this section 
shall remain available to an eligible activity for two years after the 
fiscal year for which the amount is made available or appropriated. Any 
amount that remains unobligated at the end of the three-year-period 
shall be added to the amount made available in the following fiscal 
year.
    5. Revise Sec.  624.5 to read as follows:


Sec.  624.5  Application process.

    (a) FTA shall publish a Notice of Funding Availability in the 
Federal Register each fiscal year that funds are appropriated and 
discretionary funding made available for the Clean Fuels program. The 
notice shall provide the criteria by which the eligible projects will 
be evaluated for selection and the Administrator's administrative 
determination of the net Federal share for projects funded under this 
part.
    (b) The Administrator shall determine the criteria for selecting 
proposed projects for funding, which may include, but are not limited 
to the following factors:
    (1) Whether the proposed project is a transportation control 
measure in an approved State Implementation Plan;
    (2) The benefits of the proposed project in reducing 
transportation-related pollutants;
    (3) Consistency with the recipient's fleet management plan;
    (4) The applicant's ability to implement the project and facilities 
to maintain and fuel the proposed vehicles;
    (5) The applicant's coordination of the proposed project with other 
public transportation entities or other related projects within the 
applicant's Metropolitan Planning Organization or

[[Page 60685]]

the geographic region within which the proposed project will operate.
    (6) The proposed project's ability to support emerging clean fuels 
technologies or advanced technologies for transit buses.
    6. Revise Sec.  624.9 to read as follows:


Sec.  624.9  Grant requirements.

    A grant under this section shall be subject to the following 
requirements of 49 U.S.C. 5307(d):
    (a) General. All recipients shall maintain and report financial and 
operating information on an annual basis, as prescribed in 49 CFR part 
630 et seq., and the most recent National Transit Database Reporting 
Manual.
    (b) Labor Standards. As a condition of financial assistance under 
49 U.S.C. 5308, the interests of employees affected by the assistance 
shall be protected under arrangements that the Secretary of Labor 
concludes are fair and equitable.
    (c) Satisfactory Continuing Control. (1) An FTA grantee shall:
    (i) Maintain control over federally funded property;
    (ii) Ensure that it is used in transit service; and
    (iii) Dispose of it in accordance with Federal requirements.
    (2) Under this paragraph (c), if the grantee leases federally 
funded property to another party, the lease must provide the grantee 
satisfactory continuing control over the use of that property as 
determined in two areas: real property (land) and facilities; and 
personal property (equipment and rolling stock, both revenue and non-
revenue).
    (d) Maintenance. The grant applicant shall certify annually that 
pursuant to 49 U.S.C. 5307(d)(1)(C), it will maintain (federally 
funded) facilities and equipment. In addition, the grantee shall keep 
equipment and facilities acquired with Federal assistance in good 
operating order, which includes maintenance of rolling stock (revenue 
and non-revenue), machinery and equipment, and facilities.
    (e) Rates Charged Elderly and Persons with Disabilities during 
Nonpeak Hours. In accordance with 49 U.S.C. 5307(d)(1)(D), the grant 
applicant shall certify that the rates charged the elderly and persons 
with disabilities during nonpeak hours for fixed-route transportation 
using facilities and equipment financed with Federal assistance from 
FTA will not exceed one-half of the rates generally applicable to other 
persons at peak hours, whether the operation is by the applicant or by 
another entity under lease or otherwise.
    (f) Use of Competitive Procurements. Pursuant to 49 U.S.C. 
5307(d)(1)(E), the grant applicant shall certify that it will use 
competitive procurements and will not use procurements employing 
exclusionary or discriminatory specifications.
    (g) Compliance with Buy America Provisions. The grant applicant 
shall certify that in carrying out a procurement authorized for this 
program, the applicant will comply with applicable Buy America laws.
    (h) Certification that Local Funds Are Available for the Project. 
The grant applicant shall certify that the local funds are or will be 
available to carry out the project.
    (i) Compliance with National Policy Concerning Elderly Persons and 
Individuals with Disabilities. The grant applicant shall certify that 
it will comply with the requirements of 49 U.S.C. 5301(d) concerning 
the rights of elderly persons and persons with disabilities.
    (j) FTA Master Agreement. The grant applicant shall comply with 
applicable provisions of the FTA Master Agreement which is incorporated 
by reference in the grant agreement.
    7. Amend Sec.  624.11 by revising paragraph (a) introductory text 
and (c) to read as follows:


Sec.  624.11  Reporting.

    (a) Recipients of financial assistance under 49 U.S.C. 5308 who 
purchase or lease hybrid electric, battery electric and fuel cell 
vehicles shall report semiannually the following information to the 
appropriate FTA Regional Office for the first three years of the useful 
life of the vehicle:
* * * * *
    (c) Recipients of financial assistance under 49 U.S.C. 5308 that 
purchase or lease clean diesel vehicles are not required to report 
information beyond FTA grant reporting requirements for capital 
projects.

Appendix A to Part 624 [Removed]

    8. Remove Appendix A to part 624.

    Issued in Washington, DC, this 10th day of October, 2006.
James S. Simpson,
Administrator, Federal Transit Administration.
 [FR Doc. E6-17071 Filed 10-13-06; 8:45 am]
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