FTA Fiscal Year 2007 Apportionments and Allocations and Program Information, 13872-13966 [07-1290]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 72, Number 56 (Friday, March 23, 2007)]
[Notices]
[Pages 13872-13966]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-1290]



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Part II





Department of Transportation





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Federal Transit Administration



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FTA Fiscal Year 2007 Apportionments and Allocations and Program 
Information; Notice

Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2007 Apportionments and Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The ``Revised Continuing Appropriations Resolution, 2007,'' 
(Public Law 110-5), signed into law by President Bush on February 15, 
2007, makes funds available for all of the surface transportation 
programs of the Department of Transportation (DOT) for the Fiscal Year 
(FY) ending September 30, 2007. This notice provides information on the 
FY 2007 funding available for the Federal Transit Administration (FTA) 
assistance programs, and provides program guidance and requirements, 
and information on several program issues important in the current 
year. The notice also includes tables that show unobligated carryover 
funding available in FY 2007 under certain discretionary programs from 
prior years. Finally, this notice also references separate Notices of 
Funding Availability (NOFA) published concurrently for discretionary 
opportunities under the Bus and Bus Facilities Program and the 
Alternatives Analysis Program.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact Mary Martha Churchman, 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. The Appendix at the end of this notice includes contact 
information for FTA regional offices. An FTA headquarters contact for 
each major program area is also included in the discussion of that 
program in the text of the notice.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. FY 2007 Funding for FTA Programs
    A. Funding Based on FY 2007 Continuing Appropriations 
Resolution, 2007, and SAFETEA-LU Authorization
    B. Program Funds Set-aside for Project Management Oversight
III. FY 2007 FTA Key Program Initiatives and Changes
    A. SAFETEA-LU Implementation
    B. Planning Emphasis Areas
    C. Earmarks and Competitive Grant Opportunities
    D. Changes in Flexible Funding Procedures
    E. National Transit Database (NTD) Strike Policy
IV. FTA Programs
    A. Metropolitan Planning Program (49 U.S.C. 5303)
    B. Statewide Planning and Research Program (49 U.S.C. 5304)
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Clean Fuels Formula Program (49 U.S.C. 5308)
    E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization
    F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-
Related Facilities
    G. Capital Investment Program (49 U.S.C. 5309)--New Starts
    H. Special Needs of Elderly Individuals and Individuals with 
Disabilities Program (49 U.S.C. 5310)
    I. Nonurbanized Area Formula Program (49 U.S.C. 5311)
    J. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    K. Public Transportation on Indian Reservation Program (49 
U.S.C. 5311(c))
    L. National Research Program (49 U.S.C. 5314)
    M. Job Access and Reverse Commute Program (49 U.S.C. 5316)
    N. New Freedom Program (49 U.S.C. 5317)
    O. Alternative Transportation in Parks and Public Lands (49 
U.S.C. 5320)
    P. Alternatives Analysis Program (49 U.S.C. 5339)
    Q. Growing States and High Density States Formula (49 U.S.C. 
5340)
    R. Over-the-Road Bus Accessibility Program (49 U.S.C. 5310 note)
V. FTA Policy and Procedures for FY 2007 Grants Requirements
    A. Automatic Pre-Award Authority to Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FTA FY 2007 Annual List of Certifications and Assurances
    D. FHWA Funds Used for Transit Purposes
    E. Grant Application Procedures
    F. Payments
    G. Oversight
    H. Technical Assistance
Tables
    1. FTA FY 2007 Appropriations and Apportionments for Grant 
Programs
    2. FTA FY 2007 Metropolitan Transportation Planning Program and 
Statewide Transportation Planning Program Apportionments
    3. FTA FY 2007 Section 5307 and Section 5340 Urbanized Area 
Apportionments
    4. FTA FY 2007 Section 5307 Apportionment Formula
    5. FTA FY 2007 Formula Programs Apportionments Data Unit Values
    6. FTA FY 2007 Small Transit Intensive Cities Performance Data 
and Apportionments
    7. 2000 Census Urbanized Areas 200,000 or More in Population 
Eligible to Use Section 5307 Funds for Operating Assistance
    8. FTA FY 2007 Section 5308 Clean Fuels Grant Program 
Allocations
    9. FTA Prior Year Unobligated Section 5308 Clean Fuels 
Allocations
    10. FTA FY 2007 Section 5309 Fixed Guideway Modernization 
Apportionments
    11. FTA FY 2007 Fixed Guideway Modernization Program 
Apportionment Formula
    12. FTA FY 2007 Section 5309 Bus and Bus-Related Allocations
    13. FTA Prior Year Unobligated Section 5309 Bus and Bus-Related 
Facilities Allocations
    14. FTA FY 2007 Section 5309 New Starts Allocations
    15. FTA Prior Year Unobligated Section 5309 New Starts 
Allocations
    16. FTA FY 2007 Special Needs for Elderly Individuals and 
Individuals With Disabilities Apportionments
    17. FTA FY 2007 Section 5311 and Section 5340 Nonurbanized Area 
Formula Apportionments, and Rural Transportation Assistance Program 
(RTAP) Allocations
    18. FTA FY 2007 National Research Program Allocations
    19. FTA FY 2007 Section 5316 Job Access and Reverse Commute 
(JARC) Apportionments
    20. FTA Prior Year Unobligated Jarc Allocations
    21. FTA FY 2007 Section 5317 New Freedom Apportionments
    22. FTA FY 2007 Section 5339 Alternative Analysis Allocations
    23. FTA Prior Year Unobligated Section 5339 Alternative Analysis 
Alliocations
Appendix

I. Overview

    This document apportions or allocates the FY 2007 funds available 
under the Continuing Appropriations Resolution, 2007, among potential 
program recipients according to statutory formulas in 49 U.S.C. Chapter 
53 or congressional designations in Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
    For each FTA program included, we have provided relevant 
information on the FY 2007 funding currently available, requirements, 
period of availability, and other related program information and 
highlights, as appropriate. A separate section of the document provides 
information on requirements and guidance that are applicable to all FTA 
programs.

II. FY 2007 Funding for FTA Programs

A. Funding Based on FY 2007 Continuing Appropriations Resolution, 2007, 
and SAFETEA-LU Authorization

    The Revised Continuing Appropriations Resolution, 2007, (Pub. L. 
110-5, February 15, 2007); hereafter called the Continuing 
Appropriations Resolution, 2007, provides general funds and obligation 
authority for trust funds that total $8.97 billion for FTA programs, 
through September 30, 2007. Table 1 of this document shows the funding 
for the FTA programs, as provided for in the Continuing

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Appropriations Resolution, 2007, and the reallocation of any prior year 
funds to the program. All the Formula Programs and the Section 5309 Bus 
and Bus Facilities Program are entirely funded from the Mass Transit 
Account of the Highway Trust Fund in FY 2007. The Section 5309 New 
Starts program, the Research program, and FTA administrative expenses 
are funded by appropriations from the General Fund of the Treasury.
    Congress has enacted a full year Continuing Appropriations 
Resolution, 2007, in lieu of a new Appropriations Act for FY 2007. This 
Notice includes tables of apportionments and allocations for FTA 
programs. Allocations based on SAFETEA-LU are included for some 
discretionary programs. In addition, FTA will issue separate Notices of 
Funding Availability to solicit applications for discretionary funds 
not allocated in SAFETEA-LU.

B. Program Funds Set-Aside for Project Management Oversight

    FTA uses a percentage of funds appropriated to certain FTA programs 
for program oversight activities conducted by the agency. The funds are 
used to provide necessary oversight activities, including oversight of 
the construction of any major project under these statutory programs; 
to conduct safety and security, civil rights, procurement, management 
and financial reviews and audits; and to provide technical assistance 
to correct deficiencies identified in compliance reviews and audits.
    Section 5327 of title 49, U.S.C., 5327 authorizes the takedown of 
funds from FTA programs for project management oversight. Section 5327 
provides oversight takedowns at the following levels: 0.5 percent of 
Planning funds, 0.75 percent of Urbanized Area Formula funds, 1 percent 
of Capital Investment funds, 0.5 percent of Special Needs of Elderly 
Individuals and Individuals with Disabilities formula funds, 0.5 
percent of Nonurbanized Area Formula funds, and 0.5 percent of 
Alternative Transportation in the Parks and Public Lands funds.

III. FY 2007 FTA Program Initiatives and Changes

A. SAFETEA-LU Implementation.

    In FY 2007, FTA continues to focus on implementation of SAFETEA-LU 
through issuance of new and revised program guidance and regulations. 
As any documents that include binding obligations on grantees are 
issued, FTA makes them available for public comment prior to 
finalizing. We encourage grantees to regularly check the FTA Web site 
at https://www.fta.gov and the DOT docket management Web site at https://
dms.dot.gov for new issuances and to comment to the docket established 
for each document on relevant issues.

B. Planning Emphasis Areas

    FTA and the Federal Highway Administration (FHWA) are not issuing 
new planning emphasis areas for FY 2007, and are rescinding planning 
emphasis areas from prior years, in recognition of the priority that 
planning organizations and grantees must pay to implementing the new 
and changed provisions of SAFETEA-LU.

C. Earmarks and Competitive Grant Opportunities

    The Continuing Appropriations Resolution, 2007, did not include any 
new earmarks under any FTA program. However, SAFETEA-LU contained 
statutory earmarks under several programs, and they are listed in the 
tables in this Notice. FTA will honor those statutory earmarks. This 
Notice also includes tables of unobligated balances for earmarks from 
prior years under the Bus and Bus Facilities Program, the New Starts 
Program, the Clean Fuels Program, and the Alternatives Analysis 
Program. FTA will continue to honor those earmarks.
    Because there are no new appropriations earmarks in FY 2007, there 
are unallocated balances available in several programs to be 
administered at FTA's discretion. FTA has allocated most of the 
discretionary New Starts funds to the projects listed in the 
President's Budget for FY 2007. FTA is soliciting applications for the 
unallocated balance of the Bus and Bus Facilities program through two 
Notices of Funding Availability, one published in a separate Part of 
today's Federal Register to address priorities identified by FTA, and 
the other, published in another Part of today's Federal Register, to 
support the Department's Congestion Initiative. FTA is also issuing a 
Notice of Funding Availability to solicit applications for the 
Alternatives Analysis program to advance the state of the art of 
planning for New Starts projects, included in yet another Part of 
today's Federal Register.

D. Changes in Flexible Funding Procedures

    FHWA has changed the accounting procedures for flexible funds, high 
priority projects and transportation improvement projects transfers to 
FTA. As a result, FTA will no longer be able to combine these 
transferred funds in a single grant with FTA funds in the program to 
which they are transferred. FTA is establishing new codes and 
procedures for grants involving funds transferred from FHWA. See 
Section V D of this Notice for more information.

E. National Transit Database (NTD) Strike Policy

    It has been FTA's policy not to make adjustments to the annual 
funding apportionment of transit agencies for strikes, labor disputes 
or work stoppages. FTA has changed this policy. Effective with NTD 
Report Year (RY) 2005 data, FTA will make ``hold harmless'' adjustments 
due to strikes, labor disputes, or work stoppages. An adjustment will 
be made beginning with the FY 2008 apportionment.
    NTD RY 2005 data are the actual data used in apportionment of FY 
2007 funds. NTD RY 2006 data will be used in the FY 2008 apportionment. 
If your agency had a valid strike, labor dispute or work stoppage 
during RY 2005 or RY 2006, please contact the NTD Web site.
    Instructions for requesting a ``hold harmless'' adjustment can be 
found in the 2006 NTD Reporting Manual, https://www.ntdprogram.gov, 
under publications; see Introduction, page 7.

IV. FTA Programs

    This section of the notice provides available FY 2007 funding and 
other important program-related information for the three major FTA 
funding accounts included in the notice (Formula and Bus Grants, 
Capital Investment Grants, and Research). Of the 17 separate FTA 
programs contained in this notice that fall under the major program 
area headings, the funding for ten is apportioned by statutory or 
administrative formula. Funding for the other seven is allocated on a 
discretionary or competitive basis.
    Funding and other important information for each of the 17 programs 
is presented immediately below. This includes program apportionments or 
allocations, certain program requirements, length of time FY 2007 
funding is available to be committed, and other significant program 
information pertaining to FY 2007, including the availability of 
competitive opportunities under several programs.

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

    Section 5303 authorizes a cooperative, continuous, and 
comprehensive planning program for transportation investment decision-
making at the metropolitan area level. State Departments of 
Transportation are direct recipients of funds, which are

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then allocated to Metropolitan Planning Organizations (MPOs) by 
formula, for planning activities that support the economic vitality of 
the metropolitan area, especially by enabling global competitiveness, 
productivity, and efficiency; increasing the safety and security of the 
transportation system for motorized and non-motorized users; increasing 
the accessibility and mobility options available to people and for 
freight; protecting and enhancing the environment, promoting energy 
conservation, and improving quality of life; enhancing the integration 
and connectivity of the transportation system, across and between 
modes, for people and freight; promoting efficient system management 
and operation; and emphasizing the preservation of the existing 
transportation system. For more about the Metropolitan Planning 
Program, contact Candace Noonan, Office of Planning and Environment at 
(202) 366-1648.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$81,892,800 to the Metropolitan Planning Program (49 U.S.C. 5303). The 
total amount apportioned for the Metropolitan Planning Program (to 
States for MPOs' use in urbanized areas (UZAs) is $82,373,861, as shown 
in the table below, after the deduction for oversight (authorized by 49 
U.S.C. Section 5327) and addition of prior year reapportioned funds.

              Metropolitan Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................        $81,892,800
------------------------------------------------------------------------
Oversight Deduction..................................           -464,464
Prior Year Funds Added...............................            890,525
                                                      ------------------
  Total Apportioned..................................         82,373,861
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    States' apportionments for this program are displayed in Table 2.

2. Basis for Formula Apportionments

    As specified in law, 82.72 percent of the amounts authorized for 
Section 5305 are allocated to the Metropolitan Planning program. FTA 
allocates Metropolitan Planning funds to the States according to a 
statutory formula. Eighty percent of the funds are distributed to the 
States as a basic allocation based on each State's UZA population, 
based on the most recent Census. The remaining 20 percent is provided 
to the States as a supplemental allocation based on an FTA 
administrative formula to address planning needs in the larger, more 
complex UZAs. The amount published for each State is a combined total 
of both the basic and supplemental allocation.
3. Program Requirements
    The State allocates Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for projects included in an annual 
work program (the Unified Planning Work Program, or UPWP) that includes 
both highway and transit planning projects. Each State has either 
reaffirmed or developed, in consultation with their MPOs, a new 
allocation formula, as a result of the 2000 Census. The State 
allocation formula 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 
C8100.1B, Program Guidance and Application Instructions for 
Metropolitan Planning Program Grants, dated October 25, 1996. FTA is in 
the process of updating this circular to incorporate references to the 
new and changed planning requirements in sections 5303 and 5305, as 
amended by SAFETEA-LU and associated rulemaking.
4. Period of Availability
    The funds apportioned under the Metropolitan Planning program 
remain available to be obligated by FTA to recipients for four fiscal 
years--which includes the year of apportionment plus three additional 
years. Any apportioned funds that remain unobligated at the close of 
business on September 30, 2010, will revert to FTA for reapportionment 
under the Metropolitan Planning Program.
5. Other Program or Apportionment Related Information and Highlights
    a. Planning Emphasis Areas (PEAs). FTA and FHWA are not issuing new 
PEAs this year, and are rescinding PEAs issued in prior years, in light 
of the priority given to implementation of SAFETEA-LU planning and 
program provisions.
    b. Consolidated Planning Grants. FTA and FHWA planning funds can be 
consolidated into a single consolidated planning grant (CPG), awarded 
by either FTA or FHWA. The CPG eliminates the need to monitor 
individual fund sources, if several have been used, and ensures that 
the oldest funds will always be used first. Unlike ``flex funds,'' 
State planning funds from FHWA will be able to be combined with FTA 
planning funds in a single grant. Alternatively FTA planning funds can 
be transferred to FHWA for administration.
    Under the CPG, States can report metropolitan planning expenditures 
(to comply with the Single Audit Act) for both FTA and FHWA under the 
Catalogue of Federal Domestic Assistance number for FTA's Metropolitan 
Planning Program (20.505). Additionally, for States with an FHWA 
Metropolitan Planning (PL) fund-matching ratio greater than 80 percent, 
the State (through FTA) can request a waiver of the 20 percent local 
share requirement in order that all FTA funds used for metropolitan 
planning in a CPG can 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.
    For further information on CPGs, contact Candace Noonan, Office of 
Planning and Environment, FTA, at (202) 366-1648, or Kenneth Petty, 
Office of Planning and Environment, FHWA, at (202) 366-6654.

B. Statewide Planning and Research Program (49 U.S.C. 5304)

    This program provides financial assistance to States for Statewide 
planning and other technical assistance activities (including 
supplementing the technical assistance program provided through the 
Metropolitan Planning program), planning support for nonurbanized 
areas, research, development and demonstration projects, fellowships 
for training in the public transportation field, university research, 
and human resource development. For more about the Statewide Planning 
and Research Program contact Candace Noonan, Office of Planning and 
Environment, at (202) 366-1648.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$17,107,200 to the Statewide Planning and Research Program (49 U.S.C. 
5304). The total amount apportioned for the Statewide Planning and 
Research Program (SPRP) is $17,252,652, as shown in the table below, 
after the deduction for oversight (authorized by 49 U.S.C. Section 
5327) and addition of prior year reapportioned funds.

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                Statewide Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................        $17,107,200
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Oversight Deduction..................................            -85,536
Prior Year Funds Added...............................            230,988
                                                      ------------------
  Total Apportioned..................................         17,252,652
------------------------------------------------------------------------

    State apportionments for this program are displayed in Table 2.
2. Basis for Apportionment Formula
    As specified in law, 17.28 percent of the amounts authorized for 
Section 5305 are allocated to the Statewide Planning and Research 
program. FTA apportions funds to States by a statutory formula that is 
based on information received from the latest decennial census, and the 
State's UZA population as compared to the UZA population of all States. 
However, a State must receive at least 0.5 percent of the amount 
apportioned under this program.
3. Requirements
    Funds are provided to States for statewide planning and research 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, management 
training, and cooperative research. 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 Statewide Planning and Research 
program is found in FTA Circular C8200.1, Program Guidance and 
Application Instructions for State Planning and Research Program 
Grants, dated December 27, 2001. FTA is in the process of updating this 
circular to incorporate the new and changed planning requirements in 
sections 5304 and 5305, as amended by SAFETEA-LU and associated 
rulemaking.
4. Period of Availability
    The funds apportioned under the Statewide Planning and Research 
program remain available to be obligated by FTA to recipients for four 
fiscal years--which include the year of apportionment plus three 
additional fiscal years. Any apportioned funds that remain unobligated 
at the close of business on September 30, 2010, will revert to FTA for 
reapportionment under the Statewide Planning and Research Program.
5. Other Program or Apportionment Related Information and Highlights
    The information about Planning Emphasis Areas and CPGs described in 
Section A. 5, above for the Metropolitan Planning Program (49 U.S.C. 
5303), also applies to the Statewide Planning Program.

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

    Section 5307 authorizes Federal capital and operating assistance 
for transit in Urbanized Areas (UZAs). A UZA is an area with a 
population of 50,000 or more that has been defined and designated as 
such in the most recent decennial census by the U.S. Census Bureau. The 
Urbanized Area Formula Program may also be used to support planning 
activities, as a supplement to that funded under the Metropolitan 
Planning program described above. Urbanized Areas Formula Program funds 
used for planning must be shown in the UPWP for MPO(s) with 
responsibility for that area. Funding is apportioned directly to each 
UZA with a population of 200,000 or more, and to the State Governors 
for UZAs with populations between 50,000 and 200,000. Eligible 
applicants are limited to entities designated as recipients in 
accordance with 49 U.S.C. 5307(a)(2) and other public entities with the 
consent of the Designated Recipient. Generally, operating assistance is 
not an eligible expense for UZAs with populations of 200,000 or more. 
However, there are several exceptions to this restriction. The 
exceptions are described in section 2(e) below.
    For more information about the Urbanized Area Formula Program 
contact Scott Faulk, Office of Transit Programs, at (202) 366-2053.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$3,606,175,000 to the Urbanized Area Formula Program (49 U.S.C. 5307). 
The total amount apportioned for the Urbanized Area Formula Program is 
$3,924,820,789 as shown in the table below, after the deduction for 
oversight (authorized by 49 U.S.C. 5327) and including prior year 
reapportioned funds and funds apportioned to UZA's from the 
appropriation for Section 5340 for Growing States and High Density 
States.

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................     $3,606,175,000
                                                                     \a\
------------------------------------------------------------------------
Oversight Deduction..................................        -27,046,313
Prior Year Funds Added...............................          4,957,616
Section 5340 Funds Added.............................        340,734,486
                                                      ------------------
  Total Apportioned..................................     3,924,820,789
------------------------------------------------------------------------
\a\ Includes $36,061,750 for one percent set-aside for Small Transit
  Intensive Cities Formula.

    Table 3 displays the amounts apportioned under the Urbanized Area 
Formula Program.
2. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
legislative formulas. Different formulas apply to UZAs with populations 
of 200,000 or more and UZAs with populations less than 200,000. For 
UZAs 50,000 to 199,999 in population, the formula is based simply on 
population and population density. For UZAs with populations of 200,000 
and more, the formula is based on a combination of bus revenue vehicle 
miles, bus passenger miles, fixed guideway revenue vehicle miles, and 
fixed guideway route miles, as well as population and population 
density. Table 4 includes detailed information about the formulas.
    To calculate a UZA's FY 2007 apportionment, FTA used population and 
population density statistics from the 2000 Census and (when 
applicable) validated mileage and transit service data from transit 
providers' 2005 National Transit Database (NTD) Report Year. Also, 
pursuant to 49 U.S.C. 5336(b). FTA used 60 percent of the directional 
route miles attributable to the Alaska Railroad passenger operations 
system to calculate the apportionment for the Anchorage, Alaska UZA.
    We have calculated dollar unit values for the formula factors used 
in the Urbanized Area Formula Program apportionment calculations. These 
values represent the amount of money each unit of a factor is worth in 
this year's apportionment. The unit values change each year, based on 
all of the data used to calculate the apportionments. The dollar unit 
values for FY 2007 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).

[[Page 13876]]

    In FY 2007, one percent of funds appropriated for Section 5307, 
$36,061,750, is set aside for Small Transit Intensive Cities (STIC). 
FTA apportions these funds to UZAs under 200,000 in population that 
operate at a level of service equal to or above the industry average 
level of service for all UZAs with a population of at least 200,000, 
but not more than 999,999, in one or more of six performance 
categories: passenger miles traveled per vehicle revenue mile, 
passenger miles traveled per vehicle revenue hour, vehicle revenue 
miles per capita, vehicle revenue hours per capita, passenger miles 
traveled per capita, and passengers per capita.
    The data for these categories for the purpose of FY 2007 
apportionments comes from the NTD reports for the 2005 reporting year. 
This data is used to determine a UZA's eligibility under the STIC 
formula, and is also used in the STIC apportionment calculations. 
Because this performance data change with each year's NTD reports, the 
UZAs eligible for STIC funds and the amount each receives may vary each 
year. In FY 2007, FTA apportioned $120,608 for each performance factor/
category for which the urbanized area exceeded the national average for 
UZAs with a population of at least 200,000 but not more than 999,999.
    In addition to the funds apportioned to UZAs, according to the 
Section 5307 formula factors contained in 49 U.S.C. 5336, FTA also 
apportions funds to urbanized areas under Section 5340 Growing States 
and High Density States formula factors. In FY 2007, FTA apportioned 
$138,734,486 to 453 UZA's in 50 Growing States and $202,000,000 to 46 
UZA's in seven High Density States. Half of the funds appropriated for 
Section 5340 are available to Growing States and half to High Density 
States. FTA apportions Growing States funds by a formula based on State 
population forecasts for 15 years beyond the most recent Census. FTA 
distributes the amounts apportioned for each State between UZAs and 
nonurbanized areas based on the ratio of urbanized/nonurbanized 
population within each State in the 2000 census. FTA apportions the 
High Density States funds to States with population densities in excess 
of 370 persons per square mile. These funds are apportioned only to 
UZAs within those States. FTA pro-rates each UZA's share of the High 
Density funds based on the population of the UZAs in the State in the 
2000 census.
    FTA cannot provide unit values for the Growing States or High 
Density formulas because the allocations to individual States and 
urbanized areas are based on their relative population data, rather 
than on a national per capita basis.
    Based on language in the SAFETEA-LU conference report that directs 
FTA to show a single apportionment amount for Section 5307, STIC and 
Section 5340, FTA shows a single Section 5307 apportionment amount for 
each UZA in Table 3, the Urbanized Area Formula apportionments. The 
amount includes funds apportioned based on the Section 5307 formula 
factors, any STIC funds, and any Growing States and High Density States 
funding allocated to the area. FTA uses separate formulas calculations 
to generate the respective apportionment amounts for the Section 5307, 
STIC and Section 5340. For technical assistance purposes, the UZAs that 
received STIC funds are listed in Table 6. FTA will make available 
breakouts of the funding allocated to each UZA under these formulas, 
upon request to the regional office.
3. Program Requirements
    Program guidance for the Urbanized Area Formula Program is 
presently found in FTA Circular C9030.1C, Urbanized Area Formula 
Program: Grant Application Instructions, dated October 1, 1998, and 
supplemented by additional information or changes provided in this 
document. FTA is in the process of updating the circular to incorporate 
changes resulting from language in SAFETEA-LU. Several important 
program requirements are highlighted below.
    a. Urbanized Area Formula Apportionments to Governors. For small 
UZAs, those with a population of less than 200,000, FTA apportions 
funds to the Governor of each State for distribution. A single total 
Governor apportionment amount for the Urbanized Area Formula, STIC, and 
Growing States and High Density States is shown in the Urbanized Area 
Formula Apportionment table 3. The table also shows the apportionment 
amount attributable to each small UZA within the State. The Governor 
may determine the sub-allocation of funds among the small UZAs except 
that funds attributed to a small UZA that is located within the 
planning boundaries of a Transportation Management Area (TMA) must be 
obligated to that small UZA, as discussed in subsection f below.
    b. Transit Enhancements. Section 5307(d)(1)(K) requires that one 
percent of Section 5307 funds apportioned to UZAs with populations of 
200,000 or more be spent on eligible transit enhancement activities or 
projects. This requirement is now treated as a certification, rather 
than as a set-aside as was the case under the Transportation Equity Act 
for the 21st Century (TEA-21). Designated recipients in UZAs with 
populations of 200,000 or more certify they are spending not less than 
one percent of Section 5307 funds for transit enhancements. In 
addition, Designated Recipients must submit an annual report on how 
they spent the money with the Federal fiscal year's final quarterly 
progress report in TEAM-Web. The report should include the following 
elements: (a) Grantee name, (b) UZA name and number, (c) FTA project 
number, (d) transit enhancement category, (e) brief description of 
enhancement and progress towards project implementation, (f) activity 
line item code from the approved budget, and (g) amount awarded by FTA 
for the enhancement. The list of transit enhancement categories and 
activity line item (ALI) codes may be found in the table of Scope and 
ALI codes on TEAM-Web, which can be accessed at https://
FTATEAMWeb.fta.dot.gov.
    The term ``transit enhancement'' includes projects or project 
elements that are designed to enhance public transportation service or 
use and are physically or functionally related to transit facilities. 
Eligible enhancements include the following: (1) Historic preservation, 
rehabilitation, and operation of historic mass transportation 
buildings, structures, and facilities (including historic bus and 
railroad facilities); (2) bus shelters; (3) landscaping and other 
scenic beautification, including tables, benches, trash receptacles, 
and street lights; (4) public art; (5) pedestrian access and walkways; 
(6) bicycle access, including bicycle storage facilities and installing 
equipment for transporting bicycles on mass transportation vehicles; 
(7) transit connections to parks within the recipient's transit service 
area; (8) signage; and (9) enhanced access for persons with 
disabilities to mass transportation.
    It is the responsibility of the MPO to determine how the one-
percent for transit enhancements will be allotted to transit projects. 
The one percent minimum requirement does not preclude more than one 
percent from being expended in a UZA for transit enhancements. However, 
activities that are only eligible as enhancements--in particular, 
operating costs for historic facilities--may be assisted only within 
the one-percent funding level.
    c. Transit Security Projects. Pursuant to section 5307(d)(1)(J), 
each recipient of Urbanized Area Formula funds must certify that of the 
amount received each

[[Page 13877]]

fiscal year, it will expend at least one percent on ``public 
transportation security projects'' or must certify that it has decided 
the expenditure is not necessary. For applicants not eligible to 
receive Section 5307 funds for operating assistance, only capital 
security projects may be funded with the one percent. SAFETEA-LU, 
however, expanded the definition of eligible ``capital'' projects to 
include specific crime prevention and security activities, including: 
(1) Projects to refine and develop security and emergency response 
plans; (2) projects aimed at detecting chemical and biological agents 
in public transportation; (3) the conduct of emergency response drills 
with public transportation agencies and local first response agencies; 
and (4) security training for public transportation employees, but 
excluding all expenses related to operations, other than such expenses 
incurred in conducting emergency drills and training. New ALI codes 
have been established for these four new capital activities. The one 
percent may also include security expenditures included within other 
capital activities, and, where the recipient is eligible, operating 
assistance. The relevant ALI codes would be used for those activities.
    FTA is often called upon to report to Congress and others on how 
grantees are expending Federal funds for security enhancements. To 
facilitate tracking of grantees' security expenditures, which are not 
always evident when included within larger capital or operating 
activity line items in the grant budget, we have established a non-
additive (``non-add'') scope code for security expenditures--Scope 991. 
The non-add scope is to be used to aggregate activities included in 
other scopes, and it does not increase the budget total. Section 5307 
grantees should include this non-add scope in the project budget for 
each new Section 5307 grant application or amendment. Under this non-
add scope, the applicant should repeat the full amount of any of the 
line items in the budget that are exclusively for security and include 
the portion of any other line item in the project budget that is 
attributable to security, using under the non-add scope the same line 
item used in the project budget. The grantee can modify the ALI 
description or use the extended text feature, if necessary, to describe 
the security expenditures.
    The grantee must provide information regarding its use of the one 
percent for security as part of each Section 5307 grant application, 
using a special screen in TEAM-Web. If the grantee has certified that 
it is not necessary to expend one percent for security, the Section 
5307 grant application must include information to support that 
certification. FTA will not process an application for a Section 5307 
grant until the security information is complete.
    d. FY 2007 Operating Assistance. UZAs under 200,000 population may 
use Section 5307 funds for operating assistance. In addition, Section 
5307, as amended by, SAFETEA-LU and TEA-21, allows some UZAs with a 
population of 200,000 or more to use FY 2007 Urbanized Area Formula 
funds for operating assistance under certain conditions. The specific 
provisions allowing the limited use of operating assistance in large 
UZAs are as follows:
    (1) Section 5307(b)(2) allows UZAs that grew in population from 
under 200,000 to over 200,000, as a result of the 2000 Census to use FY 
2007 funds for operating assistance in an amount up to 25 percent of 
the grandfathered amount for FY 2005 funds. (The provision is 
completely phased out in FY 2008.) Table 7 shows the maximum amount of 
each eligible UZA's Section 5307 apportionment that can be used for 
operating assistance.
    (2) Section 5307(b)(1)(E) provides for grants for the operating 
costs of equipment and facilities for use in public transportation in 
the Evansville, IN-KY urbanized area, for a portion or portions of the 
UZA if: the portion of the UZA includes only one State; the population 
of the portion is less than 30,000; and the grants will be not used to 
provide public transportation outside of the portion of the UZA.
    (3) Section 5307(b)(1)(F) provides operating costs of equipment and 
facilities for use in public transportation for local governmental 
authorities in areas which adopted transit operating and financing 
plans that became a part of the Houston, Texas, UZA as a result of the 
2000 decennial census of population, but lie outside the service area 
of the principal public transportation agency that serves the Houston 
UZA.
    (4) Section 5336(a)(2) prescribes the formula to be used to 
apportion Section 5307 funds to UZAs with population of 200,000 or 
more. SAFETEA-LU amended 5336(a)(2) to add language that stated, ``* * 
* except that the amount apportioned to the Anchorage urbanized area 
under subsection (b) shall be available to the Alaska Railroad for any 
costs related to its passenger operations.'' This language has the 
effect of directing that funds apportioned to the Anchorage urbanized 
area, under the fixed guideway tiers of the Section 5307 apportionment 
formula, be made available to the Alaska Railroad, and that these funds 
may be used for any capital or operating costs related to its passenger 
operations.
    (5) Section 3027(c)(3) of TEA-21, as amended (49 U.S.C. 5307 note), 
provides an exception to the restriction on the use of operating 
assistance in a UZA with a population of 200,000 or more, by allowing 
transit providers/grantees that provide service exclusively to elderly 
persons and persons with disabilities and that operate 20 or fewer 
vehicles to use Section 5307 funds apportioned to the UZA for operating 
assistance. The total amount of funding made available for this purpose 
under Section 3027(c)(3) is $1.4 million. Transit providers/grantees 
eligible under this provision have already been identified and 
notified.
    e. Sources of Local Match. Pursuant to Section 5307(e), the Federal 
share of an urbanized area formula grant is 80 percent of net project 
cost for a capital project and 50 percent of net project cost for 
operating assistance. The remainder of the net project cost (i.e., 20 
percent and 50 percent, respectively) shall be provided from the 
following sources:
    1. In cash from non-Government sources other than revenues from 
providing public transportation services;
    2. From revenues derived from the sale of advertising and 
concessions;
    3. From an undistributed cash surplus, a replacement or 
depreciation cash fund or reserve, or new capital;
    4. From amounts received under a service agreement with a State or 
local social service agency or private social service organization; and
    5. Proceeds from the issuance of revenue bonds.
    In addition, funds from Section 403(a)(5)(C)(vii) of the Social 
Security Act (42 U.S.C. 603(a)(5)(C)(vii)) can be used to match 
Urbanized Area Formula funds.
    f. Designated Transportation Management Areas (TMA). Guidance for 
setting the boundaries of TMAs is in the joint transportation planning 
regulations codified at 23 CFR Part 450 and 49 CFR Part 613. In some 
cases, the TMA planning boundaries established by the MPO for the 
designated TMA includes one or more small UZAs. In addition, one small 
UZA (Santa Barbara, CA) has been designated as a TMA. In either of 
these situations, the Governor cannot allocate ``Governor's 
Apportionment'' funds attributed to the small UZAs to other areas; that 
is, the Governor only has discretion to allocate Governor's 
Apportionment funds attributable to

[[Page 13878]]

areas that are outside of designated TMA planning boundaries.
    The list of small UZAs included within the planning boundaries of 
designated TMAs is provided in the table below.

------------------------------------------------------------------------
                                        Small urbanized area included in
            Designated TMA                   TMA planning boundary
------------------------------------------------------------------------
Albany, NY...........................  Saratoga Springs, NY.
Houston, TX..........................  Galveston, TX; Lake Jackson-
                                        Angleton, TX; Texas City, TX;
                                        The Woodlands, TX.
Jacksonville, FL.....................  St. Augustine, FL.
Orlando, FL..........................  Kissimmee, FL.
Palm Bay-Melbourne, FL...............  Titusville, FL.
Philadelphia, PA-NJ-DE-MD............  Pottstown, PA.
Pittsburgh, PA.......................  Monessen, PA; Weirton, WV-
                                        Steubenville, OH-PA (PA
                                        portion); Uniontown-
                                        Connellsville, PA.
Seattle, WA..........................  Bremerton, WA.
Washington, DC-VA-MD.................  Frederick, MD.
------------------------------------------------------------------------

    The MPO must notify the Associate Administrator for Program 
Management, Federal Transit Administration, 400 Seventh Street, SW., 
Washington, DC 20590, in writing, no later than July 1 of each year, to 
identify any small UZA within the planning boundaries of a TMA.
    g. Urbanized Area Formula Funds Used for Highway Purposes. Funds 
apportioned to a TMA are eligible for transfer to FHWA for highway 
projects. However, before funds can be transferred, the following 
conditions must be met: (1) Such use must be approved by the MPO in 
writing, after appropriate notice and opportunity for comment and 
appeal are provided to affected transit providers; (2) in the 
determination of the Secretary, such funds are not needed for 
investments required by the Americans with Disabilities Act of 1990 
(ADA); and (3) the MPO determines that local transit needs are being 
addressed.
    The MPO should notify the appropriate FTA Regional Administrator of 
its intent to use FTA funds for highway purposes, as prescribed in 
section V.D below. Urbanized Area Formula funds that are designated by 
the MPO for highway projects will be transferred to and administered by 
FHWA.
4. Period of Availability
    The Urbanized Area Formula Program funds apportioned in this notice 
remain available to be obligated by FTA to recipients until September 
30, 2010. Any of these apportioned funds that remain unobligated at the 
close of business on September 30, 2010, will revert to FTA for 
reapportionment under the Urbanized Area Formula Program.
5. Other Program or Apportionment Related Information and Highlights
    In each UZA with a population of 200,000 or more, the Governor in 
consultation with responsible local officials, and publicly owned 
operators of public transportation has designated one or more entities 
to be the Designated Recipient for Section 5307 funds apportioned to 
the UZA. The same entity(s) may or may not be the Designated Recipient 
for the Job Access and Reverse Commute (JARC) and New Freedom program 
funds apportioned to the UZA. In UZAs under 200,000 population, the 
State is the Designated Recipient for Section 5307 as well as JARC and 
New Freedom programs. The Designated Recipient for Section 5307 may 
authorize other entities to apply directly to FTA for Section 5307 
grants pursuant to a supplemental agreement. While the requirement that 
projects selected for funding be included in a locally developed 
coordinated public transit/human service transportation plan is not 
included in Section 5307 as it is in Sections 5310, 5316 (JARC) and 
5317 (New Freedom), FTA expects that in their role as public transit 
providers, recipients of Section 5307 funds will be participants in the 
local planning process for these programs.

D. Clean Fuels Grant Program (49.U.S.C. 5308)

    The Clean Fuels Grant Program supports the use of alternative fuels 
in air quality maintenance or nonattainment areas for ozone or carbon 
monoxide through capital grants to urbanized areas for clean fuel 
vehicles and facilities. Previously an unfunded Formula Program under 
TEA-21, the program is now a discretionary program. FTA published a 
Notice of Proposed Rulemaking for the discretionary program on October 
16, 2006, and is now in the process of reviewing comments and 
finalizing the rule. For more information about this program contact 
Kimberly Sledge, Office of Transit Programs, at (202) 366-2053.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$45,000,000 to the Clean Fuels Grant Program (49 U.S.C. 5308). SAFETEA-
LU earmarked $18,721,000 for specific Clean Fuel projects. The balance 
of $26,279,000 was transferred to the discretionary Bus Program.

                        Clean Fuels Grant Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................        $45,000,000
------------------------------------------------------------------------
Transfer to Bus and Bus Facility.....................       -$26,279,000
Funds Allocated to SAFETEA-LU Earmarks...............         18,721,000
------------------------------------------------------------------------

    Allocations to projects earmarked under the Clean Fuels program in 
SAFETEA-LU are displayed in Table 8.
2. Basis for Allocation of Funds.
    Section 3044(b) of SAFETEA-LU included 16 projects to be funded 
through the Clean Fuels program. Table 8 displays the amounts available 
in FY 2007 to the Clean Fuels projects designated in SAFETEA-LU. FY 
2006 carryover funds are shown in Table 9. No funds are available for 
competitive allocation in FY 2007.
3. Requirements
    Clean Fuels program funds may be made available to any grantee in a 
UZA that is designated as maintenance or nonattainment area for ozone 
or carbon monoxide as defined in the Clean Air Act. Eligible recipients 
include Section 5307 Designated Recipients as well as recipients in 
small UZAs. In the case of a small UZA, the State in which the area is 
located will act as the recipient.
    Eligible projects include the purchase or lease of clean fuel buses 
(including buses that employ a lightweight composite primary 
structure), the construction or lease of clean fuel buses or electrical 
recharging facilities and related equipment for such buses, and 
construction or improvement of public transportation facilities to 
accommodate clean fuel buses.
    Legislation will be necessary if a recipient wishes to use Clean 
Fuels funds earmarked in SAFETEA-LU for

[[Page 13879]]

eligible program activities outside the scope of a project description.
    Unless otherwise specified in law, grants made under the Clean 
Fuels program must meet all other eligibility requirements as outlined 
in Section 5308.
4. Period of Availability
    Funds designated for specific Clean Fuels Program projects remain 
available for obligation for three fiscal years, which includes the 
year of appropriation plus two additional fiscal years. The FY 2007 
funding for projects included in this notice remains available through 
September 30, 2009. Clean Fuels funds not obligated in an FTA grant for 
their original purpose at the end of the period of availability will 
generally be made available for other projects.

E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization

    This program provides capital assistance for the modernization of 
existing fixed guideway systems. Funds are allocated by a statutory 
formula to UZAs with fixed guideway systems that have been in operation 
for at least seven years. A ``fixed guideway'' refers to any transit 
service that uses exclusive or controlled rights-of-way or rails, 
entirely or in part. The term includes heavy rail, commuter rail, light 
rail, monorail, trolleybus, aerial tramway, inclined plane, cable car, 
automated guideway transit, ferryboats, that portion of motor bus 
service operated on exclusive or controlled rights-of-way, and high-
occupancy-vehicle (HOV) lanes. Eligible applicants are the public 
transit authorities in those urbanized areas to which the funds are 
allocated. For more information about Fixed Guideway Modernization 
contact Scott Faulk, Office of Transit Programs, at (202) 366-2053.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$1,448,000,000 to the Fixed Guideway Modernization Program. The total 
amount apportioned for the Fixed Guideway Modernization Program is 
$1,433,520,000, after the deduction for oversight, as shown in the 
table below.

                  Fixed Guideway Modernization Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................     $1,448,000,000
------------------------------------------------------------------------
Oversight Deduction..................................        -14,480,000
������������������������������������������������������
  Total Apportioned..................................      1,433,520,000
------------------------------------------------------------------------

    The FY 2007 Fixed Guideway Modernization Program apportionments to 
eligible areas are displayed in Table 10.
2. Basis for Formula Apportionment
    The formula for allocating the Fixed Guideway Modernization funds 
contains seven tiers. The apportionment of funding under the first four 
tiers is based on amounts specified in law and NTD data used to 
apportion funds in FY 1997. Funding under the last three tiers is 
apportioned based on the latest available data on route miles and 
revenue vehicle miles on segments at least seven years old, as reported 
to the NTD. Section 5337(f) of title 49, U.S.C. provides for the 
inclusion of Morgantown, West Virginia (population 55,997) as an 
eligible UZA for purposes of apportioning fixed guideway modernization 
funds. Also, pursuant to 49 U.S.C. 5336(b) FTA used 60 percent of the 
directional route miles attributable to the Alaska Railroad passenger 
operations system to calculate the apportionment for the Anchorage, 
Alaska UZA under the Section 5309 Fixed Guideway Modernization formula.
    FY 2007 Formula apportionments are based on data grantees provided 
to the NTD for the 2005 reporting year. Table 11 provides additional 
information and details on the formula. Dollar unit values for the 
formula factors used in the Fixed Guideway Modernization Program are 
displayed in Table 5. To replicate an area's apportionment, multiply 
the dollar unit value by the appropriate formula factor, i.e., route 
miles and revenue vehicle miles.
3. Program Requirements
    Fixed Guideway Modernization funds must be used for capital 
projects to maintain, modernize, or improve fixed guideway systems. 
Eligible UZAs (those with a population of 200,000 or more) with fixed 
guideway systems that are at least seven years old are entitled to 
receive Fixed Guideway Modernization funds. A threshold level of more 
than one mile of fixed guideway is required in order to receive Fixed 
Guideway Modernization funds. Therefore, UZAs reporting one mile or 
less of fixed guideway mileage under the NTD are not included. However, 
funds apportioned to an urbanized area may be used on any fixed 
guideway segment in the UZA. Program guidance for Fixed Guideway 
Modernization is presently found in FTA Circular C9300.1A, Capital 
Program: Grant Application Instructions, dated October 1, 1998. FTA is 
in the process of updating this circular to incorporate changes 
resulting from language in SAFETEA-LU.
4. Period of Availability
    The funds apportioned in this notice under the Fixed Guideway 
Modernization Program remain available to be obligated by FTA to 
recipients for three fiscal years following FY 2007. Any of these 
apportioned funds that remain unobligated at the close of business on 
September 30, 2010, will revert to FTA for reapportionment under the 
Fixed Guideway Modernization Program.

F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-Related 
Facilities

    This program provides capital assistance for new and replacement 
buses and related facilities. Funds are allocated on a discretionary 
basis. Eligible purposes are acquisition of buses for fleet and service 
expansion, bus maintenance and administrative facilities, transfer 
facilities, bus malls, transportation centers, intermodal terminals, 
park-and-ride stations, acquisition of replacement vehicles, bus 
rebuilds, bus preventive maintenance, passenger amenities such as 
passenger shelters and bus stop signs, accessory and miscellaneous 
equipment such as mobile radio units, supervisory vehicles, fare boxes, 
computers, and shop and garage equipment. Eligible applicants are State 
and local governmental authorities. Eligible subrecipients include 
other public agencies, private companies engaged in public 
transportation and private non-profit organizations. For more 
information about Bus and Bus-Related Facilities contact Maria Wright, 
Office of Transit Programs, at (202) 366-2053.
1. FY 2007 Funding Availability
    The Continuing Appropriations Resolution, 2007, provides 
$881,779,000 for the bus and bus facilities program. This amount 
includes $855,500,000 provided for the Bus Program and $26,279,000 
transferred from the Clean Fuels Program. The amount of funding for 
projects designated in Section 3044 of SAFETEA-LU for Bus and Bus-
Related Facilities in FY 2007 is $459,670,089. The balance remains 
unallocated, as shown in the following table.

                       Bus and Bus Facility Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................     $881,779,000 a
------------------------------------------------------------------------
Oversight Deduction..................................         -8,817,790
SAFETEA-LU Statutory Provisions Projects.............        459,670,089

[[Page 13880]]

 
Funds Available for Discretionary/Competitive                413,291,121
 Allocation..........................................
                                                      ------------------
  Total Funds to be Allocated........................        872,961,210
------------------------------------------------------------------------
a Includes $26,279,000 transferred from Clean Fuels Grant Program

    The FY 2007 Bus and Bus Facility Program allocations are displayed 
in Table 12.
2. Basis for Allocations
    Funds are provided annually under Section 5309 for discretionary 
allocation for bus and bus facilities projects. SAFETEA-LU listed 646 
earmarked projects to be funded each year through the Bus Program 
(Section 3044) and specified additional projects in Section 5309(m)(7). 
Table 12 displays the allocation of the FY 2007 Bus and Bus-Related 
Facilities funds by State and project for projects earmarked in 
SAFETEA-LU. The table includes a SAFETEA-LU project number for each 
project listed in Section 3044. No additional projects were earmarked 
in the Continuing Appropriations Resolution, 2007. In fact, Section 112 
of the Continuing Appropriations Resolution, 2007, (H.J. Res 20) 
specifically precluded using FY 2007 funds to award grants for projects 
designated Section 5309 bus funds in the statement of managers 
accompanying the FY 2006 Department of Transportation Appropriations 
Act (Pub. L. 109-115).
3. Requirements
    Section 125 and Section 113 of the FY 2005 and FY 2006 Department 
of Transportation Appropriations Acts, respectively, make projects 
identified in the statement of managers automatically eligible to 
receive the funds designated to the project ``notwithstanding any other 
provision of law.'' Similar language was first included as a general 
provision in Section 547 of the FY 2004 Department of Transportation 
Appropriations Acts. In addition, Section 3044 of SAFETEA-LU earmarked 
646 Bus and Bus Facilities projects in FY 2007. FTA will review 
Congressional intent on a case by case basis.
    FTA honors Congressional earmarks for the purpose designated, for 
purposes eligible under the program or under the expanded eligibility 
of a ``notwithstanding'' provision. If you want to apply to use funds 
designated under the Bus Program in any year for project activities 
outside the scope of the project designation included in report 
language, you must submit your request for reprogramming to the House 
and Senate Committees on Appropriations for resolution. FTA will not 
reprogram projects Congress designated in report language without 
direction from the Appropriations Committees.
    FTA will honor projects earmarked to receive Section 5309 bus funds 
in SAFETEA-LU. Legislation will be necessary to amend the earmark if 
you wish to use funds for project activities outside the scope of the 
project description.
    Grants made under the Bus and Bus-Related Facilities program must 
meet all other eligibility requirements as outlined in Section 5309 
unless otherwise specified in law.
    Program guidance for Bus and Bus-Related Facilities is found in FTA 
Circular C9300.1A, Capital Program: Grant Application Instructions. FTA 
is in the process of updating this circular to incorporate changes 
resulting from language in SAFETEA-LU.
4. Period of Availability
    The FY 2007 Bus and Bus-Related Facilities funds not obligated for 
their original purpose as of September 30, 2009, may be made available 
for other projects under 49 U.S.C. 5309. The unusual appropriations 
process in FY 2007 has not yet resulted in directions from Congress to 
FTA not to reallocate unobligated bus program funds for designations 
that lapsed at the end of FY 2006.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Bus and Bus-Related allocations 
in the amount of $870,471,637 remain available for obligation in FY 
2007. This includes $861,331,362 in fiscal years 2005 and 2006 
unobligated allocations, and $9,140,275 for fiscal years 2002-2004 
unobligated allocations that were extended by previous direction by the 
House and Senate appropriation committees. The unobligated amounts 
available as of September 30, 2006, are displayed in Table 13.
    In two Notices of Funding Availability (NOFA), published as 
separate parts of today's Federal Register, FTA is issuing procedures 
for grantees to apply competitively for discretionary funding for 
projects eligible under the Bus and Bus Facilities program. One NOFA 
invites applications from States and from Designated Recipients under 
the Urbanized Area Formula Program to fund bus and bus facility 
projects that address the following FTA priorities: Fleet replacement 
needs that cannot be met with formula funds, fleet expansion for 
significant service improvements, purchase of clean fuel vehicles, 
facility construction to support increased service or introduction of 
clean fuels, and intermodal terminal projects that include intercity 
bus providers, and Gulf Coast recovery. The other NOFA addresses the 
Department of Transportation Congestion Initiative and invites 
proposals from specific urbanized areas identified as the most 
congested in the nation.

G. Capital Investment Program (49 U.S.C. 5309)--New Starts

    The New Starts program provides funds for construction of new fixed 
guideway systems or extensions to existing fixed guideway systems. 
Eligible purposes are light rail