Clean Fuels Grant Program, 15049-15054 [E7-5879]
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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations
Distribution, or Use’’ (66 FR 28355 (May
22, 2001)). This action merely approves
changes to state law as meeting Federal
requirements and imposes no additional
requirements beyond those imposed by
state law. Accordingly, the
Administrator certifies that this rule
will not have a significant economic
impact on a substantial number of small
entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this
rule approves changes to state law and
does not impose any additional
enforceable duty beyond that required
by state law, it does not contain any
unfunded mandate or significantly or
uniquely affect small governments, as
described in the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4).
This rule also does not have a
substantial direct effect on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes,
as specified by Executive Order 13175
(59 FR 22951, November 9, 2000), nor
will it have substantial direct effects on
the States, on the relationship between
the national government and the States,
or on the distribution of power and
responsibilities among the various
levels of government, as specified in
Executive Order 13132 (64 FR 43255,
August 10, 1999), because it merely
approves changes to state law
implementing a Federal requirement,
and does not alter the relationship or
the distribution of power and
responsibilities established in the Clean
Air Act. This rule also is not subject to
Executive Order 13045 ‘‘Protection of
Children from Environmental Health
and Safety Risks’’ (62 FR 19885, April
23, 1997), because it finalizes approval
of a state rule implementing a Federal
Standard.
In reviewing SIP submissions, EPA’s
role is to approve state choices,
provided that they meet the criteria of
the Clean Air Act. In this context, in the
absence of a prior existing requirement
for the State to use voluntary consensus
standards (VCS), EPA has no authority
to disapprove a SIP submission for
failure to use VCS. It would thus be
inconsistent with applicable law for
EPA, when it reviews a SIP submission,
to use VCS in place of a SIP submission
that otherwise satisfies the provisions of
the Clean Air Act. Thus, the
requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) do not apply. This rule does
not impose an information collection
burden under the provisions of the
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Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
The Congressional Review Act, 5
U.S.C. section 801 et seq., as added by
the Small Business Regulatory
Enforcement Fairness Act of 1996,
generally provides that before a rule
may take effect, the agency
promulgating the rule must submit a
rule report, which includes a copy of
the rule, to each House of the Congress
and to the Comptroller General of the
United States. EPA will submit a report
containing this rule and other required
information to the U.S. Senate, the U.S.
House of Representatives, and the
Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a (major rule( as
defined by 5 U.S.C. section 804(2).
Under section 307(b)(1) of the Clean
Air Act, petitions for judicial review of
this action must be filed in the United
States Court of Appeals for the
appropriate circuit by May 29, 2007.
Filing a petition for reconsideration by
the Administrator of this final rule does
not affect the finality of this rule for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action. This action may not
be challenged later in proceedings to
enforce its requirements. (See section
307(b)(2).)
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Nitrogen
oxides, Ozone, Reporting and
recordkeeping requirements, Volatile
organic compounds.
Dated: March 20, 2007.
Wayne Nastri,
Regional Administrator, Region 9.
PART 52—[AMENDED]
1. The authority citation for part 52
continues to read as follows:
I
Authority: 42 U.S.C. 7401 et seq.
Subpart D—Arizona
2. Section 52.120 is amended by
adding paragraphs (c)(133) and (c)(134)
to read as follows:
*
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Identification of plan.
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[FR Doc. E7–5558 Filed 3–29–07; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 624
[Docket No. FTA–2006–24708]
RIN 2132–AA91
Federal Transit Administration
(FTA), DOT.
ACTION: Final rule.
AGENCY:
Part 52, chapter I, title 40 of the Code
of Federal Regulations are amended as
follows:
§ 52.120
(c) * * *
(133) The following statute and plan
were submitted on December 23, 2005
by the Governor’s designee.
(i) Incorporation by reference.
(A) Arizona Revised Statutes.
(1) Section 49–542 as amended in
section 1 of the Arizona House Bill
2357, 47th Legislature, 1st Regular
Session (2005) and approved by the
Governor on April 13, 2005.
(ii) Additional material.
(A) Arizona Department of
Environmental Quality.
(1) Final Arizona State
Implementation Plan Revision, Basic
and Enhanced Vehicle Emissions
Inspection/Maintenance Programs
(December 2005), adopted by the
Arizona Department of Environmental
Quality on December 23, 2005,
excluding appendices.
(134) The following plan was
submitted on October 3, 2006 by the
Governor’s designee.
(i) Incorporation by reference.
(A) Arizona Department of
Environmental Quality.
(1) September 2006 Supplement to
Final Arizona State Implementation
Plan Revision, Basic and Enhanced
Vehicle Emissions Inspection/
Maintenance Programs, December 2005,
adopted by the Arizona Department of
Environmental Quality on October 3,
2006, excluding appendices.
Clean Fuels Grant Program
I
I
15049
SUMMARY: On June 9, 1998, the
Transportation Equity Act for the 21st
Century (TEA–21) was enacted
requiring the Federal Transit
Administration (FTA) to establish the
Clean Fuels Formula Grant Program (the
program). The program was developed
to assist non-attainment and
maintenance areas in achieving or
maintaining the National Ambient Air
Quality Standards for ozone and carbon
monoxide (CO). Additionally, the
program supports emerging clean fuel
and advanced propulsion technologies
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for transit buses and markets for those
technologies. Although the program was
authorized as a formula grant program
from its inception, Congress did not
fund the program. The Safe,
Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for
Users (SAFETEA–LU) changed the grant
program from a formula-based to a
discretionary grant program. The
program, however, retains its initial
purpose. FTA is publishing this final
rule to revise the existing regulations to
reflect the amendments made by
SAFETEA–LU.
DATES: This rule is effective April 30,
2007.
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:
of this rulemaking is to revise 49 CFR
Part 624 to reflect the amendments
made by SAFETEA–LU establishing a
discretionary program and ensuring
procedures are in place when funding is
provided for the program. This final rule
also addresses criteria for the allocation
of discretionary program funds, issues
raised in the NPRM and the comments
made in response to the NPRM.
II. Discussion of Comments
FTA received a total of two comments
to this rulemaking. We discuss the
comments received and explain any
changes made to the regulations in the
following paragraphs. FTA considered
all comments filed. Each commenter
expressed support for the rulemaking
while offering recommendations to
improve this statutory program. A
written copy of each comment is
available at the DOT Docket Manager’s
Web site: https://www.dms.dot.gov.
1. American Public Transportation
Association (APTA) indicates that it
agrees with FTA’s approach to flexible
eligibility and selection criteria for
implementation of the regulation. APTA
Availability of the Final Rule
suggested that FTA publish proposed
You may download this rule from the annual criteria in conjunction with the
Department’s Docket Management
annual ‘‘apportionment and allowances
System (https://dms.dot.gov) by entering notice,’’ which includes FTA
docket number 24708 in the search field programmatic changes. APTA believed
that such a procedure would allow
or from the Government Printing
public comment on the criteria prior to
Office’s Federal Register Main Page at
the Federal Register Notice of Funding
https://www.gpoaccess.gov/fr/
Availability, thus permitting the latter
index.html. Users may also download
announcement to be limited to
an electronic copy of this document
solicitation of grant applications based
using a modem and suitable
communications software from the GPO on already publicly vetted criteria.
2. Metro Regional Transit Authority of
Electronic Bulletin Board Service at
Akron, Ohio (Metro) expresses support
(202) 512–1661.
for the majority of the proposed changes
I. Background
to the Clean Fuels Grant Program as an
The Clean Fuels Formula Grant
improvement to the overall initiative.
Program is a transit grant program
Metro recommends that the total project
established pursuant to Section 3008 of
cost should be an eligible federal
the Transportation Equity Act for the
expense for those projects that have an
21st Century (TEA–21) as amended,
evaluation and dissemination
Public Law 105–178, and codified at 49
component, in order to encourage
U.S.C. 5308. This legislation established additional research and development of
the basic parameters of the program.
alternative fuels. Metro recommends
Section 3010 of SAFTEA–LU, Public
that FTA only fund truly alternative
Law 109–59, (2005) changed the grant
energy sources such as hydrogen fuel
program from a formula-based to a
cells stating that other projects will
discretionary grant program.
continue dependence on fossil fuel and
In SAFETEA–LU, Congress earmarked foreign oil.
Metro believes that ‘‘clean diesel
approximately $18 million in FY 2006
graduating to approximately $22 million buses’’ are not an appropriate
expenditure for this program and that
in FY 2009 for specific projects.
these buses should be purchased with
However, during the FY 2006 and FY
Congestion Mitigation Air Quality or
2007 appropriations process, Congress
section 5307 funds. The Clean Fuels
transferred the remaining clean fuels
program should focus its limited
program funds not earmarked pursuant
resources on projects that can be
to SAFETEA–LU to the Bus and Bus
replicated or advance the technology for
Facilities Program. Thus, there are no
buses. Another recommendation by
discretionary funds available for the
Metro is that FTA consider the reporting
Clean Fuels Program to date. The focus
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evaluation proposal as part of the grant
process, including a pure science
component for each funded project.
III. Section by Section Analysis
In this section, FTA provides a
section by section analysis and
comments in response where
applicable.
A. Eligible Recipients
As noted in the NPRM, SAFETEA–LU
amended the term ‘‘recipient’’ to now
include smaller urbanized areas with
populations of less than 200,000.
Accordingly, we are amending section
624.1 to define eligible applicants as (1)
designated recipients, as 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’’ is an entity
designated to receive Federal urbanized
formula funds under 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 carbon
monoxide (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).
B. Eligible Activity
A commenter indicated that
additional criteria not found in the
statute should also be considered. FTA
is not permitted to expand the selection
criteria beyond that found in the statute.
For similar reasons, FTA may not
restrict vehicles that use clean diesel as
an eligible activity as recommended by
the commenter. Further, a commenter
suggested that an experimental project
should receive Federal funds at the
100% level. FTA has no statutory
authority to support 100% funding of
total project costs of eligible activities.
The final rule contains the funding
share for eligible projects that complies
with the requirements of 49 U.S.C. 5308
and the Clean Air Act.
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FTA is amending section 624.3 in
paragraph (a) and removes paragraphs
(c)(4) and (c)(5) to exclude repowering
and retrofitting of pre-1993 buses. Both
activities were specifically authorized as
eligible projects under TEA–21;
however, SAFETEA–LU repealed those
provisions. Accordingly, we have
determined that such activities cannot
be authorized under this program. In
addition, we 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 amendments applicable
to eligible projects.
a. We are amending 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 cannot 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. FTA
has 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 noted in the NPRM 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
provided for administrative discretion
to determine costs attributable to such
systems and related-equipment. This
provision was not included in the FY
2007 appropriations legislation, and
therefore not authorized.
Paragraph (c)(5) of section 624.3 is
amended to reflect the statutory
mandate under section 5308(c) that not
more than 25 percent of the funds
available to carry out the clean fuels
program each fiscal year may be made
available to fund clean diesel buses. 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
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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 (January 18, 2001).).
Accordingly, FTA interprets ‘‘clean
diesel’’ to mean diesel engines certified
to meet EPA’s heavy-duty engine
emissions standards for model-years
2007 and later.
The final rule amends paragraph
(c)(6) of 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.
C. Application Process
Since the program is now a
discretionary grant program, the preapplication included in Appendix A no
longer applies. Accordingly, we are
removing Appendix A from Part 624
and revising section 624.5 to reflect that
applications will be requested in a
Federal Register notice each fiscal year
that discretionary funds are provided by
Congress for the program. FTA
considered a comment to change the
procedures but determined that since
technological innovations continue to
evolve, we believe the criteria for
selecting eligible projects should be
flexible. Accordingly, we are revising
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
provided by Congress for the program.
D. Certifications
We retain the current certification
process 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
will 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
to apply for the Clean Fuels Grant
Program would indicate compliance
with this certification when submitting
the annual certifications and assurances.
Additionally, grantees purchasing or
leasing ‘‘clean diesel’’ buses must certify
that the buses would be operated using
only ultra-low-sulfur diesel fuel.
E. Statutory Cross-Cutting Requirements
Since the program is now a
discretionary grant program, we are
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amending section 624.9 by removing the
grant formula because it no longer
applies. Section 5308, as amended by
SAFETEA–LU, requires that a grant
under this program be subject to the
applicable requirements of 49 U.S.C.
5307. Accordingly, we are amending
section 624.9 by inserting the applicable
statutory requirements from 49 U.S.C.
5307. Many of these requirements are
also contained in FTA Circular 9030.1C,
which is available on the FTA website
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. This Circular and the
MA are also available on the FTA Web
site at (https://www.fta.dot.gov).
F. Reporting
With respect to the comment on
reporting as part of the grant process,
FTA is interested in program level
evaluation. We will use these reporting
components to analyze national
programmatic effects. However, we
encourage local areas to use criteria that
best suits their local needs.
As FTA supports 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, FTA retains the reporting
requirements in section 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 are providing
administrative relief by extending the
reporting requirements in section 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 encourage transit
agencies acquiring other types of
alternative fuel buses (e.g., compressed
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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.
FTA will be requesting from the
Office of Management and Budget
(OMB) under the Paperwork Reduction
Act 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.
Data collected will be used to provide
more accurate information to transit
agencies for future clean fuel and
advanced propulsion vehicle
acquisitions.
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IV. Regulatory Analyses and Notices
Executive Order 12866
Under Executive Order 12866, the
Department of Transportation (DOT)
must examine whether this 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 rule amends an existing grant
program and is not expected to impose
any new compliance costs. Specifically,
we are 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
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designating this as a significant rule
under E.O. 12866 because it involves
grant application procedures and will
not cost more than $120 million
annually. Additionally, we provide
administrative relief in the reporting
criteria by decreasing the reporting
period from quarterly to semiannually.
For these reasons, we have determined
that this rule is a no significant
regulatory action under section 3(f) of
E.O. 12866. Accordingly, it has not been
reviewed by OMB.
Executive Order 13132
This rule has been analyzed in
accordance with the principles and
criteria contained in E.O. 13132
(Federalism). This 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
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 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
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 rule
on small entities and determined that it
will not have a significant effect on a
substantial number of small entities.
This rule imposes no new costs because
it merely modifies the application
procedures for an existing grant
program.
Paperwork Reduction Act
This rule includes information
collection requirements subject to the
Paperwork Reduction Act. OMB
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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.
Since Congress may provide funding
in future fiscal years, we will submit a
new information collection request to
OMB. The affected public under this
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, the rule decreases
reporting because we modify the
reporting period from quarterly to
semiannually.
Unfunded Mandates Reform Act of 1995
This rule does not propose unfunded
mandates under the Unfunded
Mandates Reform Act of 1995. The rule
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),
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 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,
Public transportation, Reporting and
record keeping requirements.
I For the reasons set forth in the
preamble, FTA amends 49 CFR part 624
as follows:
PART 624—CLEAN FUELS GRANT
PROGRAM
1. The authority citation for part 624
is revised to read as follows:
I
Authority: 49 U.S.C. 5308; 49 U.S.C.
5334(a); 49 CFR 1.51.
2. The heading to part 624 is revised
to read as set forth above.
I 3. Revise § 624.1 to read as follows:
I
§ 624.1
Eligible applicant.
(a) An eligible applicant is:
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(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.
I 4. Amend § 624.3 by revising
paragraph (a) and (c) (3) through (6) to
read as follows:
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§ 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.
*
*
*
*
*
(c) * * *
(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 the Federal share for eligible
activities to be less than 90 percent.
(ii) An administrative determination
per this subsection will be published in
accordance with § 624.5(a).
(5) Funding for clean diesel buses
shall be limited to not more than 25
percent of the amount made available
each fiscal year to carry out the
program.
(6) Any amount made available for
this section shall remain available to an
eligible activity for two years after the
fiscal year for which the amount is
provided. Any amount that remains
unobligated at the end of the three-yearperiod shall be added to the amount
made available to carry out the program
in the following fiscal year.
I 5. Revise § 624.5 to read as follows:
§ 624.5
Application process.
(a) FTA shall publish a Notice of
Funding Availability in the Federal
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Register each fiscal year that funding is
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 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 transportationrelated 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
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.
I 6. Revise § 624.9 to read as follows:
§ 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,
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. An
FTA grantee shall:
(1) Maintain control over federally
funded property;
(i) Ensure that it is used in transit
service; and
(ii) 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
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15053
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.
I 7. Amend § 624.11 by revising
paragraph (a) introductory text and
paragraph (c) to read as follows:
§ 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
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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations
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]
I
8. Remove Appendix A to Part 624.
Issued in Washington, DC, this 26th day of
March 2007.
James S. Simpson,
Administrator.
[FR Doc. E7–5879 Filed 3–29–07; 8:45 am]
BILLING CODE 4910–57–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 070213032–7032–01; I.D.
032607F]
Fisheries of the Exclusive Economic
Zone Off Alaska; Pollock in Statistical
Area 620 of the Gulf of Alaska
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
AGENCY:
cprice-sewell on PROD1PC66 with RULES
SUMMARY: NMFS is prohibiting directed
fishing for pollock in Statistical Area
620 of the Gulf of Alaska (GOA). This
action is necessary to prevent exceeding
the B season allowance of the 2007 total
allowable catch (TAC) of pollock for
Statistical Area 620 of the GOA.
DATES: Effective 1200 hrs, Alaska local
time (A.l.t.), March 27, 2007, through
1200 hrs, A.l.t., August 25, 2007.
VerDate Aug<31>2005
15:49 Mar 29, 2007
Jkt 211001
FOR FURTHER INFORMATION CONTACT:
Jennifer Hogan, 907–586–7228.
SUPPLEMENTARY INFORMATION: NMFS
manages the groundfish fishery in the
GOA exclusive economic zone
according to the Fishery Management
Plan for Groundfish of the Gulf of
Alaska (FMP) prepared by the North
Pacific Fishery Management Council
under authority of the MagnusonStevens Fishery Conservation and
Management Act. Regulations governing
fishing by U.S. vessels in accordance
with the FMP appear at subpart H of 50
CFR part 600 and 50 CFR part 679.
The B season allowance of the 2007
TAC of pollock in Statistical Area 620
of the GOA is 8,924 metric tons (mt) as
established by the 2007 and 2008
harvest specifications for groundfish of
the GOA (72 FR 9676, March 5, 2007).
In accordance with § 679.20(a)(5)(iv)(B)
the Administrator, Alaska Region,
NMFS (Regional Administrator), hereby
increases the B season pollock
allowance by 1,785 mt, the remaining
amount of the A season allowance for
pollock in Statistical Area 620.
Therefore, the revised B season
allowance of the pollock TAC in
Statistical Area 620 is therefore 10,709
mt (8,924 mt plus 1,785 mt).
In accordance with § 679.20(d)(1)(i),
the Regional Administrator has
determined that the B season allowance
of the 2007 TAC of pollock in Statistical
Area 620 of the GOA will soon be
reached. Therefore, the Regional
Administrator is establishing a directed
fishing allowance of 10,659 mt, and is
setting aside the remaining 50 mt as
bycatch to support other anticipated
groundfish fisheries. In accordance with
§ 679.20(d)(1)(iii), the Regional
Administrator finds that this directed
fishing allowance has been reached.
Consequently, NMFS is prohibiting
directed fishing for pollock in Statistical
Area 620 of the GOA.
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After the effective date of this closure
the maximum retainable amounts at
§ 679.20(e) and (f) apply at any time
during a trip.
Classification
This action responds to the best
available information recently obtained
from the fishery. The Assistant
Administrator for Fisheries, NOAA
(AA), finds good cause to waive the
requirement to provide prior notice and
opportunity for public comment
pursuant to the authority set forth at 5
U.S.C. 553(b)(B) as such requirement is
impracticable and contrary to the public
interest. This requirement is
impracticable and contrary to the public
interest as it would prevent NMFS from
responding to the most recent fisheries
data in a timely fashion and would
delay the closure of pollock in
Statistical Area 620 of the GOA. NMFS
was unable to publish a notice
providing time for public comment
because the most recent, relevant data
only became available as of March 26,
2007.
The AA also finds good cause to
waive the 30 day delay in the effective
date of this action under 5 U.S.C.
553(d)(3). This finding is based upon
the reasons provided above for waiver of
prior notice and opportunity for public
comment.
This action is required by § 679.20
and is exempt from review under
Executive Order 12866.
Authority: 16 U.S.C. 1801 et seq.
Dated: March 26, 2007.
James P. Burgess,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 07–1579 Filed 3–27–07; 3:07 pm]
BILLING CODE 3510–22–S
E:\FR\FM\30MRR1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 61 (Friday, March 30, 2007)]
[Rules and Regulations]
[Pages 15049-15054]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5879]
=======================================================================
-----------------------------------------------------------------------
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: On June 9, 1998, the Transportation Equity Act for the 21st
Century (TEA-21) was enacted requiring the Federal Transit
Administration (FTA) to establish the Clean Fuels Formula Grant Program
(the program). The program was developed to assist non-attainment and
maintenance areas in achieving or maintaining the National Ambient Air
Quality Standards for ozone and carbon monoxide (CO). Additionally, the
program supports emerging clean fuel and advanced propulsion
technologies
[[Page 15050]]
for transit buses and markets for those technologies. Although the
program was authorized as a formula grant program from its inception,
Congress did not fund the program. The Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU)
changed the grant program from a formula-based to a discretionary grant
program. The program, however, retains its initial purpose. FTA is
publishing this final rule to revise the existing regulations to
reflect the amendments made by SAFETEA-LU.
DATES: This rule is effective April 30, 2007.
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:
Availability of the Final Rule
You may download this rule from the Department's Docket Management
System (https://dms.dot.gov) by entering docket number 24708 in the
search field or from the Government Printing Office's Federal Register
Main Page at https://www.gpoaccess.gov/fr/. Users may also
download an electronic copy of this document using a modem and suitable
communications software from the GPO Electronic Bulletin Board Service
at (202) 512-1661.
I. Background
The Clean Fuels Formula Grant Program is a transit grant program
established pursuant to Section 3008 of the Transportation Equity Act
for the 21st Century (TEA-21) as amended, Public Law 105-178, and
codified at 49 U.S.C. 5308. This legislation established the basic
parameters of the program. Section 3010 of SAFTEA-LU, Public Law 109-
59, (2005) changed the grant program from a formula-based to a
discretionary grant program.
In SAFETEA-LU, Congress earmarked approximately $18 million in FY
2006 graduating to approximately $22 million in FY 2009 for specific
projects. However, during the FY 2006 and FY 2007 appropriations
process, Congress transferred the remaining clean fuels program funds
not earmarked pursuant to SAFETEA-LU to the Bus and Bus Facilities
Program. Thus, there are no discretionary funds available for the Clean
Fuels Program to date. The focus of this rulemaking is to revise 49 CFR
Part 624 to reflect the amendments made by SAFETEA-LU establishing a
discretionary program and ensuring procedures are in place when funding
is provided for the program. This final rule also addresses criteria
for the allocation of discretionary program funds, issues raised in the
NPRM and the comments made in response to the NPRM.
II. Discussion of Comments
FTA received a total of two comments to this rulemaking. We discuss
the comments received and explain any changes made to the regulations
in the following paragraphs. FTA considered all comments filed. Each
commenter expressed support for the rulemaking while offering
recommendations to improve this statutory program. A written copy of
each comment is available at the DOT Docket Manager's Web site: https://
www.dms.dot.gov.
1. American Public Transportation Association (APTA) indicates that
it agrees with FTA's approach to flexible eligibility and selection
criteria for implementation of the regulation. APTA suggested that FTA
publish proposed annual criteria in conjunction with the annual
``apportionment and allowances notice,'' which includes FTA
programmatic changes. APTA believed that such a procedure would allow
public comment on the criteria prior to the Federal Register Notice of
Funding Availability, thus permitting the latter announcement to be
limited to solicitation of grant applications based on already publicly
vetted criteria.
2. Metro Regional Transit Authority of Akron, Ohio (Metro)
expresses support for the majority of the proposed changes to the Clean
Fuels Grant Program as an improvement to the overall initiative. Metro
recommends that the total project cost should be an eligible federal
expense for those projects that have an evaluation and dissemination
component, in order to encourage additional research and development of
alternative fuels. Metro recommends that FTA only fund truly
alternative energy sources such as hydrogen fuel cells stating that
other projects will continue dependence on fossil fuel and foreign oil.
Metro believes that ``clean diesel buses'' are not an appropriate
expenditure for this program and that these buses should be purchased
with Congestion Mitigation Air Quality or section 5307 funds. The Clean
Fuels program should focus its limited resources on projects that can
be replicated or advance the technology for buses. Another
recommendation by Metro is that FTA consider the reporting evaluation
proposal as part of the grant process, including a pure science
component for each funded project.
III. Section by Section Analysis
In this section, FTA provides a section by section analysis and
comments in response where applicable.
A. Eligible Recipients
As noted in the NPRM, SAFETEA-LU amended the term ``recipient'' to
now include smaller urbanized areas with populations of less than
200,000. Accordingly, we are amending section 624.1 to define eligible
applicants as (1) designated recipients, as 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'' is an entity designated to receive
Federal urbanized formula funds under 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 carbon monoxide (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).
B. Eligible Activity
A commenter indicated that additional criteria not found in the
statute should also be considered. FTA is not permitted to expand the
selection criteria beyond that found in the statute. For similar
reasons, FTA may not restrict vehicles that use clean diesel as an
eligible activity as recommended by the commenter. Further, a commenter
suggested that an experimental project should receive Federal funds at
the 100% level. FTA has no statutory authority to support 100% funding
of total project costs of eligible activities. The final rule contains
the funding share for eligible projects that complies with the
requirements of 49 U.S.C. 5308 and the Clean Air Act.
[[Page 15051]]
FTA is amending section 624.3 in paragraph (a) and removes
paragraphs (c)(4) and (c)(5) to exclude repowering and retrofitting of
pre-1993 buses. Both activities were specifically authorized as
eligible projects under TEA-21; however, SAFETEA-LU repealed those
provisions. Accordingly, we have determined that such activities cannot
be authorized under this program. In addition, we 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 amendments
applicable to eligible projects.
a. We are amending 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
cannot 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. FTA
has 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 noted in the NPRM 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 provided for
administrative discretion to determine costs attributable to such
systems and related-equipment. This provision was not included in the
FY 2007 appropriations legislation, and therefore not authorized.
Paragraph (c)(5) of section 624.3 is amended to reflect the
statutory mandate under section 5308(c) that not more than 25 percent
of the funds available to carry out the clean fuels program each fiscal
year may be made available to fund clean diesel buses. 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 (January 18,
2001).). Accordingly, FTA interprets ``clean diesel'' to mean diesel
engines certified to meet EPA's heavy-duty engine emissions standards
for model-years 2007 and later.
The final rule amends paragraph (c)(6) of 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.
C. Application Process
Since the program is now a discretionary grant program, the pre-
application included in Appendix A no longer applies. Accordingly, we
are removing Appendix A from Part 624 and revising section 624.5 to
reflect that applications will be requested in a Federal Register
notice each fiscal year that discretionary funds are provided by
Congress for the program. FTA considered a comment to change the
procedures but determined that since technological innovations continue
to evolve, we believe the criteria for selecting eligible projects
should be flexible. Accordingly, we are revising 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 provided by Congress for the program.
D. Certifications
We retain the current certification process 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 will 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 to apply for the Clean Fuels Grant Program would indicate
compliance with this certification when submitting the annual
certifications and assurances. Additionally, grantees purchasing or
leasing ``clean diesel'' buses must certify that the buses would be
operated using only ultra-low-sulfur diesel fuel.
E. Statutory Cross-Cutting Requirements
Since the program is now a discretionary grant program, we are
amending section 624.9 by removing the grant formula because it no
longer applies. Section 5308, as amended by SAFETEA-LU, requires that a
grant under this program be subject to the applicable requirements of
49 U.S.C. 5307. Accordingly, we are amending section 624.9 by inserting
the applicable statutory requirements from 49 U.S.C. 5307. Many of
these requirements are also contained in FTA Circular 9030.1C, which is
available on the FTA website 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. This Circular
and the MA are also available on the FTA Web site at (https://
www.fta.dot.gov).
F. Reporting
With respect to the comment on reporting as part of the grant
process, FTA is interested in program level evaluation. We will use
these reporting components to analyze national programmatic effects.
However, we encourage local areas to use criteria that best suits their
local needs.
As FTA supports 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, FTA retains the
reporting requirements in section 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 are providing administrative
relief by extending the reporting requirements in section 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 encourage transit agencies acquiring other types of
alternative fuel buses (e.g., compressed
[[Page 15052]]
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.
FTA will be requesting from the Office of Management and Budget
(OMB) under the Paperwork Reduction Act 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. Data collected will be used to provide
more accurate information to transit agencies for future clean fuel and
advanced propulsion vehicle acquisitions.
IV. Regulatory Analyses and Notices
Executive Order 12866
Under Executive Order 12866, the Department of Transportation (DOT)
must examine whether this 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 rule amends an existing grant program and is not expected to
impose any new compliance costs. Specifically, we are 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 as a significant rule under E.O. 12866 because
it involves grant application procedures and will not cost more than
$120 million annually. Additionally, we provide administrative relief
in the reporting criteria by decreasing the reporting period from
quarterly to semiannually. For these reasons, we have determined that
this rule is a no significant regulatory action under section 3(f) of
E.O. 12866. Accordingly, it has not been reviewed by OMB.
Executive Order 13132
This rule has been analyzed in accordance with the principles and
criteria contained in E.O. 13132 (Federalism). This 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 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 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 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 rule on small entities and
determined that it will not have a significant effect on a substantial
number of small entities. This rule imposes no new costs because it
merely modifies the application procedures for an existing grant
program.
Paperwork Reduction Act
This 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.
Since Congress may provide funding in future fiscal years, we will
submit a new information collection request to OMB. The affected public
under this 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, the
rule decreases reporting because we modify the reporting period from
quarterly to semiannually.
Unfunded Mandates Reform Act of 1995
This rule does not propose unfunded mandates under the Unfunded
Mandates Reform Act of 1995. The rule 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), 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 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, Public transportation, Reporting
and record keeping requirements.
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For the reasons set forth in the preamble, FTA amends 49 CFR part 624
as follows:
PART 624--CLEAN FUELS GRANT PROGRAM
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1. The authority citation for part 624 is revised to read as follows:
Authority: 49 U.S.C. 5308; 49 U.S.C. 5334(a); 49 CFR 1.51.
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2. The heading to part 624 is revised to read as set forth above.
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3. Revise Sec. 624.1 to read as follows:
Sec. 624.1 Eligible applicant.
(a) An eligible applicant is:
[[Page 15053]]
(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.
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4. Amend Sec. 624.3 by revising paragraph (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.
* * * * *
(c) * * *
(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 the 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 each fiscal year to carry
out the program.
(6) Any amount made available for this section shall remain
available to an eligible activity for two years after the fiscal year
for which the amount is provided. Any amount that remains unobligated
at the end of the three-year-period shall be added to the amount made
available to carry out the program in the following fiscal year.
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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 funding is 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 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 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.
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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, 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. An FTA grantee shall:
(1) Maintain control over federally funded property;
(i) Ensure that it is used in transit service; and
(ii) 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.
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7. Amend Sec. 624.11 by revising paragraph (a) introductory text and
paragraph (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
[[Page 15054]]
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]
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8. Remove Appendix A to Part 624.
Issued in Washington, DC, this 26th day of March 2007.
James S. Simpson,
Administrator.
[FR Doc. E7-5879 Filed 3-29-07; 8:45 am]
BILLING CODE 4910-57-P
