FTA Fiscal Year 2008 Apportionments and Allocations and Program Information, 4956-5077 [08-214]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 73, Number 18 (Monday, January 28, 2008)]
[Notices]
[Pages 4956-5077]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-214]



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Part II





Department of Transportation





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Federal Transit Administration



 FTA Fiscal Year 2008 Apportionments and Allocations and Program 
Information; Notice

Federal Register / Vol. 73, No. 18 / Monday, January 28, 2008 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2008 Apportionments and Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: Division K of the ``Consolidated Appropriations Act, 2008'' 
(Pub. L. 110-161), signed into law by President Bush on December 26, 
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, 2008. This notice provides information on the 
FY 2008 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 certain discretionary 
programs unobligated funding from previous years that will be available 
in FY 2008.

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 2008 Funding for FTA Programs
    A. Fiscal Year 2008 Funding Based on Consolidated Appropriations 
Act, 2008 and Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (SAFETEA-LU)
    B. Program Funds Set-Aside for Oversight
III. FY 2008 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. Changes in Match for Biodiesel Vehicles and Hybrid Retrofits
    F. National Transit Database (NTD) Strike Policy
IV. FTA Programs
    A. Metropolitan Planning Program (49 U.S.C. 5303)
    B. Statewide Planning Program (49 U.S.C. 5304)
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Clean Fuels Grant 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 Factors (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 2008 Grants Requirements
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FTA FY 2008 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 2008 APPROPRIATIONS AND APPORTIONMENTS FOR GRANT 
PROGRAMS
    2. FTA FY 2008 SECTION 5303 METROPOLITAN TRANSPORTATION PLANNING 
PROGRAM AND SECTION 5304 STATEWIDE TRANSPORTATION PLANNING PROGRAM 
APPORTIONMENTS
    3. FTA FY 2008 SECTION 5307 AND SECTION 5340 URBANIZED AREA 
APPORTIONMENTS
    4. FTA FY 2008 SECTION 5307 APPORTIONMENT FORMULA
    5. FTA FY 2008 FORMULA PROGRAMS APPORTIONMENTS DATA UNIT VALUES
    6. FTA FY 2008 SMALL TRANSIT INTENSIVE CITIES PERFORMANCE DATA 
AND APPORTIONMENTS
    7. FTA FY 2008 SECTION 5308 CLEAN FUELS PROGRAM ALLOCATIONS
    8. FTA PRIOR YEAR UNOBLIGATED SECTION 5308 CLEAN FUELS 
ALLOCATIONS
    9. FTA FY 2008 SECTION 5309 FIXED GUIDEWAY MODERNIZATION 
APPORTIONMENTS
    10. FTA FY 2008 FIXED GUIDEWAY MODERNIZATION PROGRAM 
APPORTIONMENT FORMULA
    11. FTA FY 2008 SECTION 5309 BUS AND BUS-RELATED ALLOCATIONS
    12. FTA PRIOR YEAR UNOBLIGATED SECTION 5309 BUS AND BUS-RELATED 
FACILITIES ALLOCATIONS AS OF SEPTEMBER 30, 2007
    13. FTA FY 2008 SECTION 5309 NEW STARTS ALLOCATIONS
    14. FTA PRIOR YEAR UNOBLIGATED SECTION 5309 NEW STARTS 
ALLOCATIONS
    15. FTA FY 2008 SPECIAL NEEDS FOR ELDERLY INDIVIDUALS AND 
INDIVIDUALS WITH DISABILITIES APPORTIONMENTS
    16. FTA FY 2008 SECTION 5311 AND SECTION 5340 NONURBANIZED 
APPORTIONMENTS, AND SECTION 5311(b)(3) RURAL TRANSIT ASSISTANCE 
PROGRAM (RTAP) APPORTIONMENTS
    17. FTA FY 2008 NATIONAL RESEARCH PROGRAM ALLOCATIONS
    18. FTA FY 2008 SECTION 5316 JOB ACCESS AND REVERSE COMMUTE 
(JARC) APPORTIONMENTS
    19. FTA PRIOR YEAR UNOBLIGATED JOB ACCESS AND REVERSE COMMUTE 
ALLOCATIONS
    20. FTA FY 2008 SECTION 5317 NEW FREEDOM APPORTIONMENTS
    21. FTA PRIOR YEAR UNOBLIGATED SECTION 5339 ALTERNATIVE ANALYSIS 
ALLOCATIONS
Appendix

I. Overview

    This document apportions or allocates the FY 2008 funds available 
under Division K of the Consolidated Appropriations Act, 2008 (Pub. L. 
110-161, December 26, 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). The notice 
does not include allocations of projects designated bus category funds 
or alternative analysis funds in the committee reports accompanying the 
FY 2008 Consolidated Appropriations Act. It also does not include 
extended or redirected project funds identified in those reports or the 
most recent congressional clarification letter dated December 19, 2007. 
FTA will issue a supplemental notice at a later date regarding these 
projects.
    For each FTA program included in this notice, we have provided 
relevant information on the FY 2008 funding currently available, 
program requirements, period of availability, and other related program 
information and highlights, as appropriate. A separate section of the 
document provides information on program requirements

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and guidance that are applicable to all FTA programs.

II. FY 2008 Funding for FTA Programs

A. Funding Based on Division K of the Consolidated Appropriations Act, 
2008 (Pub. L. 110-161, December 26, 2007) and SAFETEA-LU Authorization

    Division K of the Consolidated Appropriations Act, 2008 (Pub. L. 
110-161, December 26, 2007); hereafter called the Consolidated 
Appropriations Act, 2008, provides general funds and obligation 
authority for trust funds that total $9.5 billion for FTA programs, 
through September 30, 2008. Table 1 of this document shows the funding 
for the FTA programs, as provided for in the Consolidated 
Appropriations Act, 2008, and the reallocation to the programs of any 
prior year unobligated funds. All Formula Programs and the section 5309 
Bus and Bus Facilities Program are funded entirely from the Mass 
Transit Account of the Highway Trust Fund in FY 2008. 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 Consolidated Appropriations Act, 
2008. This Federal Register notice includes tables of apportionments 
and allocations for FTA programs based on that Act. Allocations based 
on SAFETEA-LU are also included for some discretionary programs. In 
addition, at a later date, FTA may allocate remaining discretionary 
funds not earmarked in SAFETEA-LU or that were designated in the report 
accompanying the Consolidated Appropriations Act, 2008.

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 capital project under these statutory 
programs; to conduct safety and security, civil rights, procurement, 
management, planning certification reviews, financial reviews and 
audits, as well as evaluations and analyses of grantee specific 
problems and issues; and to provide technical assistance to correct 
deficiencies identified in compliance reviews and audits.
    Section 5327 of title 49 U.S.C., 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 2008 FTA Program Initiatives and Changes

A. SAFETEA-LU Implementation

    In FY 2008, FTA continues to focus on implementation of SAFETEA-LU 
through issuance of new and revised program guidance and regulations. 
Before any documents that place binding obligations on grantees are 
finalized and issued, FTA makes them available for public comment. We 
encourage grantees to regularly check the FTA Web site at https://
www.fta.dot.gov and the U.S. Government docket management Web site at 
https://regulations.gov for new issuances and to comment to the docket 
established for each document on relevant issues.

B. Planning Emphasis Areas

    In recognition of the priority planning organizations and grantees 
are giving to the implementation of the new and changed provisions of 
SAFETEA-LU, FTA and the Federal Highway Administration (FHWA) are not 
issuing new planning emphasis areas for FY 2008, and have rescinded 
planning emphasis areas from prior years.

C. Earmarks and Competitive Grant Opportunities

    SAFETEA-LU contained statutory earmarks under several programs, and 
these are listed in the tables in this Notice. FTA will honor the 
statutory earmarks. In addition, this notice includes tables of 
unobligated balances for earmarks from previous 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. FTA will supplement this notice, at a later date, 
to provide any additional discretionary allocations of funds made 
available in FY 2008 and any prior year earmarks that FTA determines to 
extend or reprogram based on language in the report that accompanied 
the Consolidated Appropriations Act, 2008, or the Congressional 
clarification letter of December 19, 2007, once the Department has 
examined the requests.

D. Changes in Flexible Funding Procedures

    Obligation authority for flexible funds, high priority projects and 
other transit projects in Title 23 U.S.C. is transferred to FTA when it 
is determined that FTA will administer the project. The liquidating 
cash, however, is transferred between Federal accounts only as needed 
to ensure that adequate funds are available for disbursement on a 
timely basis. In order to track the cash flow more closely, FTA no 
longer combines funds transferred from FHWA into a single grant with 
FTA funds in the program to which they are transferred. FTA has 
established codes and procedures for grants involving funds transferred 
from FHWA. Grantees can contact the appropriate regional office for 
assistance.

E. Changes in Match for Biodiesel Vehicles and Hybrid Retrofits

    Section 164 of the Consolidated Appropriations Act, 2008, allows a 
90 percent Federal share for biodiesel buses and for the net capital 
cost of factory-installed or retrofitted hybrid electric propulsion 
systems and any equipment related to such a system. This increased 
federal share is a cross-cutting provision and is applicable across FTA 
programs for any grants awarded during FY 2008 regardless of what 
fiscal year funding is used. Grantees may apply for a 90 percent 
Federal share for the entire cost of a biodiesel bus, but only for the 
cost of the propulsion system and related equipment in the case of the 
hybrid electric systems, not for 90 percent of the cost of the entire 
vehicle. In lieu of calculating the costs of the equipment separately, 
grantees may apply for 83 percent of the cost of the vehicle.

F. National Transit Database (NTD) Strike Policy

    It has previously been FTA's policy not to make adjustments to the 
NTD data used for the apportionment of urbanized area formula grants 
for purposes of offsetting the effects of strikes, labor disputes, or 
work stoppages. FTA has changed this policy, retroactive to NTD Report 
Year (RY) 2005 data. FTA will now make ``hold harmless'' adjustments in 
the NTD data used for the apportionment of urbanized area formula 
grants to offset the effects of strikes, labor disputes, or work 
stoppages. One agency received such an adjustment to their RY 2006 NTD 
data for use in the FY 2008 apportionment. Any other agency that has 
had a valid strike, labor dispute or work stoppage

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during RY 2005, RY 2006, or RY 2007 may request an adjustment to their 
RY 2007 data for use in the FY 2009 apportionment. Agencies 
experiencing a valid strike, labor dispute, or work stoppage in 
subsequent years must file a request for such an adjustment along with 
their NTD submission for that year.
    Instructions for requesting a ``hold harmless'' adjustment can be 
found in the 2007 NTD Reporting Manual, available at https://
www.ntdprogram.gov, under the section on ``Waivers.''

IV. FTA Programs

    This section of the notice provides available FY 2008 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 2008 
funding is available to be obligated, and other significant program 
information pertaining to FY 2008, including the availability of 
competitive opportunities under several programs.

A. Metropolitan Planning Program (49 U.S.C. 5303) (Table 2)

    Section 5305(d) authorizes federal funding to support a 
cooperative, continuous, and comprehensive planning program for 
transportation investment decision-making at the metropolitan area 
level. The specific requirements of metropolitan transportation 
planning are set forth in 49 U.S.C. 5303 and further explained in 23 
CFR Part 450 as referenced in 49 CFR Part 613. State Departments of 
Transportation are direct recipients of funds, which are 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 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $88,510,400 to 
the Metropolitan Planning Program (49 U.S.C. 5305(d) to support 
metropolitan transportation planning activities set forth in 49 U.S.C. 
5303. The total amount apportioned for the Metropolitan Planning 
Program (to States for MPOs' use in urbanized areas (UZAs) is 
$88,229,721, as shown in the table below, after the deduction for 
oversight and the addition of prior year reapportioned funds.

              Metropolitan Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $88,510,400
Oversight Deduction.....................................        -442,552
Prior Year Funds Added..................................         161,873
                                                         ---------------
  Total Apportioned.....................................      88,229,721
------------------------------------------------------------------------

    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 decennial 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 as set forth in SAFETEA-LU and 
implementing regulations.
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, 2011, 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 may 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 can waive the 20 percent local share requirement, with FTA's 
concurrence, to allow FTA funds

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used for metropolitan planning in a CPG to be granted at the higher 
FHWA rate. For some States, this Federal match rate can exceed 90 
percent.
    States interested in transferring planning funds between FTA and 
FHWA should contact the FTA regional office or FHWA Division Office for 
more detailed procedures.
    For further information on CPGs, contact Kristen Clarke, Office of 
Budget and Policy, FTA, at (202) 366-1686, or Kenneth Petty, Office of 
Planning and Environment, FHWA, at (202) 366-6654. For information 
regarding CPGs, Metropolitan planning, or Statewide planning, contact 
Candace Noonan, Office of Planning and Environment, FTA, at (202) 366-
1646.

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

    This program provides financial assistance to States for Statewide 
transportation planning and other technical assistance activities 
(including supplementing the technical assistance program provided 
through the Metropolitan Planning program), planning support for 
nonurbanized areas, research, development and demonstration projects, 
fellowships for training in the public transportation field, university 
research, and human resource development. The specific requirements of 
Statewide transportation planning are set forth in 49 U.S.C. 5304 and 
further explained in 23 CFR part 450 as reference in 49 CFR part 613. 
For more about the Statewide Planning and Research Program contact 
Candace Noonan, Office of Planning and Environment, at (202) 366-1648.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $18,489,600 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 $18,399,717, as shown in the table below, after the deduction 
for oversight (authorized by 49 U.S.C. 5327) and addition of prior year 
reapportioned funds.

                Statewide Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $18,489,600
Oversight Deduction.....................................         -92,448
Prior Year Funds Added..................................           2,565
                                                         ---------------
  Total Apportioned.....................................      18,399,717
------------------------------------------------------------------------

    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 the most recent decennial Census, and the State's UZA 
population as compared to the UZA population of all States.
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 set forth in SAFETEA-LU and implementing 
regulations.
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, 2011, 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, 
in some cases, 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 funds may also be 
used to support planning activities, and may supplement to planning 
projects 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 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $3,910,843,000 
to the Urbanized Area Formula Program (49 U.S.C. 5307). The total 
amount apportioned for the Urbanized Area Formula Program is 
$4,259,697,438 as shown in the table below, after the 0.75 percent 
deduction for oversight (authorized by 49 U.S.C. 5327) and including 
prior year reapportioned funds and funds apportioned to UZAs from the 
appropriation for section 5340 for Growing States and High Density 
States.

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................                \a\
                                                          $3,910,843,000
Oversight Deduction..................................        -29,331,323
Prior Year Funds Added...............................          9,026,596
Section 5340 Funds Added.............................        369,159,165
                                                      ------------------
  Total Apportioned..................................     4,259,697,438
------------------------------------------------------------------------
\a\ 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 to UZAs with populations less than 200,000. For 
UZAs with 50,000 to 199,999 in population, the formula is based solely

[[Page 4960]]

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 2008 apportionment, FTA used population and 
population density statistics from the 2000 Census and (when 
applicable) validated mileage and transit service data from transit 
providers' 2006 National Transit Database (NTD) Report Year. 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 2008 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).
    In FY 2008, one percent of funds appropriated for section 5307, 
$39,108,430, 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 2008 
apportionments comes from the NTD reports for the 2006 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 these 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 2008, FTA apportioned $125,348 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 2008, FTA apportioned 
$150,159,165 to 453 UZA's in all 50 States and $219,000,000 to 46 UZAs 
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, and to UZAs 
proportionately based on UZA population in the 2000 census because 
population estimates are not available at the UZA level. 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 conference report accompanying SAFETEA-LU, 
FTA is 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 to calculate 
and 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

[[Page 4961]]

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 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. 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 2008 Operating Assistance
    UZAs under 200,000 in 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 2008 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)(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 not be used to 
provide public transportation outside of the portion of the UZA.
    (2) 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.
    (3) 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.
    (4) 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.
    In previous years, section 5307(b)(2) allowed UZAs that grew in 
population from under 200,000 to over 200,000, as a result of the 2000 
Census to use section 5307 funds for operating assistance in an amount 
up to 25 percent of the grandfathered amount for

[[Page 4962]]

FY 2005 funds. This provision was effective during FY 2006 and FY 2007 
and completely phased out at the end of FY 2007.
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 unless the 
recipients project a greater local share. 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 as 
reference in 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 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.
[GRAPHIC] [TIFF OMITTED] TN28JA08.000

    The MPO must notify the Associate Administrator for Program 
Management, Federal Transit Administration, 1200 New Jersey Avenue, 
SE., 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, if the Designated Recipient has allocated a portion 
of the areas section 5307 funding for such use. 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, 2011. Any of these apportioned funds that remain unobligated at the 
close of business on September 30, 2011, 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 in 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

[[Page 4963]]

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. For more 
information about this program contact Kimberly Sledge, Office of 
Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $49,000,000 to 
the Clean Fuels Grant Program (49 U.S.C. 5308). SAFETEA-LU earmarked 
$20,247,000 for specific Clean Fuel projects. The balance of 
$28,753,000 will be awarded competitively. FTA will determine projects 
to be funded under the program at a later date.

                        Clean Fuels Grant Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $49,000,000
Funds Allocated to SAFETEA-LU Earmarks..................      20,247,000
Unallocated Funds Available for Discretionary/                28,753,000
 Competitive Allocation.................................
------------------------------------------------------------------------

    Allocations to projects earmarked under the Clean Fuels program in 
SAFETEA-LU are displayed in Table 7.
2. Basis for Allocation of Funds
    Section 3044(b) of SAFETEA-LU included 16 projects to be funded 
through the Clean Fuels program. Table 7 displays the amounts available 
in FY 2008 to the Clean Fuels projects designated in SAFETEA-LU. FY 
2006 and FY 2007 carryover funds are shown in Table 8.
3. Requirements
    FTA published a final rule on March 30, 2007, which revised 
regulations found at 49 CFR part 624. 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 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 2008 
funding for projects included in this notice remains available through 
September 30, 2010. 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.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Clean Fuel allocations in the 
amount of $19,576,930 remain available for obligation in FY 2008. This 
includes $5,352,930 in FY 2006 and $14,224,000 in FY 2007 unobligated 
allocations. The unobligated amounts available as of September 30, 
2007, are displayed in Table 8.

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 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $1,570,000,000 
to the Fixed Guideway Modernization Program. The total amount 
apportioned for the Fixed Guideway Modernization Program is 
$1,554,627,028, after the deduction for oversight, and addition of 
prior year reapportioned funds, as shown in the table below.

                  Fixed Guideway Modernization Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................     $1,570,000,000
Oversight Deduction..................................        -15,700,000
Prior Year Funds Added...............................            327,028
                                                      ------------------
  Total Apportioned..................................      1,554,627,028
------------------------------------------------------------------------

    The FY 2008 Fixed Guideway Modernization Program apportionments to 
eligible areas are displayed in Table 9.
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 2008 Formula apportionments are based on data grantees provided 
to the NTD for the 2006 reporting year. Table 10 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,

[[Page 4964]]

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. A proposed revised circular was 
published for public comments, which are due by January 25, 2008.
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 2008. Any of these 
apportioned funds that remain unobligated at the close of business on 
September 30, 2011, 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 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $823,052,962 
for the bus and bus facilities program. The amount of funding for 
projects designated in section 3044 of SAFETEA-LU for Bus and Bus-
Related Facilities in FY 2008 is $497,670,593. The amount of funding 
for projects designated in the Consolidated Appropriations Act, 2008 is 
$220,599,862. The balance remains unallocated, as shown in the 
following table.

                      Bus and Bus Facility Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................       $927,750,000
Ob lim. Reduction/Rescission.........................       -104,697,038
Oversight Deduction..................................         -8,230,530
Total Available for Allocation.......................        814,822,432
SAFETEA-LU Statutory Provisions Projects.............        497,670,593
Consolidated Appropriations Act Designations.........        220,599,862
Unallocated..........................................         96,551,977
------------------------------------------------------------------------

    The FY 2008 SAFETEA-LU Allocations for the Bus and Bus Facilities 
are displayed in Table 11.
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 11 displays only the allocation of the FY 2008 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. FTA will issue a supplemental notice, 
at a later date, regarding the projects designated in the committee 
reports that accompanied the Consolidated Appropriations Act.
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 Act. In addition, section 3044 of SAFETEA-LU earmarked 
646 Bus and Bus Facilities projects in FY 2008. 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 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. FTA issued a proposed revision 
of the circular and the public comment period on the document ends on 
January 25, 2008.
4. Period of Availability
    The FY 2008 Bus and Bus-Related Facilities funds not obligated for 
their original purpose as of September 30, 2010, may be made available 
for other projects under 49 U.S.C. 5309.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Bus and Bus-Related allocations 
in the amount of $1,127,186,665 remain available for obligation in FY 
2008. This includes $1,091,033,715 in fiscal years 2006 and 2007 
unobligated allocations (earmarked and discretionary projects); 
$35,090,169 for FY 2000-FY 2004 unobligated allocations that were 
extended by previous direction by the House and Senate appropriation 
committees; $1,062,841 for earmarks reallocated in FY 2007. The 
unobligated amounts available as of September 30, 2007, are displayed 
in Table 12. Table

[[Page 4965]]

12 does not include extended or redirected project funds identified in 
the reports accompanying the Consolidated Appropriations Act, 2008, or 
in the most recent congressional clarification letter dated December 
19, 2007. FTA will issue a supplemental notice at a later date.

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, rapid rail (heavy rail), commuter 
rail, monorail, automated fixed guideway system (such as a ``people 
mover''), or a busway/high occupancy vehicle (HOV) facility, Bus Rapid 
Transit that is a fixed guideway, or an extension of any of these. 
Projects become candidates for funding under this program by 
successfully completing the appropriate st