Formula Grants for Rural Areas: Guidance and Application Instructions, 63663-63668 [2014-25309]
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Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
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and amount of matching funds. As
appropriate, the cost proposal also must
set forth the nature and value of in-kind
resources that team members will
contribute to meet the match
requirement.
Provide a line-item budget for the
total project, with enough detail to
indicate the various key components of
the project. As FTA may elect to fund
only a portion of a proposal rather than
the full amount requested by the
applicant, the budget should set forth
the minimum amount necessary to fund
specific project components. As funding
for the Innovative Public Transportation
Workforce Development Program
(Ladders of Opportunity Initiative) is
limited, an application that can be
scaled may receive additional
consideration for funding.
8. Performance Measurement
Provide an approach for
demonstrating the local, nationwide or
regional impact(s) of the project on the
transit industry and broader
employment opportunities. The
proposal should include a description of
the applicant’s plan for recording the
outcomes and reporting in a Final
Report, at a minimum, the following to
FTA at the end of the project:
• The number of individuals affected
by the project. Applicants should define
‘‘affected individuals’’ in terms that
make sense for the proposed project. For
example, other common reported
outcomes could include:
D Target Individuals (Veterans,
Women, Youth, Incumbent Workers,
etc.);
D Number of eligible individuals
entered into program;
D Number of individuals who
successfully complete the program,
achieve applicable credential, etc.;
D Number of placed new workers and/
or advanced incumbent workers;
D Number of retained workers after 90
days.
• The costs of the project and the
share of federal investment.
• At least one performance metric.
Quantitative metrics are preferred, but
qualitative metrics will be considered if
they are based on the experiences of
those affected by the program (as
opposed to the self-assessment of the
applicant or partner agencies). Metrics
could include, but are not limited to,
survey results; exit interviews; or
longitudinal tracking of staff (during the
period of performance only).
• A 1–2 page project description that
will state the project’s initial goals and
measure achievements against those
goals. This statement can also include
‘‘lessons learned.’’
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• A 1–2 page statement of
applicability to other entities. Once the
program is complete, the applicant must
describe how the project could be scaled
and/or altered for application
elsewhere, and what types of benefits
could be realized by doing so.
• Any other performance measure
that the applicant determines would
describe the strengths and weaknesses
of the project.
As part of the proposal, provide
projections (for quantitative measures)
or short hypotheses (for qualitative
measures) of what type of impact/
performance FTA could expect from the
project.
9. Project Management
Describe the applicant’s approach for
managing and staffing the project,
including the distribution of
responsibilities among partner entities
and an organizational chart, if
applicable. Include responsibilities such
as regular reporting, performance
measurement, and technical/
management interactions with FTA.
Quarterly cost and activity progress
reporting is required and can be
submitted in the FTA electronics grant
award system and by email submission
to the FTA Workforce Program Manager.
FTA will provide a template upon
request.
10. Project Staff
List each organization, operator,
consultant, or other key individuals
who will work on the project, along
with short descriptions of their
appropriate technical expertise and
experience (such as past, relevant
research). Attach resumes or curriculum
vitae if available. Project staff resumes
or curriculum vitae will not count
towards the total page count for
proposal submissions.
IV. Award Information
FTA will award grants of a minimum
of $200,000 and a maximum of
$1,000,000. FTA intends to award as
many meritorious projects as possible,
and may elect to award less than the
amount requested by an applicant. In
addition, geographic diversity and the
applicant’s receipt of other discretionary
awards may be considered in FTA’s
award decisions.
A. Notification. After FTA has
selected the proposals to be funded,
successful applicants will be notified by
email or telephone of their status. In
addition, FTA will publish a notice in
the Federal Register announcing
successful applicants. Upon notification
of intent to award funds, FTA may
withdraw its offer to provide Federal
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63663
assistance if the recipient does not
provide a formal application consistent
with its proposal submission within 90
days following the date of the offer.
B. Execution of the FTA Agreement.
FTA will instruct successful applicants
on how to execute their cooperative
agreements in FTA’s electronic grants
management system.
C. Start Date and Incurred Costs.
Absent special circumstances, costs
incurred prior to FTA award are not
eligible as project expenses. Absent
highly unusual circumstances, FTA
cannot retroactively approve a project.
The recipient may begin to incur project
costs as of the date the award letter is
signed by FTA and the awardee
executes the final signature. FTA
expects grantees to implement the
projects awarded as soon as possible
and to fully expend grant funds during
the period of performance, recognizing
that full transparency and
accountability are required for all
expenditures.
V. Contacts for Additional Information
Prospective applicants may visit the
following Web sites for more
information:
• https://www.fta.dot.gov.
• For more on managing projects in
accordance with FTA Circular 6100.1D:
Transit Research and Technology
Programs: Application Instructions and
Program Management Guidelines:
https://fta.dot.gov/legislation_law/
12349_12669.html. This Circular
includes requirements on project
management and administration
including quarterly reporting, financial
management, and payment.
For general program information,
please use the contact information
identified in the front of this notice.
Please contact the Grants.gov Helpdesk
for assistance with electronic
applications at https://www.grants.gov.
You also may contact
support@grants.gov or call toll-free (800)
518–4726.
Therese W. McMillan,
Acting Administrator.
[FR Doc. 2014–25310 Filed 10–23–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA–2013–0023]
Formula Grants for Rural Areas:
Guidance and Application Instructions
Federal Transit Administration
(FTA), DOT.
AGENCY:
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Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
Notice of availability of final
circular.
ACTION:
The Federal Transit
Administration (FTA) has placed in the
docket and on its Web site, guidance in
the form of a circular to assist grantees
in implementing the Section 5311 Rural
Area Formula Program. The purpose of
the circular is to provide recipients of
FTA financial assistance with updated
instructions and guidance on program
administration and the grant application
process. The revisions to FTA Circular
9040.1F are a result of changes made to
the Rural Area Formula Program by the
Moving Ahead for Progress in the 21st
Century Act (MAP–21). FTA is updating
the circular due to these changes in the
law.
DATES: The final circular becomes
effective November 24, 2014.
FOR FURTHER INFORMATION CONTACT: For
program questions contact, Mary Leary,
Office of Program Management, Federal
Transit Administration, 1200 New
Jersey Ave. SE., Room E44–409,
Washington, DC 20590, phone: (202)
366–2204, fax: (202) 366–7951, or email,
Mary.Leary@dot.gov. For legal
questions, Bonnie Graves, Office of
Chief Counsel, same address, Room
E56–306, phone: (202) 366–4011, fax:
(202) 366–3809, or email,
Bonnie.Graves@dot.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents
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I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I—Introduction and
Background
B. Chapter II—Program Overview
C. Chapter III—General Program
Information
D. Chapter IV—Program Development
E. Chapter V—Program Management and
Administrative Requirements
F. Chapter VI—State Management Plans
G. Chapter VII—Appalachian Development
Public Transportation Assistance
Program
H. Chapter VIII—Intercity Bus
I. Chapter IX—Rural Transportation
Assistance Program (RTAP)
J. Chapter X—Public Transportation on
Indian Reservations
K. Chapter XI—Other Provisions
L. Appendices
I. Overview
FTA is updating Circular 9040.1F,
‘‘Non-urbanized Area Formula Program
Guidance and Grant Application
Instructions,’’ last revised in 2007, in
order to incorporate changes in the law
subsequent to passage of the Moving
Ahead for Progress in the 21st Century
Act (MAP–21, Pub. L. 112–141). MAP–
21 renamed the Section 5311 Program as
the Formula Grants for Rural Areas
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Program. Generally the Section 5311
Program provides formula funding to
States and Indian tribes for the purpose
of supporting public transportation in
areas with a population of less than
50,000. Funding may be used for capital
and planning projects, job access and
reverse commute projects, operating
assistance and administration expenses.
On September 26, 2013, FTA issued a
notice of availability of the proposed
circular in the Federal Register (78 FR
59415) and requested public comment
on the proposed circular. The comment
period closed on November 25, 2013.
FTA received comments from 41
entities, including trade associations,
State DOTs, metropolitan planning
organizations, public transportation
providers, human service agencies, and
individuals. This notice addresses
comments received and explains
changes FTA made to the proposed
circular in response to comments.
Some comments were outside the
scope of the circular and are not
addressed in the chapter-by-chapter
analysis. For example, two commenters
asked whether mobility management
would be an eligible expense for the
Section 5339 Bus and Bus Facilities
Program. FTA invites interested
stakeholders to review the recently
published proposed circular for the
Section 5339 program: https://
www.gpo.gov/fdsys/pkg/FR-2014-07-30/
pdf/2014-17926.pdf (79 FR 44241, July
30, 2014). Several commenters noted
typographical errors, pagination errors
and links to Web sites that were not
operational. FTA has edited the circular
to address these issues.
The Section 5311 Program, as
amended by MAP–21, provides for
expanded eligible activities and setasides that support rural transit program
such as the Appalachian Development
Public Transportation Assistance
Program, the Rural Transit Assistance
Program, and the Tribal Transit
Program. The Section 5311 Program
permits activities authorized under the
repealed Job Access and Reverse
Commute (JARC) program to qualify as
Section 5311 eligible activities.
Additionally, since MAP–21 changed
the program’s name from the Formula
Grants for Other Than Urbanized Area
Program to the Formula Grants for Rural
Areas Program, the term ‘‘rural’’
replaces ‘‘non-urbanized area’’ or ‘‘other
than urbanized area’’ throughout the
circular.
In addition to MAP–21 updates
addressed above and outlined below,
the circular updates the organization
and wording of the previous circular to
improve clarity and consistency with
FTA’s other circulars and to reflect
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other changes in the law. This
document does not include the revised
circular; however, an electronic version
is available on FTA’s Web site, at
www.fta.dot.gov. Paper copies may be
obtained by contacting FTA’s
Administrative Services Help Desk, at
(202) 366–4865.
II. Chapter-by-Chapter Analysis
A. Chapter I—Introduction and
Background
Chapter I of the proposed circular is
an introductory chapter and covers
general information about FTA and how
to contact us, briefly reviews the
authorizing legislation for FTA
programs generally, includes definitions
applicable to the Section 5311 Program,
and provides a brief history of the
Section 5311 Program. Where
applicable, we have used the same
definitions found in statutes,
rulemakings, and other circulars to
ensure consistency.
FTA received nine comments on this
chapter, all related to definitions. A
number of commenters suggested that
FTA should be consistent with its
definitions throughout each of its
circulars. Two commenters specifically
indicated there is a discrepancy
between FTA’s and the Federal
Highway Administration’s (FHWA)
definition for ‘‘force account,’’
suggesting the two definitions could
confuse State Departments of
Transportation. FTA notes that FHWA’s
definition is broader than that included
in the circular. However, both the FTA
and FHWA definitions essentially refer
to a recipient’s use of its labor,
equipment, materials, and supplies that
are utilized under its direct control.
Although the FTA definition is
narrower than FHWA’s, FTA does not
believe its definition will cause
confusion and thus it remains
unchanged from the proposed circular.
One commenter suggested that FTA
use either ‘‘applicant’’ or ‘‘grant
applicant’’ throughout the circular.
These terms were used interchangeably
in the proposed circular, but we have
struck references to ‘‘grant applicant’’
and used only ‘‘applicant’’ in the final
circular. The commenter further noted
that the definition for ‘‘capital asset’’
proposed for the Section 5311 circular
should be consistent with the definition
of ‘‘capital asset’’ in Circulars 5010.1D
and 9300.1B. In response, FTA
acknowledges that the circulars
referenced by the commenter have a
slightly different definition for the term
‘‘capital asset,’’ but we note that
5010.1D and 9300.1B will be updated to
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reflect the definition included in this
circular.
One commenter recommended
deleting ‘‘all maintenance costs related
to vehicles and non-vehicles’’ from the
proposed definition for ‘‘preventive
maintenance.’’ The commenter noted
that preventive maintenance includes
all maintenance performed to keep
assets operating properly and avoid
breakdown and deterioration that
results in restorative maintenance. In
response, FTA notes that the definition
included in the proposed circular is
consistent with the definition in the
National Transit Database (NTD);
therefore the definition is included in
the final circular without change. The
same commenter also suggested
consistent use of the terms ‘‘recipient’’
or ‘‘direct recipient’’ otherwise it may
cause confusion. These terms were used
interchangeably in the proposed
circular, but we have struck references
to ‘‘direct recipient’’ in every section
except in chapter III’s discussion of
Indian tribes as direct recipients. In that
particular paragraph, we want to
emphasize the difference between tribes
as subrecipients and tribes as direct
recipients.
Lastly, commenters questioned the
definitions FTA included in the
proposed circular for the terms ‘‘senior’’
‘‘welfare recipient’’ and ‘‘eligible lowincome individual.’’ One commenter
noted that the Older Americans Act
defines ‘‘elderly’’ as 60 years of age or
older. Federal transit law at 49 U.S.C.
5302(18) defines ‘‘senior’’ as an
individual who is 65 years of age or
older. In addition, Federal transit law
defines ‘‘welfare recipient’’ and
‘‘eligible low-income individual’’ at 49
U.S.C. 5302(9), and we have included
these statutory definitions in the
circular. We note that for purposes of
eligibility for reduced fares or
specialized services, public
transportation providers may define
‘‘senior’’ to include individuals under
age 65, as a lower age would be
inclusive of those over age 65. Since
these definitions are statutory, the
proposed definitions for the terms are
included, without change, in the final
circular. FTA has added definitions for
joint development and transit-oriented
development’’ to the Definitions section
of the Circular.
B. Chapter II—Program Overview
In chapter II, FTA proposed updating
the program goals section by adding
three additional goals of the Section
5311 Program: (1) providing financial
assistance to help carry out national
goals related to mobility for all,
including seniors, individuals with
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disabilities, and low-income
individuals; (2) increasing availability of
transportation options through
investments in intercity bus services;
and (3) encouraging mobility
management, employment-related
transportation alternatives, joint
development practices, and transitoriented development.
One commenter supported the
addition of these new goals; however,
the commenter indicated the circular
lacked specifics regarding how the goals
would be reported, the timeframe for
reporting, and how the data would be
reported. In response, FTA notes the
program goals are not intended as
performance goals and recipients will
not report on these overall program
goals. The program goals are provided
as a means to facilitate State
management and FTA oversight of the
Section 5311 Program and should be
included as content for the State
Management Plan as noted in Chapter
VI of the circular.
Another commenter noted that its
ability to replace deteriorating vehicles
in its fleet has been impacted
significantly with the repeal of the
Section 5309 discretionary bus grant
program. In response, FTA notes that
congressional action would be required
in order to reinstate the provisions of
the Section 5309 program, however, the
new Section 5339 Bus and Bus Facilities
Formula Program is designed to provide
a reliable funding stream for bus
replacement. In addition, FTA notes
that Section 5311 provides the Governor
with discretion to allocate funding as
deemed appropriate to mitigate rural
transportation gaps within the State.
C. Chapter III—General Program
Information
FTA received a number of comments
on this chapter, many related to the
proposed changes in job access reverse
commute project eligibility. A few
commenters indicated FTA should
permit the State to continue to fund job
access and reverse commute projects
that were previously funded with
SAFETEA–LU Section 5311 funds as job
access and reverse commute
maintenance projects under the program
as it is now authorized by MAP–21. In
response to comments, we have clarified
the language in the circular to permit
SAFETEA–LU Section 5311 funded
projects that qualified as job access and
reverse commute projects to continue to
be considered job access and reverse
commute maintenance projects under
this program. This does not apply under
the Section 5307 program in which job
access and reverse commute projects
must have either been previously
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funded with Section 5316 funding to be
considered job access and reverse
commute maintenance projects or be
new as of October 1, 2012 to be
considered development projects. Each
State should ensure it has expended all
of its Section 5316 JARC funds available
under SAFETEA–LU before funding job
access and reverse commute-type
projects with Section 5311 funds
authorized by MAP–21. As a reminder,
there is no floor or ceiling for the
amount of Section 5311 funds spent on
job access and reverse commute projects
under MAP–21. Further, although there
is no statutory requirement for job
access and reverse projects to be part of
a coordinated plan, FTA continues to
encourage States and rural communities
to consider including these projects in
a coordinated planning process
consistent with the Statewide planning
process.
Several commenters indicated that
FTA should revise Chapter III to clarify
that nonprofits are eligible as
subrecipients for Section 5311 funding
and eliminate any reference to projects
in large urbanized areas. In response,
FTA has revised the chapter accordingly
and it now specifically indicates that
nonprofit organizations are eligible
subrecipients for Section 5311 funding.
In addition, we have removed language
related to large urbanized areas.
One commenter recommended that
FTA require States to factor the
percentage of low-income individuals in
the allocation of formula funds to rural
transit districts. In response, FTA does
not have the statutory authority to
require States to do so; however, the law
does require States to distribute funds in
a fair manner. 49 U.S.C. 5311(b)(2)(C).
One commenter asked about the
oversight responsibilities of the State
when an Indian tribe elects to be a
subrecipient of the State and not a direct
recipient of funds. When a Tribe is a
subrecipient of a State, the State has the
same oversight responsibilities of that
Tribe as it does for other subrecipients.
However, when a tribe elects to receive
a 5311 allocation directly from FTA, it
is responsible for compliance with all
5311 program requirements. States
would not be responsible for oversight
for tribes that receive direct grants from
the FTA, unless there are additional
State resources or requirements that
require State oversight.
A few commenters requested
clarification in sections 3 and 4 of this
chapter related to operating expenses,
program income, and local match
requirements with respect to human
service contracts. FTA has reviewed the
sections and finds the language to be
consistent: Both sections state that
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income from such contracts may be
used either to reduce the project cost
(treated as revenue) or used as local
match for Section 5311 operating grants
(treated as program income). In
addition, we have added additional
language regarding the timing of
applying these funds to a grant. FTA
will also update the Section 5307
circular to reflect the additional
language it has included in the Section
5311 circular.
Lastly, one commenter requested
clarification regarding the availability of
Section 5311 funding for safety
certification training of employees
directly responsible for safety oversight.
Title 49 U.S.C. 5329(e)(6) provides that
Section 5311 recipients may use not
more than 0.5 percent of their formula
funds to pay not more than 80 percent
of the cost of participation in the public
transportation safety certification
training program established under
subsection 49 U.S.C. 5329(c), by an
employee who is directly responsible
for safety oversight. Further guidance
regarding the safety certification
training will be forthcoming as FTA is
implementing the requirements for
safety certification training via
rulemaking.
D. Chapter IV—Program Development
In this chapter, FTA proposed adding
information regarding MAP–21’s new
performance-based planning approach
and revising the program of projects
(POPs) section. FTA received comments
from four entities on this chapter.
Regarding FTA’s effort to further
performance-based planning in
accordance with MAP–21, one
commenter asked for confirmation that
State designation of ‘‘Rural
Transportation Planning Organizations’’
(RTPO’s) would not impact its current
rural transportation planning process.
FTA notes the language in the circular
comes from 49 U.S.C. 5304(l), and States
are not required to designate RTPO’s, so
such designation should not negatively
impact the commenter’s rural
transportation planning process.
Two commenters expressed support
for FTA’s proposal to provide greater
flexibility to States when making minor
revisions to the POP. Commenters noted
that while the POP is not a MAP–21
requirement, the Statewide
Transportation Improvement Plan
(STIP) is, and therefore, FTA should
avoid language in the circular that might
lead FTA regional offices to require
applicants to include unnecessary
details with the POP submissions.
In response, FTA notes there may be
instances when a regional office may
require additional information for
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oversight purposes that may not be
listed in the circular. In addition, if a
State includes projects for both rural
areas and small urbanized areas in the
POP, the regional office may need
additional information in order to
obligate the funds. Reviewing the POP
at the time an applicant submits a grant
application is necessary to allow FTA to
check that the requirements of the
Federal Funding Accountability and
Transparency Act (FFATA) are met and
that the distribution of resources seems
reasonable.
Some commenters recommended that
FTA amend its pre-award process to
provide recipients with immediate
approval to incur costs and seek Federal
reimbursement for certain categories of
projects. In response, FTA notes that
currently, pre-award authority for
formula funds is granted for a period of
time consistent with the current
authorization or two fiscal years in
advance, whichever is longer. This
allows recipients to expend anticipated
resources in advance of the funds being
obligated so long as all Federal
requirements have been met. We believe
this level of pre-award authority for
Section 5311 funds is broader than what
the commenters recommend.
Some commenters asserted the
proposed text for revising POP
submissions in section 5b(3)(c)(1) was
vague and recommended it be revised
for clarification. In response, FTA has
revised the circular to include a specific
example to assist with interpreting this
requirement. FTA also notes that it is in
the process of developing a new
electronic award management system
and will continue to consider ways to
streamline the grant process as a part of
the new system.
One commenter stated the 15 percent
requirement for service that supports
intercity bus has proven impracticable,
and that this ‘‘fixed percentage’’ does
not allow States and communities to
determine the appropriate mix of public
transportation services. The commenter
suggested FTA’s ‘‘rigid definition’’ of
intercity bus makes services between
significant employment, housing,
recreational and retail centers ineligible,
even though such services are critical to
the economic vitality of rural
communities. Title 49 U.S.C. 5311(f)
states that ‘‘at least’’ 15 percent of
Section 5311 funds made available to a
State in a fiscal year will be used for the
intercity bus transportation program.
This is a floor, not a ceiling, and each
State has discretion regarding whether
to expend more than the statutory
minimum of 15 percent for intercity
bus. FTA further notes that one
objective of the intercity bus program is
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to support connections between rural
areas and the larger regional or national
system of intercity bus service.
Transportation between employment,
housing, recreational and retail centers
may be provided by fixed route,
demand-responsive, or commuter bus
service. Please see the discussion of
chapter VIII, below, for additional
comments on intercity bus service.
E. Chapter V—Program Management
and Administrative Requirements
FTA proposed amendments to this
chapter to clarify and update
established requirements for recipients
of Federal funds.
In the proposed circular under section
3, Equipment Management, FTA added
statutory language found in 49 U.S.C.
5334(h) related to the transfer of
property. Several commenters sought
clarification regarding the process FTA
will use for reviewing the transfer of
property acquired with Section 5311
funds and no longer needed for a public
transportation purpose. In particular,
commenters found this to be
inconsistent with the direction given in
49 CFR 18.32, which allows States to
follow their own procedures for use,
management, and disposition of
equipment. In response, when
equipment has reached the end of its
useful life, States may follow their own
procedures. However, and consistent
with FTA’s Master Agreement, if a State
withdraws equipment from public
transportation service prior to the end of
the equipment’s useful life, FTA retains
a Federal interest in that equipment and
the State must notify FTA of the
withdrawal. FTA has added language to
this section to clarify this requirement.
One commenter, addressing language
in section 5, Procurement, asked if a
competitive process must be used before
a local governmental authority may pass
through funds to a non-profit
organization subrecipient. A bidding
process is not required before a local
governmental authority may pass
through Section 5311 funds to a nonprofit organization provided the nonprofit would otherwise be eligible under
Section 5311 to receive funds directly
from the State as a subrecipient, and the
non-profit uses the funds to pursue its
own rural area transit project.
Two commenters noted that the small
purchase threshold was listed at
$150,000 in section 5.a and at $100,000
in section 5.d and asked which was
correct. On December 26, 2013, the
Office of Management and Budget
issued final guidance 2 CFR Part 200
‘‘Uniform Administrative Requirements,
Cost Principles, and Audit
Requirements for Federal Awards’’ also
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known as the ‘‘Super Circular.’’ 78 FR
78590. The guidance, which will take
effect when the U.S. DOT issues new
regulations consistent with the guidance
and will supersede and apply in lieu of
the common grant rule (49 CFR parts 18
and 19), will change the simplified
acquisition threshold from $100,000 to
$150,000 to match the Federal
Acquisition Regulation. See 2 CFR
200.88. Until U.S. DOT adopts the
Super Circular by regulation, the
threshold will remain $100,000. We
have edited the final circular
accordingly.
One commenter asserted that the
Federal Funding Accountability and
Transparency Act (FFATA) reporting
deadlines cannot be met due to
administrative processing delays. The
commenter noted that in a specific
instance, five weeks after a grant was
pinned (funds obligated) the grant was
not yet in the FFATA database. As a
reminder, the reporting deadline is not
contingent on when FTA awards the
grant to the recipient, but when the
recipient makes an award to a
subrecipient. FTA does not have the
authority to change the reporting
deadline, and advises recipients to
report as expeditiously as possible when
there is a delay in having the grant
posted to the FFATA database.
Transportation Program (ADTAP), a
new program established by MAP–21.
The ADTAP provides funds to support
public transportation service in the
Appalachian Region, which includes all
of West Virginia and eligible counties in
12 other States: Alabama, Georgia,
Kentucky, Maryland, Mississippi, New
York, North Carolina, Ohio,
Pennsylvania, South Carolina,
Tennessee, and Virginia.
Two entities commented on this
chapter. One commenter asked if
ADTAP funding would be in addition to
Section 5311 funds that may be
allocated for a project within an eligible
Appalachian county. Funding for
ADTAP projects is a set-aside from
available Section 5311 funds and a
separate allocation to States in the
Appalachian Region. States should use
ADTAP formula funds for transit
projects within the designated
Appalachian region and use other
Section 5311 funds to address needs not
covered by the ADTAP allocation.
The other commenter recommended
elimination of the ADTAP funding in its
entirety. In response, FTA notes that
ADTAP was established by statute;
therefore, FTA will implement the
program in accordance with Section
5311(c)(2). FTA did not make any
substantive changes to this chapter.
F. Chapter VI—State Management Plans
FTA proposed two substantive
changes to this chapter. One change
required the State to document the
process used to validate the source of
in-kind match for intercity bus
transportation when it is used as the
local match. The second change aligned
the circular with changes to 49 U.S.C
5310 as amended by MAP–21, which no
longer permits Section 5310 funds to be
transferred to Section 5311.
FTA did not receive any substantive
comments to this chapter. We have
made minor technical corrections. For
example, in section 1, General, we
struck a sentence reading, ‘‘A State may
be required to update its SMP if section
5339 funds are transferred to an area
with a population under 50,000.’’ In its
place, we have added section 5339 to
the list of programs that States must
include in their policies and procedures
(i.e., section 5310, 5311, 5316, 5317 and
5339). We also made a technical
correction to the charter language so it
is consistent with the charter rule.
H. Chapter VIII—Intercity Bus
FTA proposed two revisions for
intercity bus transportation services to
reflect a change and a deadline in the
law. FTA noted that the previous
‘‘Intercity Pilot Match Program,’’ which
FTA established in 2007, is now
codified under 49 U.S.C. 5311(f) and we
requested comments on the proposed
guidance for ‘‘in-kind’’ match to
implement the statute. Second, FTA
deleted the section on the over-the-road
bus accessibility incentive program, as
MAP–21 repealed the program, and we
updated the ADA regulation section of
this chapter to reflect the requirement in
49 CFR 37.185 that as of October 29,
2012, over-the-road buses (OTRB) that
provide fixed route service must be
accessible to and usable by individuals
with disabilities, including individuals
who use wheelchairs.
Nearly half of the entities commenting
on the circular commented on this
chapter. The majority of commenters
disagreed with FTA’s proposal
regarding the determination for in-kind
match for intercity bus services. The
commenters asserted that FTA’s
proposal to limit eligible costs to capital
costs was inconsistent with 49 U.S.C.
5311(g)(3)(D). In response, FTA has
revised section 5 of this chapter to
reflect that FTA will allow the eligible
G. Chapter VII—Appalachian
Development Public Transportation
Assistance Program
FTA proposed a new chapter for this
circular in order to provide guidance for
the Appalachian Development Public
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20:00 Oct 23, 2014
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Frm 00071
Fmt 4703
Sfmt 4703
63667
net cost to be calculated using one of
two options. FTA funds may only be
used to fund the net costs of a project,
so in either option, fare revenue must be
subtracted from the total cost to
determine the eligible amount of in-kind
match. In the final circular, FTA
maintains the option of using capital
cost of contracting ratios for simplicity
in calculating the net costs of the
project. In addition, the final circular
further notes that on a case-by-case
basis, if a private operator has excess
funds of both unsubsidized capital and
operating costs for providing intercity
services, FTA may allow these funds to
count toward the in-kind match. The
private provider must demonstrate that
some of the operating costs of the
service are being cross-subsidized by
profits elsewhere on its system, and not
fully covered by farebox revenue. The
appropriate FTA regional office will be
available to assist a recipient in
determining in-kind match
determinations and the documentation
required to support a private operator’s
cost basis.
One commenter suggested that FTA
change the term ‘‘intercity bus service’’
to ‘‘intercity transportation service’’ in
order to not ‘‘favor connections to one
mode over connections to others.’’ By
statute, Section 5311(f) addresses the
eligibility of ‘‘intercity bus
transportation,’’ so FTA declines to
make that change. Another commenter
asserted that because the guidance
limits the definition of ‘‘intercity bus
service’’ to service ‘‘that makes
meaningful connections with scheduled
intercity bus service to more distant
points, if such service is available,’’ that
this has been interpreted as prohibiting
the use of these funds for intercity bus
service that connects to the national
aviation or intercity passenger rail
networks.
In response, FTA notes that the
guidance in this chapter does not
prohibit intercity bus feeder service
from providing access to intercity
connections with rail or air service.
However, FTA believes that feeder
service linkage to the national rail
network that is not linked to small
public transportation operators (e.g.,
through an intermodal terminal/stop)
does not comply with 49 U.S.C. 5311(f).
To clarify the eligibility of connections
with rail service when part of an
intermodal terminal, we have amended
section 8, Eligible Activities, to provide
that private intercity bus operators may
participate in improvements to existing
intercity terminal facilities for rural
passengers, as well as modifications to
transit facilities to facilitate shared use
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Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
by intercity bus, intercity rail, and rural
transit operators.
One commenter was encouraged by
the definition of ‘‘feeder service’’ but
recommended that FTA require or
provide incentives to States for Section
5311 intercity bus service projects that
directly involve rural districts to ensure
better and more meaningful access to
intercity bus service. In response, FTA
notes that States have flexibility to
administer the program to meet the
needs of their rural regions and districts,
so declines to make the suggested
change.
Lastly, one commenter read Section
10, ADA Regulations, to mean that any
and all Section 5311(f) over-the-road
intercity bus recipients, subrecipients
and contractors must use vehicles that
are fully wheelchair accessible. While
that is true of large operators that are
Class I motor carriers providing fixedroute service, the ADA regulations allow
small operators greater flexibility. Small
operators can either ensure that vehicles
are readily accessible to and usable by
individuals with disabilities, including
individuals who use wheelchairs, or
ensure that equivalent service is
provided to individuals with
disabilities. We have amended this
section accordingly.
I. Chapter IX—Rural Transportation
Assistance Program (RTAP)
FTA did not propose any substantive
changes for this chapter and did not
receive any comments. The RTAP
continues to provide funding to assist in
the design and implementation of
training and technical assistance
projects, research, and other support
services. We did not make any
substantive changes to this chapter.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
J. Chapter X—Public Transportation on
Indian Reservations
FTA proposed a new chapter in the
circular to address public transportation
on Indian reservations, or the ‘‘Tribal
Transit Program.’’ Section 5311(c)
authorizes $5 million annually for this
program, distributed on a competitive
basis; and $25 million annually for this
program, apportioned by a statutory
formula found in Section 5311(j). The
formula apportions funds on the basis of
vehicle revenue miles and the number
of low-income individuals residing on
tribal lands. FTA received comments
from six entities regarding this chapter.
Two commenters expressed
appreciation for the new formula
funding, while others had concerns
about the basis for determining how
much assistance Tribes receive, and
expressed concern that they no longer
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20:00 Oct 23, 2014
Jkt 235001
receive enough Tribal Transit funding to
operate their existing systems.
FTA understands that the transition
from a $15 million discretionary
program to a mixed formula and
discretionary program has been
challenging for some Tribes, despite the
fact that the total funding level doubled.
Generally, the comments FTA received
on the Section 5311 circular were
addressed as part of the tribal
consultation process FTA initiated last
year. On November 9, 2012, FTA
published a notice in the Federal
Register (77 FR 67439) in order to (1)
introduce FTA’s consultation process
and schedule for implementing changes
to the Tribal Transit Program due to
MAP–21; (2) describe and seek
comment on the methodology for the
formula allocation and the assumptions
made regarding which Tribes are
eligible for the formula program; (3)
seek comment on the terms and
conditions for the formula and
discretionary components of the
program; and (4) seek comment on how
the discretionary program resources
should be allocated. As part of the tribal
consultation process, FTA conducted
two outreach meetings in November and
December of 2012. After considering
comments, FTA published a subsequent
notice in the Federal Register (78 FR
27284, May 9, 2013) in which it
responded to issues presented as a
result of the consultation process. That
notice also announced the funding
levels and framework for the Tribal
Transit Program, as well as a notice of
funding availability (NOFA) for FY 13
funds. FTA encourages interested
stakeholders to review the two Federal
Register notices, available on FTA’s
Web site (https://www.fta.dot.gov/
legislation_law/federal_register_
notices.php) if they have additional
concerns about the funding or
framework of this program. FTA has not
made any substantive edits to this
chapter.
K. Chapter XI—Other Provisions
This chapter describes cross-cutting
Federal requirements that apply to the
Section 5311 Program. FTA did not
receive any substantive comments on
this chapter and did not make any
substantive edits.
L. Appendices
One commenter requested FTA
include additional information related
to the requirements of 49 U.S.C. 5333(b)
(labor protections) in Appendix A. It is
not clear to us what additional
information would be helpful, and we
recommend that interested stakeholders
contact their FTA regional office if they
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
have questions regarding the role of the
Department of Labor in processing
Section 5311 grants.
Another commenter recommended
that Appendix B include a POP section
for JARC. In response, we have added
language indicating that JARC projects
must be coded under 646–00 SCOPE in
the grant and reserved using FPC 03.
Lastly, one commenter asked for
clarification regarding section 3 of
Appendix F and the methodology for
excess or insufficient in-kind match
determinations for intercity bus. FTA
provided additional clarification in
revisions to Chapter VIII, Intercity Bus
and eliminated Appendix F as the
information was redundant with the
information contained in the chapter.
Therese W. McMillan,
Acting Administrator.
[FR Doc. 2014–25309 Filed 10–23–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. FD 35863]
Massachusetts Department of
Transportation—Acquisition
Exemption—Pan Am Southern LLC
The Massachusetts Department of
Transportation (MassDOT), a noncarrier,
has filed a verified notice of exemption
under 49 CFR 1150.31 to acquire from
Pan Am Southern LLC (PAS) certain
railroad assets and associated rail line
right-of-way, known generally as a
portion of the Connecticut River Main
Line (also known as the ‘‘Knowledge
Corridor’’), approximately 49.67 route
miles in length, from Station 2+25 in
Springfield, Mass., to the
Massachusetts-Vermont border at
Station 2613+66.85 at East Northfield,
Mass. (the Railroad Assets). As part of
this transaction, MassDOT would also
acquire any right, title, or interest that
PAS may currently possess to operate
passenger trains over a segment of
Amtrak-owned line between Springfield
and the Massachusetts-Connecticut
border. According to MassDOT, it is not
acquiring any freight operating rights,
and PAS will retain a permanent,
exclusive freight operating easement
over the Railroad Assets.1
MassDOT states that the proposed
transaction has been agreed upon
1 Concurrently with its verified notice of
exemption, MassDOT filed a motion to dismiss it
on the ground that the transaction does not require
authorization from the Board. The motion to
dismiss will be addressed in a subsequent Board
decision.
E:\FR\FM\24OCN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 206 (Friday, October 24, 2014)]
[Notices]
[Pages 63663-63668]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25309]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2013-0023]
Formula Grants for Rural Areas: Guidance and Application
Instructions
AGENCY: Federal Transit Administration (FTA), DOT.
[[Page 63664]]
ACTION: Notice of availability of final circular.
-----------------------------------------------------------------------
SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its Web site, guidance in the form of a circular to
assist grantees in implementing the Section 5311 Rural Area Formula
Program. The purpose of the circular is to provide recipients of FTA
financial assistance with updated instructions and guidance on program
administration and the grant application process. The revisions to FTA
Circular 9040.1F are a result of changes made to the Rural Area Formula
Program by the Moving Ahead for Progress in the 21st Century Act (MAP-
21). FTA is updating the circular due to these changes in the law.
DATES: The final circular becomes effective November 24, 2014.
FOR FURTHER INFORMATION CONTACT: For program questions contact, Mary
Leary, Office of Program Management, Federal Transit Administration,
1200 New Jersey Ave. SE., Room E44-409, Washington, DC 20590, phone:
(202) 366-2204, fax: (202) 366-7951, or email, Mary.Leary@dot.gov. For
legal questions, Bonnie Graves, Office of Chief Counsel, same address,
Room E56-306, phone: (202) 366-4011, fax: (202) 366-3809, or email,
Bonnie.Graves@dot.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overview
C. Chapter III--General Program Information
D. Chapter IV--Program Development
E. Chapter V--Program Management and Administrative Requirements
F. Chapter VI--State Management Plans
G. Chapter VII--Appalachian Development Public Transportation
Assistance Program
H. Chapter VIII--Intercity Bus
I. Chapter IX--Rural Transportation Assistance Program (RTAP)
J. Chapter X--Public Transportation on Indian Reservations
K. Chapter XI--Other Provisions
L. Appendices
I. Overview
FTA is updating Circular 9040.1F, ``Non-urbanized Area Formula
Program Guidance and Grant Application Instructions,'' last revised in
2007, in order to incorporate changes in the law subsequent to passage
of the Moving Ahead for Progress in the 21st Century Act (MAP-21, Pub.
L. 112-141). MAP-21 renamed the Section 5311 Program as the Formula
Grants for Rural Areas Program. Generally the Section 5311 Program
provides formula funding to States and Indian tribes for the purpose of
supporting public transportation in areas with a population of less
than 50,000. Funding may be used for capital and planning projects, job
access and reverse commute projects, operating assistance and
administration expenses.
On September 26, 2013, FTA issued a notice of availability of the
proposed circular in the Federal Register (78 FR 59415) and requested
public comment on the proposed circular. The comment period closed on
November 25, 2013. FTA received comments from 41 entities, including
trade associations, State DOTs, metropolitan planning organizations,
public transportation providers, human service agencies, and
individuals. This notice addresses comments received and explains
changes FTA made to the proposed circular in response to comments.
Some comments were outside the scope of the circular and are not
addressed in the chapter-by-chapter analysis. For example, two
commenters asked whether mobility management would be an eligible
expense for the Section 5339 Bus and Bus Facilities Program. FTA
invites interested stakeholders to review the recently published
proposed circular for the Section 5339 program: https://www.gpo.gov/fdsys/pkg/FR-2014-07-30/pdf/2014-17926.pdf (79 FR 44241, July 30,
2014). Several commenters noted typographical errors, pagination errors
and links to Web sites that were not operational. FTA has edited the
circular to address these issues.
The Section 5311 Program, as amended by MAP-21, provides for
expanded eligible activities and set-asides that support rural transit
program such as the Appalachian Development Public Transportation
Assistance Program, the Rural Transit Assistance Program, and the
Tribal Transit Program. The Section 5311 Program permits activities
authorized under the repealed Job Access and Reverse Commute (JARC)
program to qualify as Section 5311 eligible activities. Additionally,
since MAP-21 changed the program's name from the Formula Grants for
Other Than Urbanized Area Program to the Formula Grants for Rural Areas
Program, the term ``rural'' replaces ``non-urbanized area'' or ``other
than urbanized area'' throughout the circular.
In addition to MAP-21 updates addressed above and outlined below,
the circular updates the organization and wording of the previous
circular to improve clarity and consistency with FTA's other circulars
and to reflect other changes in the law. This document does not include
the revised circular; however, an electronic version is available on
FTA's Web site, at www.fta.dot.gov. Paper copies may be obtained by
contacting FTA's Administrative Services Help Desk, at (202) 366-4865.
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Chapter I of the proposed circular is an introductory chapter and
covers general information about FTA and how to contact us, briefly
reviews the authorizing legislation for FTA programs generally,
includes definitions applicable to the Section 5311 Program, and
provides a brief history of the Section 5311 Program. Where applicable,
we have used the same definitions found in statutes, rulemakings, and
other circulars to ensure consistency.
FTA received nine comments on this chapter, all related to
definitions. A number of commenters suggested that FTA should be
consistent with its definitions throughout each of its circulars. Two
commenters specifically indicated there is a discrepancy between FTA's
and the Federal Highway Administration's (FHWA) definition for ``force
account,'' suggesting the two definitions could confuse State
Departments of Transportation. FTA notes that FHWA's definition is
broader than that included in the circular. However, both the FTA and
FHWA definitions essentially refer to a recipient's use of its labor,
equipment, materials, and supplies that are utilized under its direct
control. Although the FTA definition is narrower than FHWA's, FTA does
not believe its definition will cause confusion and thus it remains
unchanged from the proposed circular.
One commenter suggested that FTA use either ``applicant'' or
``grant applicant'' throughout the circular. These terms were used
interchangeably in the proposed circular, but we have struck references
to ``grant applicant'' and used only ``applicant'' in the final
circular. The commenter further noted that the definition for ``capital
asset'' proposed for the Section 5311 circular should be consistent
with the definition of ``capital asset'' in Circulars 5010.1D and
9300.1B. In response, FTA acknowledges that the circulars referenced by
the commenter have a slightly different definition for the term
``capital asset,'' but we note that 5010.1D and 9300.1B will be updated
to
[[Page 63665]]
reflect the definition included in this circular.
One commenter recommended deleting ``all maintenance costs related
to vehicles and non-vehicles'' from the proposed definition for
``preventive maintenance.'' The commenter noted that preventive
maintenance includes all maintenance performed to keep assets operating
properly and avoid breakdown and deterioration that results in
restorative maintenance. In response, FTA notes that the definition
included in the proposed circular is consistent with the definition in
the National Transit Database (NTD); therefore the definition is
included in the final circular without change. The same commenter also
suggested consistent use of the terms ``recipient'' or ``direct
recipient'' otherwise it may cause confusion. These terms were used
interchangeably in the proposed circular, but we have struck references
to ``direct recipient'' in every section except in chapter III's
discussion of Indian tribes as direct recipients. In that particular
paragraph, we want to emphasize the difference between tribes as
subrecipients and tribes as direct recipients.
Lastly, commenters questioned the definitions FTA included in the
proposed circular for the terms ``senior'' ``welfare recipient'' and
``eligible low-income individual.'' One commenter noted that the Older
Americans Act defines ``elderly'' as 60 years of age or older. Federal
transit law at 49 U.S.C. 5302(18) defines ``senior'' as an individual
who is 65 years of age or older. In addition, Federal transit law
defines ``welfare recipient'' and ``eligible low-income individual'' at
49 U.S.C. 5302(9), and we have included these statutory definitions in
the circular. We note that for purposes of eligibility for reduced
fares or specialized services, public transportation providers may
define ``senior'' to include individuals under age 65, as a lower age
would be inclusive of those over age 65. Since these definitions are
statutory, the proposed definitions for the terms are included, without
change, in the final circular. FTA has added definitions for joint
development and transit-oriented development'' to the Definitions
section of the Circular.
B. Chapter II--Program Overview
In chapter II, FTA proposed updating the program goals section by
adding three additional goals of the Section 5311 Program: (1)
providing financial assistance to help carry out national goals related
to mobility for all, including seniors, individuals with disabilities,
and low-income individuals; (2) increasing availability of
transportation options through investments in intercity bus services;
and (3) encouraging mobility management, employment-related
transportation alternatives, joint development practices, and transit-
oriented development.
One commenter supported the addition of these new goals; however,
the commenter indicated the circular lacked specifics regarding how the
goals would be reported, the timeframe for reporting, and how the data
would be reported. In response, FTA notes the program goals are not
intended as performance goals and recipients will not report on these
overall program goals. The program goals are provided as a means to
facilitate State management and FTA oversight of the Section 5311
Program and should be included as content for the State Management Plan
as noted in Chapter VI of the circular.
Another commenter noted that its ability to replace deteriorating
vehicles in its fleet has been impacted significantly with the repeal
of the Section 5309 discretionary bus grant program. In response, FTA
notes that congressional action would be required in order to reinstate
the provisions of the Section 5309 program, however, the new Section
5339 Bus and Bus Facilities Formula Program is designed to provide a
reliable funding stream for bus replacement. In addition, FTA notes
that Section 5311 provides the Governor with discretion to allocate
funding as deemed appropriate to mitigate rural transportation gaps
within the State.
C. Chapter III--General Program Information
FTA received a number of comments on this chapter, many related to
the proposed changes in job access reverse commute project eligibility.
A few commenters indicated FTA should permit the State to continue to
fund job access and reverse commute projects that were previously
funded with SAFETEA-LU Section 5311 funds as job access and reverse
commute maintenance projects under the program as it is now authorized
by MAP-21. In response to comments, we have clarified the language in
the circular to permit SAFETEA-LU Section 5311 funded projects that
qualified as job access and reverse commute projects to continue to be
considered job access and reverse commute maintenance projects under
this program. This does not apply under the Section 5307 program in
which job access and reverse commute projects must have either been
previously funded with Section 5316 funding to be considered job access
and reverse commute maintenance projects or be new as of October 1,
2012 to be considered development projects. Each State should ensure it
has expended all of its Section 5316 JARC funds available under
SAFETEA-LU before funding job access and reverse commute-type projects
with Section 5311 funds authorized by MAP-21. As a reminder, there is
no floor or ceiling for the amount of Section 5311 funds spent on job
access and reverse commute projects under MAP-21. Further, although
there is no statutory requirement for job access and reverse projects
to be part of a coordinated plan, FTA continues to encourage States and
rural communities to consider including these projects in a coordinated
planning process consistent with the Statewide planning process.
Several commenters indicated that FTA should revise Chapter III to
clarify that nonprofits are eligible as subrecipients for Section 5311
funding and eliminate any reference to projects in large urbanized
areas. In response, FTA has revised the chapter accordingly and it now
specifically indicates that nonprofit organizations are eligible
subrecipients for Section 5311 funding. In addition, we have removed
language related to large urbanized areas.
One commenter recommended that FTA require States to factor the
percentage of low-income individuals in the allocation of formula funds
to rural transit districts. In response, FTA does not have the
statutory authority to require States to do so; however, the law does
require States to distribute funds in a fair manner. 49 U.S.C.
5311(b)(2)(C).
One commenter asked about the oversight responsibilities of the
State when an Indian tribe elects to be a subrecipient of the State and
not a direct recipient of funds. When a Tribe is a subrecipient of a
State, the State has the same oversight responsibilities of that Tribe
as it does for other subrecipients. However, when a tribe elects to
receive a 5311 allocation directly from FTA, it is responsible for
compliance with all 5311 program requirements. States would not be
responsible for oversight for tribes that receive direct grants from
the FTA, unless there are additional State resources or requirements
that require State oversight.
A few commenters requested clarification in sections 3 and 4 of
this chapter related to operating expenses, program income, and local
match requirements with respect to human service contracts. FTA has
reviewed the sections and finds the language to be consistent: Both
sections state that
[[Page 63666]]
income from such contracts may be used either to reduce the project
cost (treated as revenue) or used as local match for Section 5311
operating grants (treated as program income). In addition, we have
added additional language regarding the timing of applying these funds
to a grant. FTA will also update the Section 5307 circular to reflect
the additional language it has included in the Section 5311 circular.
Lastly, one commenter requested clarification regarding the
availability of Section 5311 funding for safety certification training
of employees directly responsible for safety oversight. Title 49 U.S.C.
5329(e)(6) provides that Section 5311 recipients may use not more than
0.5 percent of their formula funds to pay not more than 80 percent of
the cost of participation in the public transportation safety
certification training program established under subsection 49 U.S.C.
5329(c), by an employee who is directly responsible for safety
oversight. Further guidance regarding the safety certification training
will be forthcoming as FTA is implementing the requirements for safety
certification training via rulemaking.
D. Chapter IV--Program Development
In this chapter, FTA proposed adding information regarding MAP-21's
new performance-based planning approach and revising the program of
projects (POPs) section. FTA received comments from four entities on
this chapter.
Regarding FTA's effort to further performance-based planning in
accordance with MAP-21, one commenter asked for confirmation that State
designation of ``Rural Transportation Planning Organizations'' (RTPO's)
would not impact its current rural transportation planning process. FTA
notes the language in the circular comes from 49 U.S.C. 5304(l), and
States are not required to designate RTPO's, so such designation should
not negatively impact the commenter's rural transportation planning
process.
Two commenters expressed support for FTA's proposal to provide
greater flexibility to States when making minor revisions to the POP.
Commenters noted that while the POP is not a MAP-21 requirement, the
Statewide Transportation Improvement Plan (STIP) is, and therefore, FTA
should avoid language in the circular that might lead FTA regional
offices to require applicants to include unnecessary details with the
POP submissions.
In response, FTA notes there may be instances when a regional
office may require additional information for oversight purposes that
may not be listed in the circular. In addition, if a State includes
projects for both rural areas and small urbanized areas in the POP, the
regional office may need additional information in order to obligate
the funds. Reviewing the POP at the time an applicant submits a grant
application is necessary to allow FTA to check that the requirements of
the Federal Funding Accountability and Transparency Act (FFATA) are met
and that the distribution of resources seems reasonable.
Some commenters recommended that FTA amend its pre-award process to
provide recipients with immediate approval to incur costs and seek
Federal reimbursement for certain categories of projects. In response,
FTA notes that currently, pre-award authority for formula funds is
granted for a period of time consistent with the current authorization
or two fiscal years in advance, whichever is longer. This allows
recipients to expend anticipated resources in advance of the funds
being obligated so long as all Federal requirements have been met. We
believe this level of pre-award authority for Section 5311 funds is
broader than what the commenters recommend.
Some commenters asserted the proposed text for revising POP
submissions in section 5b(3)(c)(1) was vague and recommended it be
revised for clarification. In response, FTA has revised the circular to
include a specific example to assist with interpreting this
requirement. FTA also notes that it is in the process of developing a
new electronic award management system and will continue to consider
ways to streamline the grant process as a part of the new system.
One commenter stated the 15 percent requirement for service that
supports intercity bus has proven impracticable, and that this ``fixed
percentage'' does not allow States and communities to determine the
appropriate mix of public transportation services. The commenter
suggested FTA's ``rigid definition'' of intercity bus makes services
between significant employment, housing, recreational and retail
centers ineligible, even though such services are critical to the
economic vitality of rural communities. Title 49 U.S.C. 5311(f) states
that ``at least'' 15 percent of Section 5311 funds made available to a
State in a fiscal year will be used for the intercity bus
transportation program. This is a floor, not a ceiling, and each State
has discretion regarding whether to expend more than the statutory
minimum of 15 percent for intercity bus. FTA further notes that one
objective of the intercity bus program is to support connections
between rural areas and the larger regional or national system of
intercity bus service. Transportation between employment, housing,
recreational and retail centers may be provided by fixed route, demand-
responsive, or commuter bus service. Please see the discussion of
chapter VIII, below, for additional comments on intercity bus service.
E. Chapter V--Program Management and Administrative Requirements
FTA proposed amendments to this chapter to clarify and update
established requirements for recipients of Federal funds.
In the proposed circular under section 3, Equipment Management, FTA
added statutory language found in 49 U.S.C. 5334(h) related to the
transfer of property. Several commenters sought clarification regarding
the process FTA will use for reviewing the transfer of property
acquired with Section 5311 funds and no longer needed for a public
transportation purpose. In particular, commenters found this to be
inconsistent with the direction given in 49 CFR 18.32, which allows
States to follow their own procedures for use, management, and
disposition of equipment. In response, when equipment has reached the
end of its useful life, States may follow their own procedures.
However, and consistent with FTA's Master Agreement, if a State
withdraws equipment from public transportation service prior to the end
of the equipment's useful life, FTA retains a Federal interest in that
equipment and the State must notify FTA of the withdrawal. FTA has
added language to this section to clarify this requirement.
One commenter, addressing language in section 5, Procurement, asked
if a competitive process must be used before a local governmental
authority may pass through funds to a non-profit organization
subrecipient. A bidding process is not required before a local
governmental authority may pass through Section 5311 funds to a non-
profit organization provided the non-profit would otherwise be eligible
under Section 5311 to receive funds directly from the State as a
subrecipient, and the non-profit uses the funds to pursue its own rural
area transit project.
Two commenters noted that the small purchase threshold was listed
at $150,000 in section 5.a and at $100,000 in section 5.d and asked
which was correct. On December 26, 2013, the Office of Management and
Budget issued final guidance 2 CFR Part 200 ``Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards'' also
[[Page 63667]]
known as the ``Super Circular.'' 78 FR 78590. The guidance, which will
take effect when the U.S. DOT issues new regulations consistent with
the guidance and will supersede and apply in lieu of the common grant
rule (49 CFR parts 18 and 19), will change the simplified acquisition
threshold from $100,000 to $150,000 to match the Federal Acquisition
Regulation. See 2 CFR 200.88. Until U.S. DOT adopts the Super Circular
by regulation, the threshold will remain $100,000. We have edited the
final circular accordingly.
One commenter asserted that the Federal Funding Accountability and
Transparency Act (FFATA) reporting deadlines cannot be met due to
administrative processing delays. The commenter noted that in a
specific instance, five weeks after a grant was pinned (funds
obligated) the grant was not yet in the FFATA database. As a reminder,
the reporting deadline is not contingent on when FTA awards the grant
to the recipient, but when the recipient makes an award to a
subrecipient. FTA does not have the authority to change the reporting
deadline, and advises recipients to report as expeditiously as possible
when there is a delay in having the grant posted to the FFATA database.
F. Chapter VI--State Management Plans
FTA proposed two substantive changes to this chapter. One change
required the State to document the process used to validate the source
of in-kind match for intercity bus transportation when it is used as
the local match. The second change aligned the circular with changes to
49 U.S.C 5310 as amended by MAP-21, which no longer permits Section
5310 funds to be transferred to Section 5311.
FTA did not receive any substantive comments to this chapter. We
have made minor technical corrections. For example, in section 1,
General, we struck a sentence reading, ``A State may be required to
update its SMP if section 5339 funds are transferred to an area with a
population under 50,000.'' In its place, we have added section 5339 to
the list of programs that States must include in their policies and
procedures (i.e., section 5310, 5311, 5316, 5317 and 5339). We also
made a technical correction to the charter language so it is consistent
with the charter rule.
G. Chapter VII--Appalachian Development Public Transportation
Assistance Program
FTA proposed a new chapter for this circular in order to provide
guidance for the Appalachian Development Public Transportation Program
(ADTAP), a new program established by MAP-21. The ADTAP provides funds
to support public transportation service in the Appalachian Region,
which includes all of West Virginia and eligible counties in 12 other
States: Alabama, Georgia, Kentucky, Maryland, Mississippi, New York,
North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and
Virginia.
Two entities commented on this chapter. One commenter asked if
ADTAP funding would be in addition to Section 5311 funds that may be
allocated for a project within an eligible Appalachian county. Funding
for ADTAP projects is a set-aside from available Section 5311 funds and
a separate allocation to States in the Appalachian Region. States
should use ADTAP formula funds for transit projects within the
designated Appalachian region and use other Section 5311 funds to
address needs not covered by the ADTAP allocation.
The other commenter recommended elimination of the ADTAP funding in
its entirety. In response, FTA notes that ADTAP was established by
statute; therefore, FTA will implement the program in accordance with
Section 5311(c)(2). FTA did not make any substantive changes to this
chapter.
H. Chapter VIII--Intercity Bus
FTA proposed two revisions for intercity bus transportation
services to reflect a change and a deadline in the law. FTA noted that
the previous ``Intercity Pilot Match Program,'' which FTA established
in 2007, is now codified under 49 U.S.C. 5311(f) and we requested
comments on the proposed guidance for ``in-kind'' match to implement
the statute. Second, FTA deleted the section on the over-the-road bus
accessibility incentive program, as MAP-21 repealed the program, and we
updated the ADA regulation section of this chapter to reflect the
requirement in 49 CFR 37.185 that as of October 29, 2012, over-the-road
buses (OTRB) that provide fixed route service must be accessible to and
usable by individuals with disabilities, including individuals who use
wheelchairs.
Nearly half of the entities commenting on the circular commented on
this chapter. The majority of commenters disagreed with FTA's proposal
regarding the determination for in-kind match for intercity bus
services. The commenters asserted that FTA's proposal to limit eligible
costs to capital costs was inconsistent with 49 U.S.C. 5311(g)(3)(D).
In response, FTA has revised section 5 of this chapter to reflect that
FTA will allow the eligible net cost to be calculated using one of two
options. FTA funds may only be used to fund the net costs of a project,
so in either option, fare revenue must be subtracted from the total
cost to determine the eligible amount of in-kind match. In the final
circular, FTA maintains the option of using capital cost of contracting
ratios for simplicity in calculating the net costs of the project. In
addition, the final circular further notes that on a case-by-case
basis, if a private operator has excess funds of both unsubsidized
capital and operating costs for providing intercity services, FTA may
allow these funds to count toward the in-kind match. The private
provider must demonstrate that some of the operating costs of the
service are being cross-subsidized by profits elsewhere on its system,
and not fully covered by farebox revenue. The appropriate FTA regional
office will be available to assist a recipient in determining in-kind
match determinations and the documentation required to support a
private operator's cost basis.
One commenter suggested that FTA change the term ``intercity bus
service'' to ``intercity transportation service'' in order to not
``favor connections to one mode over connections to others.'' By
statute, Section 5311(f) addresses the eligibility of ``intercity bus
transportation,'' so FTA declines to make that change. Another
commenter asserted that because the guidance limits the definition of
``intercity bus service'' to service ``that makes meaningful
connections with scheduled intercity bus service to more distant
points, if such service is available,'' that this has been interpreted
as prohibiting the use of these funds for intercity bus service that
connects to the national aviation or intercity passenger rail networks.
In response, FTA notes that the guidance in this chapter does not
prohibit intercity bus feeder service from providing access to
intercity connections with rail or air service. However, FTA believes
that feeder service linkage to the national rail network that is not
linked to small public transportation operators (e.g., through an
intermodal terminal/stop) does not comply with 49 U.S.C. 5311(f). To
clarify the eligibility of connections with rail service when part of
an intermodal terminal, we have amended section 8, Eligible Activities,
to provide that private intercity bus operators may participate in
improvements to existing intercity terminal facilities for rural
passengers, as well as modifications to transit facilities to
facilitate shared use
[[Page 63668]]
by intercity bus, intercity rail, and rural transit operators.
One commenter was encouraged by the definition of ``feeder
service'' but recommended that FTA require or provide incentives to
States for Section 5311 intercity bus service projects that directly
involve rural districts to ensure better and more meaningful access to
intercity bus service. In response, FTA notes that States have
flexibility to administer the program to meet the needs of their rural
regions and districts, so declines to make the suggested change.
Lastly, one commenter read Section 10, ADA Regulations, to mean
that any and all Section 5311(f) over-the-road intercity bus
recipients, subrecipients and contractors must use vehicles that are
fully wheelchair accessible. While that is true of large operators that
are Class I motor carriers providing fixed-route service, the ADA
regulations allow small operators greater flexibility. Small operators
can either ensure that vehicles are readily accessible to and usable by
individuals with disabilities, including individuals who use
wheelchairs, or ensure that equivalent service is provided to
individuals with disabilities. We have amended this section
accordingly.
I. Chapter IX--Rural Transportation Assistance Program (RTAP)
FTA did not propose any substantive changes for this chapter and
did not receive any comments. The RTAP continues to provide funding to
assist in the design and implementation of training and technical
assistance projects, research, and other support services. We did not
make any substantive changes to this chapter.
J. Chapter X--Public Transportation on Indian Reservations
FTA proposed a new chapter in the circular to address public
transportation on Indian reservations, or the ``Tribal Transit
Program.'' Section 5311(c) authorizes $5 million annually for this
program, distributed on a competitive basis; and $25 million annually
for this program, apportioned by a statutory formula found in Section
5311(j). The formula apportions funds on the basis of vehicle revenue
miles and the number of low-income individuals residing on tribal
lands. FTA received comments from six entities regarding this chapter.
Two commenters expressed appreciation for the new formula funding,
while others had concerns about the basis for determining how much
assistance Tribes receive, and expressed concern that they no longer
receive enough Tribal Transit funding to operate their existing
systems.
FTA understands that the transition from a $15 million
discretionary program to a mixed formula and discretionary program has
been challenging for some Tribes, despite the fact that the total
funding level doubled. Generally, the comments FTA received on the
Section 5311 circular were addressed as part of the tribal consultation
process FTA initiated last year. On November 9, 2012, FTA published a
notice in the Federal Register (77 FR 67439) in order to (1) introduce
FTA's consultation process and schedule for implementing changes to the
Tribal Transit Program due to MAP-21; (2) describe and seek comment on
the methodology for the formula allocation and the assumptions made
regarding which Tribes are eligible for the formula program; (3) seek
comment on the terms and conditions for the formula and discretionary
components of the program; and (4) seek comment on how the
discretionary program resources should be allocated. As part of the
tribal consultation process, FTA conducted two outreach meetings in
November and December of 2012. After considering comments, FTA
published a subsequent notice in the Federal Register (78 FR 27284, May
9, 2013) in which it responded to issues presented as a result of the
consultation process. That notice also announced the funding levels and
framework for the Tribal Transit Program, as well as a notice of
funding availability (NOFA) for FY 13 funds. FTA encourages interested
stakeholders to review the two Federal Register notices, available on
FTA's Web site (https://www.fta.dot.gov/legislation_law/federal_register_notices.php) if they have additional concerns about
the funding or framework of this program. FTA has not made any
substantive edits to this chapter.
K. Chapter XI--Other Provisions
This chapter describes cross-cutting Federal requirements that
apply to the Section 5311 Program. FTA did not receive any substantive
comments on this chapter and did not make any substantive edits.
L. Appendices
One commenter requested FTA include additional information related
to the requirements of 49 U.S.C. 5333(b) (labor protections) in
Appendix A. It is not clear to us what additional information would be
helpful, and we recommend that interested stakeholders contact their
FTA regional office if they have questions regarding the role of the
Department of Labor in processing Section 5311 grants.
Another commenter recommended that Appendix B include a POP section
for JARC. In response, we have added language indicating that JARC
projects must be coded under 646-00 SCOPE in the grant and reserved
using FPC 03.
Lastly, one commenter asked for clarification regarding section 3
of Appendix F and the methodology for excess or insufficient in-kind
match determinations for intercity bus. FTA provided additional
clarification in revisions to Chapter VIII, Intercity Bus and
eliminated Appendix F as the information was redundant with the
information contained in the chapter.
Therese W. McMillan,
Acting Administrator.
[FR Doc. 2014-25309 Filed 10-23-14; 8:45 am]
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