FTA Fiscal Year 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act Supplemental Apportionments, Allocations, Program Information and Guidance, 39971-39975 [2020-14249]

Download as PDF Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Notices Issued in Washington, DC. John Karl Alexy, Associate Administrator for Railroad Safety, Chief Safety Officer. [FR Doc. 2020–14274 Filed 7–1–20; 8:45 am] I. Overview This notice provides program information and guidance for implementation of the supplemental fiscal year (FY) 2020 apportionments and allocations appropriated in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. FOR FURTHER INFORMATION CONTACT: For general information about this notice, contact Kimberly Sledge, Deputy Associate Administrator, Office of Program Management, at (202) 366– 2053. Please contact the appropriate FTA Regional Office for any specific requests for information or technical assistance. FTA Regional Office contact information is available on FTA’s website: www.transit.dot.gov. An FTA headquarters contact for each program area is included in this notice. FTA recommends stakeholders subscribe on FTA’s website: www.transit.dot.gov to receive email notifications when new information is available. SUPPLEMENTARY INFORMATION: This document provides notice to stakeholders that FTA is apportioning supplemental Fiscal Year (FY) 2020 Transit Infrastructure Grants (TIG) funding made available by the CARES Act, 2020 (Pub. L. 116–136). In addition, this document contains important information about statutory requirements and policy priorities for the Transit Infrastructure Grants program. FTA previously posted frequently asked questions and apportionment tables identifying funding amounts to States, urbanized areas and tribes on FTA’s website. For the Transit Infrastructure Grants program, this notice provides information on the FY 2020 supplemental appropriations funding levels, funding availability, and the period of availability of funds. A separate section provides information on pre-award authority as well as other requirements applicable to the Transit Infrastructure Grants program and grant administration. Finally, the notice includes a reference to the apportionment tables on FTA’s website that show the amount of funding made available until the funds are expended. Information in this document includes references to existing FTA program guidance and circulars. Some information in FTA’s guidance documents and circulars that were issued prior to passage of the Fixing America’s Surface Transportation (FAST) Act (Pub. L. 114–94) may have been superseded by the FAST Act, but these guidance documents and circulars remain a resource for program management in most areas. Table of Contents II. FY 2020 Funding for FTA Programs I. Overview II. FY 2020 Funding for FTA Programs A. Funding Available Under CARES Act, 2020 B. Oversight Takedown C. CARES Act Apportionments: Data and Methodology III. FY 2020 Program Highlights A. Emergency Relief Docket B. New Eligibilities and Increased Federal Share IV. FY 2020 Program-Specific Information Under CARES Act A. Urbanized Area Formula Program (49 U.S.C. 5307) B. Formula Grants for Rural Areas Program (49 U.S.C. 5311) C. Public Transportation Emergency Relief Program (49 U.S.C. 5324) V. Grant Requirements and Administration A. Automatic Pre-Award Authority To Incur Project Costs A. Funding Available Under the CARES Act BILLING CODE 4910–06–P DEPARTMENT OF TRANSPORTATION Federal Transit Administration FTA Fiscal Year 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act Supplemental Apportionments, Allocations, Program Information and Guidance Federal Transit Administration (FTA), DOT. ACTION: Notice. AGENCY: SUMMARY: khammond on DSKJM1Z7X2PROD with NOTICES B. Federal Requirements C. Insurance and Other Federal Funds D. Grant Application Procedures VerDate Sep<11>2014 21:18 Jul 01, 2020 Jkt 250001 The CARES Act, 2020 (Pub. L. 116– 136) makes $25 billion in supplemental funding available for FTA grantees to prevent, prepare for, and respond to the coronavirus disease 2019 (COVID–19). The CARES Act provides $25 billion in funding from the General Fund, including $22,696,291,664 for Section 5307 Urbanized Area Formula Grants (Urbanized Area Program) and $2,228,708,336 for Section 5311 Formula Grants for Rural Areas (Rural Area Program). Current funding availability for each program is identified in Section IV of this notice and in Table 1 located on FTA’s FY 2020 Apportionment web page: PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 39971 www.transit.dot.gov/funding/ apportionments. B. Oversight Takedown The CARES Act provides that not more than three-quarters of 1 percent, but not to exceed $75 million, of the funds shall be available until expended for administrative expenses and ongoing program management oversight and to generally provide technical assistance and correct deficiencies identified in compliance reviews and audits as authorized under sections 5334 and 5338(f)(2) of title 49, United States Code. C. CARES Act Apportionments: Data and Methodology 1. Apportionment Tables FTA has posted tables displaying the funds available to eligible states, tribes, and urbanized areas to www.transit.dot.gov/funding/ apportionments. This website contains a page with the apportionment tables for the CARES Act, links to prior year formula apportionment notices and tables, and the National Transit Database (NTD) and Census data used to calculate the apportionments. 2. Funding Assignment to Urbanized Area and Rural Area Formula Grant Programs The CARES Act provides for the apportionment of funds via the Urbanized Area formula, the Rural Area formula, the State of Good Repair formula, and the Growing States and High Density States formula factors. The CARES Act also stipulates that the funding apportioned via the formulas be made available under the existing Urbanized Area and Rural Area Formula programs and procedures. Details on the apportionment for both programs are found in the program specific sections below. 3. NTD and Census Data Used in the CARES Act Apportionments Consistent with past practices, the apportionments calculations for Sections 5307, 5311, and 5337 rely on the most-recent transit service data reported to the NTD, which for FY 2020 is the 2018 report year. In some cases, where an apportionment is based on the age of the system, the age is calculated as of September 30, 2019, the last day before FY 2020 began. Recipients or beneficiaries of either Section 5307 or 5311 funds are required to report to the NTD. Additionally, several transit operators report to the FTA’s NTD on a voluntary basis. For the 2018 report year, the NTD includes data from 941 reporters in urbanized areas, 925 of E:\FR\FM\02JYN1.SGM 02JYN1 39972 Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Notices which reported operating transit service. The NTD also includes data from 1,475 providers of rural transit service, which includes 134 Indian Tribes providing transit service. The 2010 Census data is used to determine population and population density for Section 5307 as well as rural population and rural land area for the Section 5311 program. The formulas for Sections 5307, 5311, and 5311(c)(1) include tiers where funding is allocated based on the number of persons living in poverty. The Census Bureau no longer publishes decennial census data on persons living in poverty. As a result, since FY 2013, FTA has used the data for this population available via the Census’ American Community Survey (ACS). The NTD and Census data that FTA used to calculate the apportionments associated with this notice can be found on FTA’s website: www.transit.dot.gov/funding/ apportionments. The FY 2020 CARES Act apportionments use data on low-income persons, persons with disabilities, and older adults from the 2013–2017 ACS five-year data set, which was published in December 2018. This data represents the most recent five-year ACS estimates that are available as of October 1 for the year being apportioned. As was the case in prior years, data on low-income persons comes from ACS Table B17024, ‘‘Age by Ratio of Income to Poverty in the Last Twelve Months.’’ III. FY 2020 Program Highlights khammond on DSKJM1Z7X2PROD with NOTICES A. Emergency Relief Docket Pursuant to 49 CFR 601.42, on January 15, 2020 FTA announced the establishment of an Emergency Relief Docket for calendar year 2020. See https://federalregister.gov/d/2020-00539 for more information. After an emergency or major disaster, if FTA requirements impede a grantee or subgrantee’s ability to respond to the emergency or major disaster, a grantee or subgrantee may submit a request for temporary relief from FTA administrative and statutory requirements. A grantee or subgrantee seeking relief must submit a petition for waiver of FTA requirements at https:// www.regulations.gov for posting in the docket (FTA–2020–0001). FTA encourages grantees, prior to submitting a request to the docket, to review existing requests and responses already posted, as well as FTA’s COVID–19 Frequently Asked Questions web page, at https://www.transit.dot.gov/cares-act. In addition to the docket, FTA has established an email address by which VerDate Sep<11>2014 21:18 Jul 01, 2020 Jkt 250001 grantees may ask questions about FTA requirements: FTAResponse@dot.gov. For additional information on the Emergency Relief Docket, please contact the appropriate FTA Regional Office. B. New Eligibilities and Increased Federal Share Activities eligible under the CARES Act include all activities typically eligible under the Urbanized Area and Rural Area Formula Programs undertaken beginning on January 20, 2020. Funds appropriated through the CARES Act are also available for all funding recipients in large urban, small urban, and rural areas for operating expenses (net fare revenues) in response to the COVID–19 public health emergency as described in Section 319 of the Public Health Service Act, including, beginning on January 20, 2020, reimbursement for operating costs to maintain service, purchase of personal protective equipment, and paying for administrative leave of operations personnel due to reductions in service and quarantining after potential exposure to COVID–19. The Federal share for Transportation Infrastructure Grants is, at the option of the recipient, up to 100 percent for all eligible expenses. Formula (49 U.S.C. 5336), $7,485,374,559 is apportioned according to the State of Good Repair formula (49 U.S.C. 5337), $862,846,477 is apportioned according to the High Density States formula, and $599,348,387 according to the Growing States formula. FTA apportioned funds do not include a take-down for the competitive Passenger Ferry Grant Program or the State Safety Oversight Program. URBANIZED AREA FORMULA PROGRAM 5307 5337 5340 5340 Urbanized Area Formula State of Good Repair ...... High Density States ......... Growing States ................ $13,748,722,241 7,485,374,559 862,846,477 599,348,387 Total Apportioned .................... 22,696,291,664 2. Period of Availability Funds made available under the Urbanized Area Formula Program are available until expended, though FTA encourages recipients to obligate and expend CARES Act funds expeditiously in response to the coronavirus public health emergency. 3. Operating Expenses Under the CARES Act All FTA recipients, including those in urbanized areas of 200,000 or more in IV. FY 2020 Program Specific population, may utilize funds made Information Under CARES Act available under the CARES Act for A. Urbanized Area Formula Program (49 operating expenses incurred to maintain service on or after January 20, 2020. U.S.C. 5307) Such expenses include any operating Funds made available under this expenses (net fare revenues) incurred in notice for the Transit Infrastructure response to the COVID–19 public health Grants program, apportioned through emergency, as well as paying for the Urbanized Area Formula Program, administrative leave for operations provide financial assistance to personnel due to reductions in service. designated recipients in urbanized areas Additionally, such funds may be used to (UZAs) for all projects normally eligible pay for leave for employees who are under the Urbanized Area Formula placed on administrative leave due to program such as capital investments in quarantine or for employees placed on public transportation systems, planning, sick leave due to COVID–19 infection. job access and reverse commute See Chapter IV of the Urbanized Area projects, and operating under limited Formula Program Guidance (FTA circumstances. Under the CARES Act, Circular 9030.1E) for details on eligible funds are available for operating operating assistance activities. Note that service that might otherwise assistance in both large and small urbanized areas. There is no limit on the be characterized as charter service, such as exclusive, closed door transportation amount of CARES funds that may be of children to meal sites, or of homeless spent on operating activities. individuals to shelters, paid for by a For more information about the third party, is eligible for Urbanized Area Formula Program, reimbursement (net payment by a third contact John Bodnar at (202) 366–9091 party) if the service is in direct response or john.bodnar@dot.gov. to COVID–19. For charter operations 1. Funding Availability lasting more than 90 days after the date The CARES Act provides a total of a Governor declared a state of $22,696,291,664 of supplemental FY emergency, the recipient should submit 2020 funding for the Urbanized Area a waiver request to the Emergency Relief Formula program. Of that amount, docket. Recipients are not required to incur $13,748,722,241 is apportioned operating expenses (or preventive according to the Urbanized Area PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\02JYN1.SGM 02JYN1 Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Notices maintenance expenses, which are operating expenses that may be capitalized for the purposes of FTA grants) prior to grant award. A recipient, at its discretion, may use operating expenses submitted, accepted, and published by the NTD for the 2018 report year as justification for its request for operating assistance, along with a description of operations included in the grant. Draw down of funds must reflect actual expenses. There is no limit on the amount of funds made available under the CARES Act that may be used for operating assistance. B. Formula Grants for Rural Areas Program (49 U.S.C. 5311) The Formula Grants for Rural Areas Program provides formula funding to States and Indian tribes for supporting public transportation in areas with a population of less than 50,000. Funding under this notice may be used for all activities typically eligible under the Rural Areas Program, including reimbursement for operating costs to maintain service during the COVID–19 public health emergency, the purchase of personal protective equipment, and paying the administrative leave of operations personnel due to reduction in service. Eligible subrecipients include State and local governmental authorities, Indian Tribes, private nonprofit organizations, and private intercity bus companies. Indian Tribes also are eligible direct recipients under the Formula Grants for Rural Areas Program, both for funds apportioned to the States and for projects apportioned with funds set aside for the Tribal Transit Program. For more information about the Formula Grants for Rural Areas program, contact E´lan Flippin at (202) 366–3800 or elan.flippin@dot.gov. khammond on DSKJM1Z7X2PROD with NOTICES 1. Funding Availability The CARES Act provides a total of $2,178,708,336 of supplemental FY 2020 funding for the Rural Area Formula Program. Of that amount $1,989,462,090 is apportioned according to the Rural Area formula and $239,246,246 is apportioned according to the Growing States formula. Of the amount appropriated, $20 million is made available for the Appalachian Development Public Transportation Assistance Program and $30 million is made available for the Public Transportation on Indian Reservations formula program. FTA-apportioned funds do not include a take-down for the Rural Transit Assistance Program or the Public Transportation on Indian Reservations competitive program. VerDate Sep<11>2014 21:18 Jul 01, 2020 Jkt 250001 GRANTS FOR RURAL AREAS FORMULA PROGRAM 5311 Rural Area Formula ......... 5311(c)(2) Appalachian Development ..................................... 5311(c)(1) Public Transportation on Indian Res ................ 5340 Growing States ................ $1,989,462,090 Total Apportioned .................... 2,178,708,336 (20,000,000) (30,000,000) 239,246,246 2. Period of Availability The Formula Grants for Rural Areas Program funds apportioned in this notice are available until expended, though FTA encourages recipients to obligate and expend CARES Act funds expeditiously in response to the coronavirus public health emergency. 3. Operating Expenses Under the CARES Act All FTA recipients may utilize funds made available under the CARES Act for operating expenses incurred as of January 20, 2020, at a 100 percent Federal share. Such expenses include any expenses incurred in response to the COVID–19 public health emergency, as well as paying for administrative leave for operations personnel due to reductions in service. Additionally, such funds may be used to pay for leave for employees who are placed on administrative leave due to quarantine or for employees on sick leave due to COVID–19 infection. Additional information on eligible operating assistance projects can be found in Chapter III of Formula Grants for Rural Areas: Program Guidance and Application Instructions. Note that service that might otherwise be characterized as charter service, such as exclusive, closed door transportation of children to meal sites, or of homeless individuals to shelters, paid for by a third party, is eligible for reimbursement (net payment by a third party) if the operations are in direct response to COVID–19. For charter operations lasting more than 90 days after the date a Governor declared a state of emergency, the recipient should submit a waiver request to the Emergency Relief docket. Recipients are not required to incur operating expenses (or preventive maintenance expenses, which are operating expenses that may be capitalized for the purposes of FTA grants) prior to grant award. A recipient, at its discretion, may use operating expenses submitted, accepted, and published by the NTD for the 2018 report year as justification for its request for operating assistance, along with a description of operations included in the grant. Draw down of funds must PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 39973 reflect actual expenses. There is no limit on the amount of funds made available under the CARES Act that may be used for operating assistance. States may use methods other than those identified in their State Management Plans to allocate CARES Act funds. 4. Appalachian Development Public Transportation Assistance Program (49 U.S.C. 5311(c)(2)) This program is a take-down under the Formula Grants for Rural Areas Program to provide additional funding to support public transportation in the Appalachian region. There are thirteen eligible States that receive an allocation under this provision. The State allocations are shown in the Formula Grants for Rural Areas Program table posted on FTA’s website at www.transit.dot.gov/funding/ apportionments . A total of $20 million is available until expended through the CARES Act. For more information about the Appalachian Development Public Transportation Assistance Program, contact E´lan Flippin at (202) 366–3800 or elan.flippin@dot.gov. 4. Public Transportation on Indian Reservations Program (49 U.S.C. 5311(c)(1)) The Public Transportation on Indian Reservations Program, or Tribal Transit Program (TTP), is funded as a takedown from funds made available for the Formula Grants for Rural Areas program. Formula factors include vehicle revenue miles and the number of low-income individuals residing on tribal lands (defined as American Indian Areas and Alaska Native Areas). Eligible direct recipients are federally recognized Indian tribes and Alaskan Native Villages providing public transportation in rural areas. The TTP funds are allocated for grants to eligible recipients for any purpose eligible under Formula Grants for Rural Areas program or the CARES Act, which includes capital, operating, planning, and job access and reverse commute projects. Allocations are shown in the Public Transportation on Indian Reservations Formula Program table posted on FTA’s website at www.transit.dot.gov/funding/ apportionments. A total of $30 million is available until expended through the CARES Act. For more information about the Tribal Transit Program, contact Amy Fong at (202) 366–0876 or amy.fong@dot.gov. E:\FR\FM\02JYN1.SGM 02JYN1 39974 Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Notices C. Public Transportation Emergency Relief Program (49 U.S.C. 5324) In addition to the funds appropriated under the CARES Act, on March 13, 2020, FTA announced that all recipients in large urban, small urban, and rural areas that operate in states that have declared a State of Emergency related to COVID–19 may use their existing Urbanized Area and Rural Area Formula funding for both capital and operating expenses related to COVID–19 response at an increased Federal share, as authorized by the Public Transportation Emergency Relief Program (49 U.S.C. 5324). For information on how to use funds previously apportioned under the Urbanized Area and Rural Area Formula programs for COVID–19 response, please visit transit.dot.gov/coronavirus. For more information about the Emergency Relief Program, contact Thomas Wilson at (202) 366–5279 or thomas.wilson@dot.gov. V. Transit Infrastructure Grants A. Automatic Pre-Award Authority To Incur Project Costs Recipients have pre-award authority to incur project costs as of January 20, 2020. Recipients should review the most recent version of FTA’s Apportionments Notice for further guidance on preaward authority. khammond on DSKJM1Z7X2PROD with NOTICES B. Federal Requirements Except as noted otherwise in this notice, all statutory and administrative requirements pertaining to Urbanized Area and Rural Area formula funds apply to grants utilizing funding made available through the CARES Act, including the requirements for Department of Labor certification found in Federal public transportation law (49 U.S.C. 5333(b)). CARES Act funds used to pay for operating expenses in response to COVID–19 do not need to be included in a Transportation Improvement Plan (TIP) and/or Statewide Transportation Improvement Plan (STIP). CARES Act funds used to pay for capital expenses for emergency relief in response to COVID–19 do not need to be included in the TIP and/or STIP unless the projects are for substantial functional, locational, or capacity changes per Federal planning and assistance standards regulations (23 CFR 450.326(e)(5), 23 CFR 450.218(g)(5)). Accordingly, capital projects to prevent, prepare for, and respond to COVID–19 that involve substantial functional, locational, or capacity changes must be included in the TIP and/or STIP. VerDate Sep<11>2014 21:18 Jul 01, 2020 Jkt 250001 C. Insurance and Other Federal Funds FTA funds may not be used to reimburse expenses that have previously been reimbursed by insurance proceeds or other Federal funds. Recipients are required to pursue claims for any losses covered by insurance policies that are also eligible expenses under FTA’s programs. The recipient must report to FTA any insurance proceeds or Federal funds received before or after FTA grant obligation that duplicate any funding received through an FTA grant and make subsequent adjustments to the grant prior to disbursement or return to FTA the amount of funding determined to be duplicative. This includes any proceeds from insurance policies that include applicable business interruption coverage and funding received from the Federal Emergency Management Agency. Any such funds returned to FTA will remain available to the recipient for obligation in another grant for eligible expenses. D. Grant Application Procedures All applications for FTA funds should be submitted to the appropriate FTA Office. All applications must be filed electronically. FTA continues to award and manage grants and cooperative agreements using the Transit Award Management System (TrAMS). To access TrAMS, contact your FTA Office. Resources on using TrAMS can be found on FTA’s website at https:// www.transit.dot.gov/TrAMS. FTA regional staff are responsible for working with grantees to review and process grant applications. For an application to be considered complete and ready for FTA to assign a Federal Award Identification Number (FAIN), enabling submission in TrAMS, and submission to the Department of Labor, when applicable, the following requirements must be met: a. Recipient has registered in the System for Award Management (SAM) and its registration is current with an active status. To register an entity or check the status and renew registration, visit the SAM website at https:// www.sam.gov/SAM/. b. Recipient’s contact information, including Dun and Bradstreet Data Universal Numbering System (DUNS), is correct. To request a DUNS number, call Dun & Bradstreet at 1–866–705–5711 or visit the website at https:// fedgov.dnb.com/webform. c. Recipient has properly submitted its annual certifications and assurances. d. Recipient’s Civil Rights submissions are current. e. After October 1, 2018, the grantee has a Transit Asset Management plan in PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 place that meets the requirements of the Transit Asset Management regulation (49 CFR part 625), or is covered by a compliant Group Plan. f. Documentation is on file to support recipient’s status as either a designated recipient for the program and area or a direct recipient. g. Funding is available, including any flexible funds included in the budget, and split letters or sub allocation letters on file, where applicable, to support the amount requested in the grant application. h. The activity is listed in a currently approved Transportation Improvement Program (TIP); Statewide Transportation Improvement Program (STIP), or Unified Planning Work Program (UPWP) if applicable. i. All eligibility issues are resolved. j. Required environmental findings are made. k. The application contains a welldefined scope of work, including at least one project with accompanying project narratives, at least one budget scope code and one activity line item, Federal and non-Federal funding amounts, and milestones. l. Milestone information is complete. FTA will also review status of other open award reports to confirm financial and milestone information is current on other open awards. Other important issues that impact FTA grant processing activities in addition to the list above are discussed below. a. Award Budgets—Scope Codes and Activity Line Items (ALI) Codes; Financial Purpose Codes FTA uses Scope and ALI Codes in the award budgets to track disbursements, monitor program trends, report to Congress, and to respond to requests from the Inspector General and the Government Accountability Office, as well as to manage grants. The accuracy of the data is dependent on the careful and correct use of codes. b. Designated and Direct Recipients Documentation For its formula programs, FTA primarily apportions funds to the designated recipient in large UZAs (areas over 200,000), or for areas under 200,000 (small UZAs and rural areas), it apportions the funds to the Governor, or its designee (e.g., State DOT). Depending on the program, as described in the individual program sections found in Section IV of this notice, further suballocation of funds may be permitted to eligible recipients who may then apply directly to FTA for the funding as direct recipients. E:\FR\FM\02JYN1.SGM 02JYN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Notices For the programs in which FTA may make grants to eligible direct recipients, other than the designated recipient(s), recipients are reminded that documentation must be on file to support: (1) The status of the recipient either as a designated recipient or direct recipient; and (2) the allocation of funds to the direct recipient. Documentation to support existing designated recipients for the UZA must also be on file at the time of the first application in FY 2020. Split letters and/or suballocation letters (Governor’s Apportionment letters), must also be on file to support grant applications for direct recipients. Split and/or suballocation letters must be updated to include funds apportioned via this notice. Once suballocation letters for FY 2020 funding are finalized, recipients should upload them as part of the application into TrAMS. The Direct Recipient is required to upload to TrAMS a copy of the suballocation letter (Letter) indicating their allocation of funding, for the appropriate fund program, when the applicant transmits their application for initial review. The Letter must be signed by the Designated Recipient, or as applicable in accordance with planning requirements. If there are two Designated Recipients, both entities must sign the Letter. The Letter must: (1) Indicate the allocations to the respective Direct Recipients listed in the letter; (2) incorporate language above the signatories to reflect this agreement; and (3) make clear that the Direct Recipient will assume any/all responsibility associated with the award for the funds. When drafting the Letter, Designated Recipients may use the template language below: ‘‘As identified in this Letter, the Designated Recipient(s) authorize the reassignment/reallocation of [enter fund source; e.g., CARES Act funds] to the Direct Recipient(s) named herein. The undersigned agree to the amounts allocated/reassigned to each Direct Recipient. Each Direct Recipient is responsible for its application to the Federal Transit Administration to receive such funds and assumes the responsibilities associated with any award for these funds.’’ The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. VerDate Sep<11>2014 21:18 Jul 01, 2020 Jkt 250001 Grantees should refer to applicable regulations and statutes referenced in this document. K. Jane Williams, Acting Administrator. [FR Doc. 2020–14249 Filed 7–1–20; 8:45 am] BILLING CODE P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. DOT–NHTSA–2020–0070] Agency Information Collection Activities; Notice and Request for Comment; Automated Vehicle Transparency and Engagement for Safe Testing (AV TEST) Initiative National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Notice and request for comments on a request for approval of a new information collection. AGENCY: The National Highway Traffic Safety Administration (NHTSA) invites public comments about our intention to request approval from the Office of Management and Budget (OMB) for a new information collection. Before a Federal agency can collect certain information from the public, it must receive approval from OMB. Under procedures established by the Paperwork Reduction Act of 1995, before seeking OMB approval, Federal agencies must solicit public comment on proposed collections of information. This document describes a collection of information for NHTSA’s planned Automated Vehicle Transparency and Engagement for Safe Testing (AV TEST) Initiative for which NHTSA intends to seek OMB approval. The AV TEST Initiative involves the voluntary collection of information from entities testing vehicles equipped with automated driving systems (ADS) and from States and local authorities involved in the regulation of ADS testing. The purpose of this collection is to provide information to the public about ADS testing operations in the U.S. and applicable State and local laws, regulations, and guidelines. DATES: Comments must be submitted on or before August 31, 2020. ADDRESSES: You may submit comments identified by the Docket No. DOT– NHTSA–2020–0070 through any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the online instructions for submitting comments. SUMMARY: PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 39975 • Fax: 1–202–493–2251. • Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Room W12–140, Washington, DC 20590, between 9:00 a.m. and 5:00 p.m., Monday through Friday, except on Federal holidays. • Hand Delivery or Courier: West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590–0001 between 9:00 a.m. and 5:00 p.m. ET, Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366–9322 before coming. • Instructions: All submissions must include the agency name and docket number for this proposed collection of information. Note that all comments received will be posted without change to https://www.regulations.gov, including any personal information provided. Please see the Privacy Act heading below. • Privacy Act: Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT’s complete Privacy Act Statement in the Federal Register published on April 11, 2000 (65 FR 19477–78) or you may visit https://www.transportation.gov/privacy. • Docket: For access to the docket to read background documents or comments received, go to https:// www.regulations.gov or the street address listed above. To be sure someone is there to help you, please call (202) 366–9322 before coming. Follow the online instructions for accessing the dockets via internet. FOR FURTHER INFORMATION CONTACT: For additional information or access to background documents, contact Michael Frenchik, Office of Data Acquisition, Safety Systems Management Division (NSA–0130), Room W53–303, 1200 New Jersey Avenue SE, Washington, DC 20590. Mr. Frenchik’s telephone number is (202) 366–0641. SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act of 1995, before an agency submits a proposed collection of information to OMB for approval, it must first publish a document in the Federal Register providing a 60-day comment period and otherwise consult with members of the public and affected agencies concerning each proposed collection of information. The OMB has promulgated regulations describing what must be included in E:\FR\FM\02JYN1.SGM 02JYN1

Agencies

[Federal Register Volume 85, Number 128 (Thursday, July 2, 2020)]
[Notices]
[Pages 39971-39975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14249]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2020 Coronavirus Aid, Relief, and Economic 
Security (CARES) Act Supplemental Apportionments, Allocations, Program 
Information and Guidance

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: This notice provides program information and guidance for 
implementation of the supplemental fiscal year (FY) 2020 apportionments 
and allocations appropriated in the Coronavirus Aid, Relief, and 
Economic Security (CARES) Act.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact Kimberly Sledge, Deputy Associate Administrator, Office 
of Program Management, at (202) 366-2053. Please contact the 
appropriate FTA Regional Office for any specific requests for 
information or technical assistance. FTA Regional Office contact 
information is available on FTA's website: www.transit.dot.gov. An FTA 
headquarters contact for each program area is included in this notice. 
FTA recommends stakeholders subscribe on FTA's website: 
www.transit.dot.gov to receive email notifications when new information 
is available.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview
II. FY 2020 Funding for FTA Programs
    A. Funding Available Under CARES Act, 2020
    B. Oversight Takedown
    C. CARES Act Apportionments: Data and Methodology
III. FY 2020 Program Highlights
    A. Emergency Relief Docket
    B. New Eligibilities and Increased Federal Share
IV. FY 2020 Program-Specific Information Under CARES Act
    A. Urbanized Area Formula Program (49 U.S.C. 5307)
    B. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
    C. Public Transportation Emergency Relief Program (49 U.S.C. 
5324)
V. Grant Requirements and Administration
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Federal Requirements
    C. Insurance and Other Federal Funds
    D. Grant Application Procedures

I. Overview

    This document provides notice to stakeholders that FTA is 
apportioning supplemental Fiscal Year (FY) 2020 Transit Infrastructure 
Grants (TIG) funding made available by the CARES Act, 2020 (Pub. L. 
116-136). In addition, this document contains important information 
about statutory requirements and policy priorities for the Transit 
Infrastructure Grants program. FTA previously posted frequently asked 
questions and apportionment tables identifying funding amounts to 
States, urbanized areas and tribes on FTA's website.
    For the Transit Infrastructure Grants program, this notice provides 
information on the FY 2020 supplemental appropriations funding levels, 
funding availability, and the period of availability of funds. A 
separate section provides information on pre-award authority as well as 
other requirements applicable to the Transit Infrastructure Grants 
program and grant administration. Finally, the notice includes a 
reference to the apportionment tables on FTA's website that show the 
amount of funding made available until the funds are expended.
    Information in this document includes references to existing FTA 
program guidance and circulars. Some information in FTA's guidance 
documents and circulars that were issued prior to passage of the Fixing 
America's Surface Transportation (FAST) Act (Pub. L. 114-94) may have 
been superseded by the FAST Act, but these guidance documents and 
circulars remain a resource for program management in most areas.

II. FY 2020 Funding for FTA Programs

A. Funding Available Under the CARES Act

    The CARES Act, 2020 (Pub. L. 116-136) makes $25 billion in 
supplemental funding available for FTA grantees to prevent, prepare 
for, and respond to the coronavirus disease 2019 (COVID-19). The CARES 
Act provides $25 billion in funding from the General Fund, including 
$22,696,291,664 for Section 5307 Urbanized Area Formula Grants 
(Urbanized Area Program) and $2,228,708,336 for Section 5311 Formula 
Grants for Rural Areas (Rural Area Program). Current funding 
availability for each program is identified in Section IV of this 
notice and in Table 1 located on FTA's FY 2020 Apportionment web page: 
www.transit.dot.gov/funding/apportionments.

B. Oversight Takedown

    The CARES Act provides that not more than three-quarters of 1 
percent, but not to exceed $75 million, of the funds shall be available 
until expended for administrative expenses and ongoing program 
management oversight and to generally provide technical assistance and 
correct deficiencies identified in compliance reviews and audits as 
authorized under sections 5334 and 5338(f)(2) of title 49, United 
States Code.

C. CARES Act Apportionments: Data and Methodology

1. Apportionment Tables
    FTA has posted tables displaying the funds available to eligible 
states, tribes, and urbanized areas to www.transit.dot.gov/funding/apportionments. This website contains a page with the apportionment 
tables for the CARES Act, links to prior year formula apportionment 
notices and tables, and the National Transit Database (NTD) and Census 
data used to calculate the apportionments.
2. Funding Assignment to Urbanized Area and Rural Area Formula Grant 
Programs
    The CARES Act provides for the apportionment of funds via the 
Urbanized Area formula, the Rural Area formula, the State of Good 
Repair formula, and the Growing States and High Density States formula 
factors. The CARES Act also stipulates that the funding apportioned via 
the formulas be made available under the existing Urbanized Area and 
Rural Area Formula programs and procedures. Details on the 
apportionment for both programs are found in the program specific 
sections below.
3. NTD and Census Data Used in the CARES Act Apportionments
    Consistent with past practices, the apportionments calculations for 
Sections 5307, 5311, and 5337 rely on the most-recent transit service 
data reported to the NTD, which for FY 2020 is the 2018 report year. In 
some cases, where an apportionment is based on the age of the system, 
the age is calculated as of September 30, 2019, the last day before FY 
2020 began. Recipients or beneficiaries of either Section 5307 or 5311 
funds are required to report to the NTD. Additionally, several transit 
operators report to the FTA's NTD on a voluntary basis. For the 2018 
report year, the NTD includes data from 941 reporters in urbanized 
areas, 925 of

[[Page 39972]]

which reported operating transit service. The NTD also includes data 
from 1,475 providers of rural transit service, which includes 134 
Indian Tribes providing transit service.
    The 2010 Census data is used to determine population and population 
density for Section 5307 as well as rural population and rural land 
area for the Section 5311 program. The formulas for Sections 5307, 
5311, and 5311(c)(1) include tiers where funding is allocated based on 
the number of persons living in poverty. The Census Bureau no longer 
publishes decennial census data on persons living in poverty. As a 
result, since FY 2013, FTA has used the data for this population 
available via the Census' American Community Survey (ACS). The NTD and 
Census data that FTA used to calculate the apportionments associated 
with this notice can be found on FTA's website: www.transit.dot.gov/funding/apportionments.
    The FY 2020 CARES Act apportionments use data on low-income 
persons, persons with disabilities, and older adults from the 2013-2017 
ACS five-year data set, which was published in December 2018. This data 
represents the most recent five-year ACS estimates that are available 
as of October 1 for the year being apportioned. As was the case in 
prior years, data on low-income persons comes from ACS Table B17024, 
``Age by Ratio of Income to Poverty in the Last Twelve Months.''

III. FY 2020 Program Highlights

A. Emergency Relief Docket

    Pursuant to 49 CFR 601.42, on January 15, 2020 FTA announced the 
establishment of an Emergency Relief Docket for calendar year 2020. See 
https://federalregister.gov/d/2020-00539 for more information. After an 
emergency or major disaster, if FTA requirements impede a grantee or 
subgrantee's ability to respond to the emergency or major disaster, a 
grantee or subgrantee may submit a request for temporary relief from 
FTA administrative and statutory requirements. A grantee or subgrantee 
seeking relief must submit a petition for waiver of FTA requirements at 
https://www.regulations.gov for posting in the docket (FTA-2020-0001). 
FTA encourages grantees, prior to submitting a request to the docket, 
to review existing requests and responses already posted, as well as 
FTA's COVID-19 Frequently Asked Questions web page, at https://www.transit.dot.gov/cares-act. In addition to the docket, FTA has 
established an email address by which grantees may ask questions about 
FTA requirements: [email protected].
    For additional information on the Emergency Relief Docket, please 
contact the appropriate FTA Regional Office.

B. New Eligibilities and Increased Federal Share

    Activities eligible under the CARES Act include all activities 
typically eligible under the Urbanized Area and Rural Area Formula 
Programs undertaken beginning on January 20, 2020. Funds appropriated 
through the CARES Act are also available for all funding recipients in 
large urban, small urban, and rural areas for operating expenses (net 
fare revenues) in response to the COVID-19 public health emergency as 
described in Section 319 of the Public Health Service Act, including, 
beginning on January 20, 2020, reimbursement for operating costs to 
maintain service, purchase of personal protective equipment, and paying 
for administrative leave of operations personnel due to reductions in 
service and quarantining after potential exposure to COVID-19.
    The Federal share for Transportation Infrastructure Grants is, at 
the option of the recipient, up to 100 percent for all eligible 
expenses.

IV. FY 2020 Program Specific Information Under CARES Act

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

    Funds made available under this notice for the Transit 
Infrastructure Grants program, apportioned through the Urbanized Area 
Formula Program, provide financial assistance to designated recipients 
in urbanized areas (UZAs) for all projects normally eligible under the 
Urbanized Area Formula program such as capital investments in public 
transportation systems, planning, job access and reverse commute 
projects, and operating under limited circumstances. Under the CARES 
Act, funds are available for operating assistance in both large and 
small urbanized areas. There is no limit on the amount of CARES funds 
that may be spent on operating activities.
    For more information about the Urbanized Area Formula Program, 
contact John Bodnar at (202) 366-9091 or [email protected].
1. Funding Availability
    The CARES Act provides a total of $22,696,291,664 of supplemental 
FY 2020 funding for the Urbanized Area Formula program. Of that amount, 
$13,748,722,241 is apportioned according to the Urbanized Area Formula 
(49 U.S.C. 5336), $7,485,374,559 is apportioned according to the State 
of Good Repair formula (49 U.S.C. 5337), $862,846,477 is apportioned 
according to the High Density States formula, and $599,348,387 
according to the Growing States formula. FTA apportioned funds do not 
include a take-down for the competitive Passenger Ferry Grant Program 
or the State Safety Oversight Program.

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
5307 Urbanized Area Formula...........................   $13,748,722,241
5337 State of Good Repair.............................     7,485,374,559
5340 High Density States..............................       862,846,477
5340 Growing States...................................       599,348,387
                                                       -----------------
  Total Apportioned...................................    22,696,291,664
------------------------------------------------------------------------

2. Period of Availability
    Funds made available under the Urbanized Area Formula Program are 
available until expended, though FTA encourages recipients to obligate 
and expend CARES Act funds expeditiously in response to the coronavirus 
public health emergency.
3. Operating Expenses Under the CARES Act
    All FTA recipients, including those in urbanized areas of 200,000 
or more in population, may utilize funds made available under the CARES 
Act for operating expenses incurred to maintain service on or after 
January 20, 2020. Such expenses include any operating expenses (net 
fare revenues) incurred in response to the COVID-19 public health 
emergency, as well as paying for administrative leave for operations 
personnel due to reductions in service. Additionally, such funds may be 
used to pay for leave for employees who are placed on administrative 
leave due to quarantine or for employees placed on sick leave due to 
COVID-19 infection. See Chapter IV of the Urbanized Area Formula 
Program Guidance (FTA Circular 9030.1E) for details on eligible 
operating assistance activities.
    Note that service that might otherwise be characterized as charter 
service, such as exclusive, closed door transportation of children to 
meal sites, or of homeless individuals to shelters, paid for by a third 
party, is eligible for reimbursement (net payment by a third party) if 
the service is in direct response to COVID-19. For charter operations 
lasting more than 90 days after the date a Governor declared a state of 
emergency, the recipient should submit a waiver request to the 
Emergency Relief docket.
    Recipients are not required to incur operating expenses (or 
preventive

[[Page 39973]]

maintenance expenses, which are operating expenses that may be 
capitalized for the purposes of FTA grants) prior to grant award. A 
recipient, at its discretion, may use operating expenses submitted, 
accepted, and published by the NTD for the 2018 report year as 
justification for its request for operating assistance, along with a 
description of operations included in the grant. Draw down of funds 
must reflect actual expenses. There is no limit on the amount of funds 
made available under the CARES Act that may be used for operating 
assistance.

B. Formula Grants for Rural Areas Program (49 U.S.C. 5311)

    The Formula Grants for Rural Areas Program provides formula funding 
to States and Indian tribes for supporting public transportation in 
areas with a population of less than 50,000. Funding under this notice 
may be used for all activities typically eligible under the Rural Areas 
Program, including reimbursement for operating costs to maintain 
service during the COVID-19 public health emergency, the purchase of 
personal protective equipment, and paying the administrative leave of 
operations personnel due to reduction in service. Eligible 
subrecipients include State and local governmental authorities, Indian 
Tribes, private non-profit organizations, and private intercity bus 
companies. Indian Tribes also are eligible direct recipients under the 
Formula Grants for Rural Areas Program, both for funds apportioned to 
the States and for projects apportioned with funds set aside for the 
Tribal Transit Program.
    For more information about the Formula Grants for Rural Areas 
program, contact [Eacute]lan Flippin at (202) 366-3800 or 
[email protected].
1. Funding Availability
    The CARES Act provides a total of $2,178,708,336 of supplemental FY 
2020 funding for the Rural Area Formula Program. Of that amount 
$1,989,462,090 is apportioned according to the Rural Area formula and 
$239,246,246 is apportioned according to the Growing States formula. Of 
the amount appropriated, $20 million is made available for the 
Appalachian Development Public Transportation Assistance Program and 
$30 million is made available for the Public Transportation on Indian 
Reservations formula program. FTA-apportioned funds do not include a 
take-down for the Rural Transit Assistance Program or the Public 
Transportation on Indian Reservations competitive program.

                 Grants for Rural Areas Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
5311 Rural Area Formula...............................    $1,989,462,090
5311(c)(2) Appalachian Development....................      (20,000,000)
5311(c)(1) Public Transportation on Indian Res........      (30,000,000)
5340 Growing States...................................       239,246,246
                                                       -----------------
  Total Apportioned...................................     2,178,708,336
------------------------------------------------------------------------

2. Period of Availability
    The Formula Grants for Rural Areas Program funds apportioned in 
this notice are available until expended, though FTA encourages 
recipients to obligate and expend CARES Act funds expeditiously in 
response to the coronavirus public health emergency.
3. Operating Expenses Under the CARES Act
    All FTA recipients may utilize funds made available under the CARES 
Act for operating expenses incurred as of January 20, 2020, at a 100 
percent Federal share. Such expenses include any expenses incurred in 
response to the COVID-19 public health emergency, as well as paying for 
administrative leave for operations personnel due to reductions in 
service. Additionally, such funds may be used to pay for leave for 
employees who are placed on administrative leave due to quarantine or 
for employees on sick leave due to COVID-19 infection. Additional 
information on eligible operating assistance projects can be found in 
Chapter III of Formula Grants for Rural Areas: Program Guidance and 
Application Instructions.
    Note that service that might otherwise be characterized as charter 
service, such as exclusive, closed door transportation of children to 
meal sites, or of homeless individuals to shelters, paid for by a third 
party, is eligible for reimbursement (net payment by a third party) if 
the operations are in direct response to COVID-19. For charter 
operations lasting more than 90 days after the date a Governor declared 
a state of emergency, the recipient should submit a waiver request to 
the Emergency Relief docket.
    Recipients are not required to incur operating expenses (or 
preventive maintenance expenses, which are operating expenses that may 
be capitalized for the purposes of FTA grants) prior to grant award. A 
recipient, at its discretion, may use operating expenses submitted, 
accepted, and published by the NTD for the 2018 report year as 
justification for its request for operating assistance, along with a 
description of operations included in the grant. Draw down of funds 
must reflect actual expenses. There is no limit on the amount of funds 
made available under the CARES Act that may be used for operating 
assistance.
    States may use methods other than those identified in their State 
Management Plans to allocate CARES Act funds.
4. Appalachian Development Public Transportation Assistance Program (49 
U.S.C. 5311(c)(2))
    This program is a take-down under the Formula Grants for Rural 
Areas Program to provide additional funding to support public 
transportation in the Appalachian region. There are thirteen eligible 
States that receive an allocation under this provision. The State 
allocations are shown in the Formula Grants for Rural Areas Program 
table posted on FTA's website at www.transit.dot.gov/funding/apportionments . A total of $20 million is available until expended 
through the CARES Act.
    For more information about the Appalachian Development Public 
Transportation Assistance Program, contact [Eacute]lan Flippin at (202) 
366-3800 or [email protected].
4. Public Transportation on Indian Reservations Program (49 U.S.C. 
5311(c)(1))
    The Public Transportation on Indian Reservations Program, or Tribal 
Transit Program (TTP), is funded as a take-down from funds made 
available for the Formula Grants for Rural Areas program. Formula 
factors include vehicle revenue miles and the number of low-income 
individuals residing on tribal lands (defined as American Indian Areas 
and Alaska Native Areas). Eligible direct recipients are federally 
recognized Indian tribes and Alaskan Native Villages providing public 
transportation in rural areas. The TTP funds are allocated for grants 
to eligible recipients for any purpose eligible under Formula Grants 
for Rural Areas program or the CARES Act, which includes capital, 
operating, planning, and job access and reverse commute projects. 
Allocations are shown in the Public Transportation on Indian 
Reservations Formula Program table posted on FTA's website at 
www.transit.dot.gov/funding/apportionments. A total of $30 million is 
available until expended through the CARES Act.
    For more information about the Tribal Transit Program, contact Amy 
Fong at (202) 366-0876 or [email protected].

[[Page 39974]]

C. Public Transportation Emergency Relief Program (49 U.S.C. 5324)

    In addition to the funds appropriated under the CARES Act, on March 
13, 2020, FTA announced that all recipients in large urban, small 
urban, and rural areas that operate in states that have declared a 
State of Emergency related to COVID-19 may use their existing Urbanized 
Area and Rural Area Formula funding for both capital and operating 
expenses related to COVID-19 response at an increased Federal share, as 
authorized by the Public Transportation Emergency Relief Program (49 
U.S.C. 5324). For information on how to use funds previously 
apportioned under the Urbanized Area and Rural Area Formula programs 
for COVID-19 response, please visit transit.dot.gov/coronavirus.
    For more information about the Emergency Relief Program, contact 
Thomas Wilson at (202) 366-5279 or [email protected].

V. Transit Infrastructure Grants

A. Automatic Pre-Award Authority To Incur Project Costs

    Recipients have pre-award authority to incur project costs as of 
January 20, 2020. Recipients should review the most recent version of 
FTA's Apportionments Notice for further guidance on pre-award 
authority.

B. Federal Requirements

    Except as noted otherwise in this notice, all statutory and 
administrative requirements pertaining to Urbanized Area and Rural Area 
formula funds apply to grants utilizing funding made available through 
the CARES Act, including the requirements for Department of Labor 
certification found in Federal public transportation law (49 U.S.C. 
5333(b)).
    CARES Act funds used to pay for operating expenses in response to 
COVID-19 do not need to be included in a Transportation Improvement 
Plan (TIP) and/or Statewide Transportation Improvement Plan (STIP). 
CARES Act funds used to pay for capital expenses for emergency relief 
in response to COVID-19 do not need to be included in the TIP and/or 
STIP unless the projects are for substantial functional, locational, or 
capacity changes per Federal planning and assistance standards 
regulations (23 CFR 450.326(e)(5), 23 CFR 450.218(g)(5)). Accordingly, 
capital projects to prevent, prepare for, and respond to COVID-19 that 
involve substantial functional, locational, or capacity changes must be 
included in the TIP and/or STIP.

C. Insurance and Other Federal Funds

    FTA funds may not be used to reimburse expenses that have 
previously been reimbursed by insurance proceeds or other Federal 
funds. Recipients are required to pursue claims for any losses covered 
by insurance policies that are also eligible expenses under FTA's 
programs. The recipient must report to FTA any insurance proceeds or 
Federal funds received before or after FTA grant obligation that 
duplicate any funding received through an FTA grant and make subsequent 
adjustments to the grant prior to disbursement or return to FTA the 
amount of funding determined to be duplicative. This includes any 
proceeds from insurance policies that include applicable business 
interruption coverage and funding received from the Federal Emergency 
Management Agency. Any such funds returned to FTA will remain available 
to the recipient for obligation in another grant for eligible expenses.

D. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Office. All applications must be filed electronically. 
FTA continues to award and manage grants and cooperative agreements 
using the Transit Award Management System (TrAMS). To access TrAMS, 
contact your FTA Office. Resources on using TrAMS can be found on FTA's 
website at https://www.transit.dot.gov/TrAMS.
    FTA regional staff are responsible for working with grantees to 
review and process grant applications. For an application to be 
considered complete and ready for FTA to assign a Federal Award 
Identification Number (FAIN), enabling submission in TrAMS, and 
submission to the Department of Labor, when applicable, the following 
requirements must be met:
    a. Recipient has registered in the System for Award Management 
(SAM) and its registration is current with an active status. To 
register an entity or check the status and renew registration, visit 
the SAM website at https://www.sam.gov/SAM/.
    b. Recipient's contact information, including Dun and Bradstreet 
Data Universal Numbering System (DUNS), is correct. To request a DUNS 
number, call Dun & Bradstreet at 1-866-705-5711 or visit the website at 
https://fedgov.dnb.com/webform.
    c. Recipient has properly submitted its annual certifications and 
assurances.
    d. Recipient's Civil Rights submissions are current.
    e. After October 1, 2018, the grantee has a Transit Asset 
Management plan in place that meets the requirements of the Transit 
Asset Management regulation (49 CFR part 625), or is covered by a 
compliant Group Plan.
    f. Documentation is on file to support recipient's status as either 
a designated recipient for the program and area or a direct recipient.
    g. Funding is available, including any flexible funds included in 
the budget, and split letters or sub allocation letters on file, where 
applicable, to support the amount requested in the grant application.
    h. The activity is listed in a currently approved Transportation 
Improvement Program (TIP); Statewide Transportation Improvement Program 
(STIP), or Unified Planning Work Program (UPWP) if applicable.
    i. All eligibility issues are resolved.
    j. Required environmental findings are made.
    k. The application contains a well-defined scope of work, including 
at least one project with accompanying project narratives, at least one 
budget scope code and one activity line item, Federal and non-Federal 
funding amounts, and milestones.
    l. Milestone information is complete. FTA will also review status 
of other open award reports to confirm financial and milestone 
information is current on other open awards.
    Other important issues that impact FTA grant processing activities 
in addition to the list above are discussed below.
a. Award Budgets--Scope Codes and Activity Line Items (ALI) Codes; 
Financial Purpose Codes
    FTA uses Scope and ALI Codes in the award budgets to track 
disbursements, monitor program trends, report to Congress, and to 
respond to requests from the Inspector General and the Government 
Accountability Office, as well as to manage grants. The accuracy of the 
data is dependent on the careful and correct use of codes.
b. Designated and Direct Recipients Documentation
    For its formula programs, FTA primarily apportions funds to the 
designated recipient in large UZAs (areas over 200,000), or for areas 
under 200,000 (small UZAs and rural areas), it apportions the funds to 
the Governor, or its designee (e.g., State DOT). Depending on the 
program, as described in the individual program sections found in 
Section IV of this notice, further suballocation of funds may be 
permitted to eligible recipients who may then apply directly to FTA for 
the funding as direct recipients.

[[Page 39975]]

    For the programs in which FTA may make grants to eligible direct 
recipients, other than the designated recipient(s), recipients are 
reminded that documentation must be on file to support: (1) The status 
of the recipient either as a designated recipient or direct recipient; 
and (2) the allocation of funds to the direct recipient.
    Documentation to support existing designated recipients for the UZA 
must also be on file at the time of the first application in FY 2020. 
Split letters and/or suballocation letters (Governor's Apportionment 
letters), must also be on file to support grant applications for direct 
recipients. Split and/or suballocation letters must be updated to 
include funds apportioned via this notice. Once suballocation letters 
for FY 2020 funding are finalized, recipients should upload them as 
part of the application into TrAMS.
    The Direct Recipient is required to upload to TrAMS a copy of the 
suballocation letter (Letter) indicating their allocation of funding, 
for the appropriate fund program, when the applicant transmits their 
application for initial review. The Letter must be signed by the 
Designated Recipient, or as applicable in accordance with planning 
requirements. If there are two Designated Recipients, both entities 
must sign the Letter. The Letter must: (1) Indicate the allocations to 
the respective Direct Recipients listed in the letter; (2) incorporate 
language above the signatories to reflect this agreement; and (3) make 
clear that the Direct Recipient will assume any/all responsibility 
associated with the award for the funds. When drafting the Letter, 
Designated Recipients may use the template language below:
    ``As identified in this Letter, the Designated Recipient(s) 
authorize the reassignment/reallocation of [enter fund source; e.g., 
CARES Act funds] to the Direct Recipient(s) named herein. The 
undersigned agree to the amounts allocated/reassigned to each Direct 
Recipient. Each Direct Recipient is responsible for its application to 
the Federal Transit Administration to receive such funds and assumes 
the responsibilities associated with any award for these funds.''
    The contents of this document do not have the force and effect of 
law and are not meant to bind the public in any way. This document is 
intended only to provide clarity to the public regarding existing 
requirements under the law or agency policies.
    Grantees should refer to applicable regulations and statutes 
referenced in this document.

K. Jane Williams,
Acting Administrator.
[FR Doc. 2020-14249 Filed 7-1-20; 8:45 am]
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