FTA Fiscal Year 2021 Apportionments, Allocations and Program Information, 38791-38810 [2021-15576]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 86, Number 138 (Thursday, July 22, 2021)]
[Notices]
[Pages 38791-38810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15576]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2021 Apportionments, Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION: Notice.

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SUMMARY: This notice provides priorities for programs in Fiscal Year 
(FY) 2021, announces Coronavirus Response and Relief Supplemental 
Appropriations Act, American Rescue Plan Act, and full-year 
apportionments and allocations for grant programs, provides contract 
authority, and describes plans for several competitive programs.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice, contact John Bodnar, Director of Transit Programs, 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 major program area is included in the discussion of 
that program in the text of 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 2021 Funding for FTA Programs
    A. Funding Available Under the Consolidated Appropriations Act, 
2021
    B. Oversight Takedown
    C. FY 2021 Formula Apportionments: Data and Methodology
III. FY 2021 Program Highlights
    A. Emergency Relief Docket
    B. Policy Priorities
    1. Supporting the Transit Industry COVID-19 Pandemic Response 
and Recovery
    2. Public Transportation Agency Safety Plans
    3. Public Transportation Safety Certification Training Program
    4. Changes to 2 CFR 200
    5. Other Policy Priorities
    C. Implementation and Oversight of CARES, CRRSAA and ARP Funding
    D. FY 2021 Competitive Program Funding
    E. National Defense Authorization Act for FY 2020
    F. Prompt Notification of Knowledge of Potential Fraud, Waste, 
or Abuse Occurring on FTA-Funded Projects
IV. FY 2021 Program-Specific Information
    A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))
    B. State Planning and Research Program (49 U.S.C. 5304 and 
5305(e))
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Fixed Guideway Capital Investment Grants Program (49 U.S.C. 
5309)
    E. Formula Grants for the Enhanced Mobility of Seniors and 
Individuals With Disabilities Program (49 U.S.C. 5310)
    F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
    G. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    H. Appalachian Development Public Transportation Assistance 
Program (49 U.S.C. 5311(c)(2))
    I. Public Transportation on Indian Reservations Program (49 
U.S.C. 5311(c)(1))
    J. Public Transportation Innovation (49 U.S.C. 5312)
    K. Technical Assistance and Workforce Development (49 U.S.C. 
5314)
    L. Public Transportation Emergency Relief Program (49 U.S.C. 
5324)
    M. State Safety Oversight Formula Program (49 U.S.C. 5329)
    N. State of Good Repair Grants Program (49 U.S.C. 5337)
    O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)
    P. Growing States and High-Density States Formula Factors (49 
U.S.C. 5340)
    Q. Washington Metropolitan Area Transit Authority Grants
    R. Coronavirus Response and Recovery Supplemental Appropriations 
Act Transit Infrastructure Grants
    S. American Rescue Plan Act of 2021
V. FY 2021 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2021 Annual List of Certifications and Assurances
    D. Civil Rights Requirements
    E. Consolidated Planning Grants
    F. Grant Application Procedures

I. Overview

    This document provides notice to stakeholders that FTA is 
apportioning the full Fiscal Year (FY) 2021 authorized contract 
authority through September 30, 2021, for FTA formula and competitive 
programs pursuant to Division L of the Consolidated Appropriations Act, 
2021 (Pub. L. 116-260). In addition, Section IV.R of this document 
includes information about supplemental funding provided in Division M 
of the Consolidated Appropriations Act, 2021, also known as the 
Coronavirus Response and Recovery Supplemental Appropriations Act 
(CRRSAA). Section IV.S of this document includes information about the 
American Rescue Plan Act of 2021 (ARP). Important information about FTA 
programs, statutory requirements, and policy priorities is also 
included in this document.
    Division B of the Continuing Appropriations Act, 2021 and Other 
Extensions Act (Pub. L. 116-159), extended the Federal Transit program 
authorization at FY 2020 funding levels. For each FTA program, this 
notice provides information on the FY 2021 authorized 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 FTA programs and grant administration. 
Finally, the notice includes a reference to tables on FTA's website 
that show new contract authority apportioned and made available through 
September 30, 2021.
    Information in this document includes references to existing FTA 
program guidance and circulars. Some information in FTA's guidance 
documents and circulars may have been superseded by provisions in the 
Fixing America's Surface Transportation (FAST) Act (Pub. L. 114-94), 
but these guidance documents and circulars remain a resource for 
program management in most areas.

II. FY 2021 Funding for FTA Programs

A. Funding Available Under the Consolidated Appropriations Act, 2021

    Division L of the Consolidated Appropriations Act, 2021 (Pub. L. 
116-260) makes $12.8 billion in funding available for FTA programs in 
FY 2021. The Consolidated Appropriations Act, 2021, provides $10.15 
billion in funding for FY2021 from the Mass Transit Account of the 
Highway Trust Fund at the amounts authorized under 49 U.S.C. 5338(a), 
as extended for FY 2021 by division B of Continuing Appropriations Act, 
2021 and Other Extensions Act. The Consolidated Appropriations Act, 
2021 also provides $2.537 billion in general fund appropriations, 
including $7.5 million for technical assistance and workforce 
development grants, $2.014 billion for Capital Investment Grants, $150 
million for grants to the Washington Metropolitan Area Transit 
Authority (WMATA), and $516.22 million for transit infrastructure 
grants, which includes: $118 million for the Grants for Buses and Bus 
Facilities Formula Program, $125 million for Buses and Bus Facilities 
competitive grants, $125 million for Low or No Emissions Grants, $40 
million for

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Formula Grants for Rural Areas, $40 million for the Section 5340 High 
Density States Apportionments, $40 million for State of Good Repair 
Grants, $16.22 million for competitive grants in areas of persistent 
poverty, $8 million for Passenger Ferry Grants, of which $4 million is 
for low or no emission ferries, $1 million for the Section 5312 
demonstration and deployment of innovative mobility solutions program, 
$1 million for the Section 5312 accelerating innovative mobility 
initiative, and $2 million for vehicle testing facilities. Current 
funding availability for each program is identified in Section IV of 
this notice and in Table 1 located on FTA's FY 2021 Apportionment web 
page: www.transit.dot.gov/funding/apportionments.

B. Oversight Takedown

    Section 5338(f) of title 49, United States Code (all subsequent 
statutory references are to title 49, United States Code unless 
otherwise noted) provides for the following oversight takedowns of FTA 
programs: 0.5 percent of Metropolitan and Statewide Planning funds, 
0.75 percent of Urbanized Area Formula Grant funds, 1 percent of Fixed 
Guideway Capital Investment Grants funds, 0.5 percent of Formula Grants 
for the Enhanced Mobility of Seniors and Individuals with Disabilities 
funds, 0.5 percent of Formula Grants for Rural Areas funds, 1 percent 
of State of Good Repair Formula Grants funds, 0.75 percent of Grants 
for Buses and Bus Facilities funds, and 1 percent of funds for Capital 
and Preventive Maintenance Projects grants to the Washington 
Metropolitan Area Transit Authority. FTA uses the funds to provide 
necessary oversight activities, such as oversight of the construction 
of any major capital project receiving Federal public transportation 
assistance; conducting reviews and audits of State Safety Oversight, 
drug and alcohol programs, civil rights compliance, procurement 
systems, management, planning certification, and financial management 
reviews and audits; evaluating and analyzing of recipient-specific 
problems and issues; and providing technical assistance to correct 
deficiencies identified in compliance reviews and audits.

C. FY 2021 Formula Apportionments: Data and Methodology

1. Apportionment Tables
    FTA publishes apportionment tables on its website for each program 
that reflect the funding level in the full-year appropriations act less 
oversight take-downs, as applicable. 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 listing the apportionment and allocation tables for FY 2021, links 
to prior year formula apportionment notices and tables, and the 
National Transit Database (NTD) and Census data used to calculate the 
FY 2021 apportionments.
2. National Transit Database (NTD) and Census Data Used in the FY 2021 
Apportionments
    Consistent with past practices, the apportionment calculations for 
Sections 5307, 5311 (including 5311(c)(1)), 5329, 5337, and 5339 rely 
on the most-recent transit service data reported to the NTD, which for 
FY 2021 is the 2019 report year. Where an apportionment is based on the 
age of the system, the age is calculated as of September 30, 2020, the 
last day before FY 2021 began. Recipients of Section 5307 or 5311 funds 
are required to report to the NTD. Additionally, recipients or 
subrecipients of any other FTA program that own, operate, or manage 
assets used in public transportation are required to report asset data 
to the NTD. Further, several transit operators report to the FTA's NTD 
on a voluntary basis. For the 2019 report year, the NTD includes data 
from 935 reporters in urbanized areas, 920 of which reported operating 
transit service. The NTD also includes data from 1,474 providers of 
rural transit service, which includes 125 Indian Tribes providing 
transit service.
    Data based on the 2010 Census are used to determine population and 
population density for Section 5303, 5305, 5307 and 5339 programs, as 
well as population and land area for the 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, and the 
Section 5310 formula program allocates funding based on the population 
of older adults and people with disabilities. The Census Bureau no 
longer publishes decennial census data on persons living in poverty and 
persons with disabilities. As a result, since FY 2013, FTA has used 
data for these populations based on the most-recent five-year estimates 
from the Census Bureau's 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 2021 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2014-2018 ACS five-year 
data set, which was published in December 2019. These data represent 
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 Tables B17024 and 
C17002, ``Age by Ratio of Income to Poverty in the Last Twelve Months'' 
and ``Ratio of Income to Poverty Level in The Past 12 Months'' 
respectively, and data on people with disabilities under 65 years old 
comes from ACS Table S1810, ``Disability Characteristics.'' Data on 
older adults (over 65 years old) comes from ACS Table B01001, ``Sex by 
Age.''
    The Bureau of the Census carried out a decennial census in 2020. 
Data collected during the decennial census impacts the type and amount 
of funding that FTA recipients are eligible to receive. The Bureau of 
the Census is expected to issue a list of Urbanized Areas and 
population statistics based on 2020 Census data in 2022. Changes to an 
area's designation as an urban or rural area will change the grant 
programs for which recipients in that area are eligible. Changes to the 
size and population of an area may mean that the area will receive more 
or less formula funding than it received based on 2010 Census data, or 
may change whether a recipient receives funding directly from FTA or 
indirectly from a pass-through entity. FTA expects to use 2020 Census 
data for the apportionment of FY 2023 funds. The apportionment of funds 
for FY 2022 will continue to be conducted based on Census data and 
eligibilities from the 2010 Census. Funding for FY 2022 and prior years 
will continue to be available to grant recipients based on their 
geographic classification under the 2010 Census for as long as those 
funds remain available, in accordance with the terms and conditions of 
those programs.
    The coronavirus disease 2019 (COVID-19) pandemic has substantially 
impacted transit data reported to the NTD for 2020. Many systems expect 
2020 ridership to be significantly less than 2019 ridership. For the FY 
2022 formula apportionment, FTA will automatically use either all of an 
agency's 2019 data or all of their 2020 data, whichever is higher, 
based on the Vehicle Revenue Miles reported. For the FY 2023 formula 
apportionment, FTA will automatically use either all of an agency's 
2019 data or else all of their 2021 data, whichever is higher, based on 
the Vehicle Revenue Miles reported. An agency does not need to submit a

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disaster waiver request to FTA to receive this benefit as it will be 
automatically applied to every NTD Report. As FTA will use all of a 
particular year's data for the formula apportionment, some individual 
data elements might be higher in the alternative year. In some cases, 
an agency may prefer to use the entire data set from the alternative 
year, in which case you should contact your NTD analyst when filing 
your report. FTA also does not guarantee a positive change in 
apportionment to an Urbanized Area (UZA), State, or Tribal Area from 
the prior year since that depends not only an agency's own data, but 
also on the data reported by all other transit systems, as well as on 
the total amount of appropriations enacted. Recipients should consult 
FTA's COVID-19 FAQs on the FTA website or contact the NTD Help Desk for 
the most-recent information on that policy.

III. FY 2021 Program Highlights

A. Emergency Relief Docket

    Pursuant to 49 CFR 601.42, in January 2021, FTA established an 
Emergency Relief Docket for calendar year 2021. After an emergency or 
major disaster, if FTA requirements impede a recipient's or 
subrecipient's ability to respond to the emergency or major disaster, a 
recipient or subrecipient may submit a request for temporary relief 
from FTA administrative and statutory requirements. A recipient or 
subrecipient seeking relief must submit a petition for waiver of FTA 
requirements at www.regulations.gov for posting in the docket (FTA-
2021-0001). Recipients should discuss a potential request for relief 
with their FTA Regional Office prior to submitting a docket request to 
determine if the request is necessary to receive the desired outcome. 
For additional information on the Emergency Relief Docket, please 
contact the appropriate FTA Regional Office.

B. Policy Priorities

    As FTA implements its programs, it is particularly focused on the 
following policy priority areas in FY 2021:
1. Supporting the Transit Industry COVID-19 Pandemic Response and 
Recovery
    FTA is dedicated to supporting the transit industry's COVID-19 
pandemic response and recovery. FTA will continue to provide guidance, 
identify areas in which administrative and regulatory waivers will 
provide relief to the transit industry, and implement programs 
consistent with the Coronavirus Aid, Relief, and Economic Security 
(CARES) Act, the Coronavirus Response and Relief Supplemental 
Appropriations Act (CRRSAA), 2021, the American Rescue Plan Act of 2021 
(ARP), and any additional supplemental funding that may become 
available. For details, please visit https://www.transit.dot.gov/coronavirus, section IV.R of this notice, Coronavirus Response and 
Recovery Supplemental Appropriations Act Transit Infrastructure Grants, 
and Section IV.S of this notice, American Rescue Plan Act of 2021 
Federal Transit Administration Grants, below.
2. Public Transportation Agency Safety Plans
    The Public Transportation Agency Safety Plan (PTASP) regulation at 
49 CFR part 673 requires certain operators of public transportation 
systems that receive Federal financial assistance under 49 U.S.C. 
Chapter 53 to draft and certify a Public Transportation Agency Safety 
Plan (ASP) by July 20, 2020. On December 11, 2020, FTA issued a Notice 
of Enforcement Discretion to alert transit agencies that FTA will 
refrain from taking enforcement action until July 21, 2021 against any 
FTA recipient or subrecipient subject to the PTASP regulation that is 
unable to certify that it has established an Agency Safety Plan that 
complies with the regulation before that date. This Notice superseded 
the Notice of Enforcement Discretion issued April 22, 2020. During this 
time, the PTASP Technical Assistance Center will remain available to 
meet recipients' PTASP technical assistance needs.
a. Applicability
    The PTASP regulation applies to all operators of public 
transportation systems that are recipients and subrecipients of Federal 
financial assistance under the Urbanized Area Formula Program (49 
U.S.C. 5307) and rail transit agencies that are subject to FTA's State 
Safety Oversight Program. FTA has deferred applicability of part 673 
for operators that receive funds only through FTA's Formula Grants for 
the Enhanced Mobility of Seniors and Individuals with Disabilities 
Program under 49 U.S.C. 5310 and/or Formula Grants for Rural Areas 
Program under 49 U.S.C. 5311. In addition, part 673 does not apply to 
modes of transit service that are subject to the safety jurisdiction of 
another Federal agency, including passenger ferry operations that are 
regulated by the United States Coast Guard and commuter rail operations 
that are regulated by the Federal Railroad Administration.
    States must draft and certify ASPs on behalf of small public 
transportation providers within a State, unless a small provider opts 
to draft and certify its own ASP and notifies the State that it will do 
so. A small public transportation provider is a transit operator that 
meets all of the following requirements:
     Is a recipient or subrecipient of FTA's Urbanized Area 
Formula Program,
     Operates 100 or fewer vehicles in peak revenue service 
across all fixed route modes,
     Operates 100 or fewer vehicles in peak revenue service in 
each non-fixed route mode, and
     Does not operate rail fixed-guideway public 
transportation.
    Regardless of who drafts and certifies an ASP, each transit 
operator is required to carry out and implement its own ASP.
    State Safety Oversight Agencies must review and approve the ASP of 
each rail transit agency that they oversee.
b. Certifications and Assurances
    Applicants for Urbanized Area Formula Program funds, rail transit 
agencies that are subject to FTA's State Safety Oversight Program, and 
States that are required to draft and certify an ASP on behalf of a 
small public transportation provider must certify that they have met 
the requirements of the PTASP regulation no later than July 20, 2021. 
The certification requirement does not apply to any applicant that 
receives financial assistance from FTA exclusively under the Formula 
Grants for the Enhanced Mobility of Seniors Program (49 U.S.C. 5310), 
the Formula Grants for Rural Areas Program (49 U.S.C. 5311), or the 
combination of these two programs.
    On December 11, 2020, FTA issued a second Notice of Enforcement 
Discretion that FTA will refrain from taking enforcement action until 
July 21, 2021, if any FTA recipient or subrecipient is unable to 
certify that it has established a compliant Agency Safety Plan. 
Applicants that receive awards prior to fulfilling their requirements 
under the PTASP regulation will execute all other relevant 
certifications and then execute the PTASP certification after the 
requirements are met, but no later than July 20, 2021. After July 20, 
2021, FTA will not process a grant application without the PTASP 
certification.
    For more information on the requirements, please visit the PTASP 
Technical Assistance Center at https://www.transit.dot.gov/PTASP-TAC.

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3. Public Transportation Safety Certification Training Program
    The Public Transportation Safety Certification Training Program 
(PTSCTP) regulation at 49 CFR part 672 provides minimum training 
requirements for designated personnel. Designated personnel have until 
August 20, 2021, or a later date dependent on designation, to complete 
initial PTSCTP training requirements and must complete refresher 
training every two years thereafter. On December 11, 2020, FTA issued a 
Notice of Enforcement Discretion to alert recipients and designated 
personnel that FTA will refrain from taking enforcement action until 
August 21, 2022, against any FTA recipient subject to the PTSCTP 
regulation that is unable to meet the initial or refresher training 
requirements before that date.
a. Applicability
    The PTSCTP applies to recipients that operate rail transit systems 
that are subject to the FTA State Safety Oversight (SSO) Program (49 
CFR part 674) and their designated personnel, and State Safety 
Oversight Agencies (SSOA) and their designated personnel. Designated 
personnel include SSO employees and contractors who conduct safety 
audits and examinations of rail transit systems and rail transit agency 
employees and contractors who are directly responsible for safety 
oversight of rail transit systems.
b. Certifications and Assurances
    FTA recipients that operate rail transit systems are subject to the 
FTA SSO Program and SSOAs are required to annually certify compliance 
with the PTSCTP regulation.
4. Changes to Title 2, Code of Federal Regulations (2 CFR)
    On August 13, 2020, the Office of Management and Budget (OMB) 
issued updates to multiple Parts of 2 CFR including part 25: Universal 
Identifier and System for Award Management; part 170: Reporting Sub-
award and Executive Compensation Information; a new section, part 183: 
Never Contract with the Enemy; and part 200: the Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards. Many of the changes were made to provide clarity and align with 
other regulations and OMB Circulars; coordinate processes, procedures, 
and reporting requirements; and better identify requirements from best 
practices.
    Two of the provisions, specifically 2 CFR 200.216 and 200.340, took 
effect immediately. Section 200.216 prohibits federal award recipients 
from using government funds to enter into contracts (or extend or renew 
contracts) for certain telecommunications equipment or services, 
including, but not limited to, those produced by Huawei Technologies 
Company or ZTE Corporation (or any subsidiary or affiliate of such 
entities). Section 200.340 describes specific reasons federal awarding 
agencies, pass-through entities, and non-federal entity recipients may 
terminate awards or parts of an award.
    The remainder of the provisions became effective for new awards and 
additional funding applied to existing awards on November 12, 2020. The 
requirements of 2 CFR part 200 are incorporated into FTA awards through 
the Master Agreement and annual Certifications and Assurances. For the 
most part, the changes under 2 CFR part 200 do not substantially change 
administrative requirements, cost principles and audit requirements as 
experienced by FTA recipients.
    Where FTA Circular 5010.1E references the former administrative 
requirements or FTA Program Circulars reference specific requirements 
of 49 CFR parts 18 or 19 (the old Common Rule, since repealed), non-
Federal entities should follow the current rule in 2 CFR parts 200 and 
1201.
    A revision to 2 CFR 200.414 eases conditions for the election of 
the de minimis indirect cost rate. Now, a non-federal entity may elect 
to use the de minimis rate even if the entity previously had a 
negotiated rate. Applicants and recipients should contact their FTA 
Regional Transit Office for assistance.
    Applicants and recipients are reminded of the need to maintain 
current registration in the System for Award Management (SAM) and 
provide requisite or updated information in a timely manner.
    Grant closeout is impacted by changes in 2 CFR 200.344. The 
revision increases from 90 to 120 the number of days that are allowed 
after the end of the period of performance to complete closeout 
requirements, submit required reports, and resolve outstanding 
obligations. The revised 2 CFR 200.344 also specifies that, if a 
recipient does not submit all required reports within a year of the end 
of an award's period of performance, FTA must report the recipient's 
material failure to comply with the terms of the agreement in FAPIIS 
(the governmentwide integrity and performance system).
5. Other Policy Priorities
    FTA will provide additional information on other policy priorities 
in upcoming Notices of Funding Opportunity relating to specific 
competitive grant programs. These priorities will be consistent with 
the objectives of President Biden's Executive Orders, including, but 
not limited to: Executive Order 13985: Advancing Racial Equity and 
Support for Underserved Communities Through the Federal Government; 
Executive Order 13990: Protecting Public Health and the Environment and 
Restoring Science To Tackle the Climate Crisis; Executive Order 14005: 
Ensuring the Future Is Made in All of America by All of America's 
Workers; and Executive Order 14008: Tackling the Climate Crisis at Home 
and Abroad.

C. Implementation and Oversight of CARES, CRRSAA and ARP Funding

    Beginning in FY 2020, and continuing in FY 2021, FTA has made 
nearly $70 billion in supplemental funding available to assist transit 
agencies respond to the COVID-19 pandemic. In addition to providing 
additional financial assistance to transit agencies, the funding made 
available through the Coronavirus Aid, Relief, and Economic Security 
(CARES) Act; the Coronavirus Response and Relief Supplemental 
Appropriations Act (CRRSAA); and American Rescue Plan (ARP) allowed for 
changes in how recipients use FTA funds. This includes allowing all 
recipients, regardless of size or urbanized area population, to charge 
operating expenses to FTA grants at one hundred percent Federal share.
    The total amount of funding provided, the elimination of local 
match requirements, and the expansion of types of expenses (including 
operating expenses) has created a need for additional technical 
assistance and oversight. FTA has developed a new approach to oversight 
of the COVID-19 relief funding that focuses on both technical 
assistance and supplemental oversight. As technical assistance to the 
transit industry, FTA will conduct a series of webinars that will focus 
on helping recipients understand how to calculate and document 
operating expenses in order to charge them to FTA grants.
    In implementing enhanced oversight of COVID-19 relief funds, FTA 
will incorporate specific focus areas under FTA's existing oversight 
program as well as supplemental oversight reviews for recipients not 
scheduled for a Triennial or State Management Review in FY 2021. 
Supplemental oversight will

[[Page 38795]]

entail spot reviews of select recipients to examine expenses charged to 
FTA grants and documentation of those expenses and may include a review 
of the recipient's financial systems. This additional oversight will 
help FTA identify and resolve any issues related to the use of COVID-19 
relief funding at an early stage and ensure the proper management and 
control of the additional funding appropriated to assist transit 
agencies in recovering from the impacts of COVID-19.

D. FY 2021 Competitive Program Funding

    FTA's competitive grant programs and the FY 2021 appropriated 
funding levels are identified in the chart below. FTA selects projects 
for funding after issuance of a Notice of Funding Opportunity (NOFO).

----------------------------------------------------------------------------------------------------------------
                                                                  FY 2021 amount       NOFO        Applications
     FY 2021 competitive programs           Statute 49 U.S.C.          ($M)          published          due
----------------------------------------------------------------------------------------------------------------
Low or No Emission Grants Competitive   5339(c).................         $180.00       2/11/2021       4/12/2021
 Program.
Grants for Buses and Bus Facilities     5339(b).................          409.59             TBD             TBD
 Competitive Program.
Passenger Ferry Grant Program.........  5307(h).................           38.00             TBD             TBD
Tribal Transit........................  5311(c)(1)(A)...........            5.00       5/27/2021       8/25/2021
Integrated Mobility Innovation........  5312....................            1.00             TBD             TBD
Accelerating Innovative Mobility        5312....................            1.00             TBD             TBD
 Challenge Grants.
Transit Workforce Technical Assistance  5314....................            2.50        4/9/2021       5/10/2021
 Center.
Bus Exportable Power Systems..........  5314....................            1.00             TBD             TBD
Discretionary Technical Assistance      5314....................            4.00             TBD             TBD
 Programs.
Areas of Persistent Poverty Grants....  Consolidated                       16.22       6/30/2021       8/30/2021
                                         Appropriations Act,
                                         2021.
Pilot Program for Innovative            FAST Section 3006(b)....            3.50             TBD             TBD
 Coordinated Access and Mobility.
Transit Oriented Development Planning   MAP-21 20005(b).........           10.00       4/21/2021       6/21/2021
 Grants.
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E. National Defense Authorization Act for FY 2020

    Section 7613 of the National Defense Authorization Act for FY 2020 
(NDAA) amended 49 U.S.C. 5323 to add subsections (u) Limitation on 
Certain Rail Rolling Stock Procurements and (v) Cybersecurity 
Certification for Rail Rolling Stock and Operations. FTA issued 
guidance to help transit agencies and transit vehicle manufacturers 
understand and comply with the prohibitions on FTA-funded rolling stock 
procurements. FTA's NDAA Frequently Asked Questions are based on 
inquiries from recipients and transit vehicle manufacturers and can be 
found at https://www.transit.dot.gov/funding/procurement/frequently-asked-questions-regarding-section-7613-national-defense.

F. Prompt Notification of Knowledge of Potential Fraud, Waste, or Abuse 
Occurring on FTA-Funded Project

    Section 39(a)(3) of FTA's Master Agreement includes a requirement 
that a recipient must ``promptly notify'' the U.S. DOT Office of 
Inspector General (OIG), in addition to the FTA Chief Counsel or 
applicable Regional Counsel, when it has knowledge of potential fraud, 
waste, or abuse occurring on an FTA-funded project. ``Knowledge'' 
includes, but is not limited to, knowledge of a criminal or civil 
investigation by a Federal, state, or local law enforcement or other 
investigative agency, a criminal indictment or civil complaint, or 
probable cause that could support a criminal indictment, or any other 
credible information in the possession of any divisions of the 
recipient, including divisions tasked with law enforcement or 
investigatory functions. For example, such knowledge includes when a 
recipient's inspector general, legal counsel, or other responsible 
office begins an investigation involving a project that has received 
financial assistance from FTA, or knowledge by a recipient's inspector 
general, legal counsel, senior management, or executives that such an 
investigation has been initiated by an outside Federal, state, or local 
entity.
    The Master Agreement defines prompt notification as ``to refer 
information without delay and without change.'' Unless a recipient can 
demonstrate extenuating circumstances outside of its control, it should 
notify the U.S. DOT OIG and FTA Chief Counsel or Regional Counsel 
within ten (10) business days of the recipient's receipt of such 
knowledge of potential fraud, waste, or abuse, and this notification 
should include the project(s) at issue that have received FTA financial 
assistance.

IV. FY 2021 Program-Specific Information

A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))

    Section 5305(d) authorizes Federal funding to support a 
cooperative, continuous, and comprehensive planning program for 
transportation investment decision-making at the metropolitan area 
level. The specific requirements of metropolitan transportation 
planning are set forth in 49 U.S.C. 5303 and further explained in 23 
CFR part 450, as incorporated by reference in 49 CFR part 613, Planning 
Assistance and Standards. The State DOTs are the designated recipients 
of Metropolitan Planning Programs (MPP) and State Planning and Research 
Program (SPRP) funds allocated by FTA, which are then sub-allocated to 
Metropolitan Planning Organizations (MPOs) for planning activities that 
support the economic vitality of the metropolitan area. The Secretary 
has the discretion to award MPP and SPRP assistance to States, 
authorities of States, MPOs, and local governmental authorities.
    Each MPO must establish specific performance targets against system 
performance measures issued by FTA and the Federal Highway 
Administration (FHWA) and use these targets in tracking progress 
towards attaining critical outcomes. The MPO must coordinate with 
States and transit providers in setting these targets. MPOs must 
provide a system performance report that evaluates progress in meeting 
the performance targets in comparison with the system performance 
identified in prior reports. MPP funding must support work resulting in 
balanced and comprehensive intermodal transportation planning for the 
movement of people and goods in the metropolitan area. Comprehensive 
transportation planning is not limited to transit planning or surface

[[Page 38796]]

transportation planning, but also encompasses the relationships among 
land use and all transportation modes, without regard to the 
programmatic source of Federal assistance. MPP funds may be used for 
studies relating to management, mobility management, planning, 
operations, capital requirements, economic feasibility, performance-
based planning, safety, and transit asset management. Funds may be used 
to develop or update the metropolitan planning agreements, and to 
evaluate previously funded projects or to conduct peer reviews and 
exchanges of technical data, information, or assistance, among MPOs and 
other transportation planners. Funds may be used for planning for 
multimodal transportation access to transit facilities; system 
planning; scenario planning; corridor-level alternative analysis; 
development of federally required documents, including the Transit 
Asset Management Plan and Public Transportation Agency Safety Plan; 
safety, security and emergency transportation planning; coordinated 
public transit human services transportation planning; transportation 
and air quality planning and conformity analysis; and public 
participation in the transportation planning, including the development 
of the Public Participation Plan. An exhaustive list of eligible work 
activities is provided in FTA Circular 8100.1D, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 10, 2018.
    For more information about the Metropolitan Planning program, 
please contact Victor Austin at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $142,036,417 to carry 
out Section 5305. Of the amounts authorized for Section 5305, 82.72 
percent, or $117,492,524, is made available to the Metropolitan 
Planning Program in FY 2021 to provide financial assistance for 
metropolitan planning needs under Section 5303.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $117,492,524 is 
available to the Metropolitan Planning Program (Section 5305(d)) to 
support metropolitan transportation planning activities set forth in 
Section 5303. The total amount apportioned for the Metropolitan 
Planning Program to States for use by MPOs in urbanized areas (UZAs) is 
$116,952,863 as shown in the table below, after the deduction for 
oversight (authorized by Section 5338) and the addition of 
reapportioned funds.

                      Metropolitan Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................    $117,492,524
Oversight Deduction.....................................       (587,463)
Reapportioned Funds.....................................          47,802
                                                         ---------------
  Total Apportioned.....................................     116,952,863
------------------------------------------------------------------------

3. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2021 plus three additional 
fiscal years. Funds apportioned in FY 2021 must be obligated in grants 
by September 30, 2024. Any FY 2021 apportioned funds that remain 
unobligated at the close of business on September 30, 2024, will revert 
to FTA for reapportionment under the Metropolitan Planning Program.

B. State Planning and Research Program (49 U.S.C. 5304 and 5305(e))

    This program provides financial assistance to States for statewide 
transportation planning and other technical assistance activities, 
including supplementing the technical assistance program provided 
through the Metropolitan Planning Program and planning support for non-
urbanized areas. The specific requirements of Statewide transportation 
planning are set forth in 49 U.S.C. 5304 and further explained in 23 
CFR part 450 as referenced in 49 CFR part 613, Planning Assistance and 
Standards. State DOTs are required to reference performance measures 
and performance targets within the Statewide Planning process. This 
funding must support work resulting in balanced and comprehensive 
intermodal transportation planning for the movement of people and goods 
and has the same eligibilities as MPP funds.
    For more information about the State Planning and Research program, 
please contact Victor Austin at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $24,543,893 in FY 2021 
to provide financial assistance for statewide planning and other 
technical assistance activities under Section 5305. As specified in 
law, this represents the 17.28 percent of the amounts available for 
Section 5305 that are allocated to the Statewide Planning and Research 
program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $24,543,893 is 
available for the State Planning and Research Program (Section 
5305(e)). The total amount apportioned for the State Planning and 
Research Program (SPRP) is $26,189,795 as shown in the table below, 
after the deduction for oversight (authorized by Section 5338) and the 
addition of reapportioned funds.

                Statewide Transportation Planning Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $24,543,893
Oversight Deduction.....................................       (122,719)
Reapportioned Funds.....................................       1,768,621
                                                         ---------------
  Total Apportioned.....................................      26,189,795
------------------------------------------------------------------------
States' apportionments for this program are displayed in Table 2.

3. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2021 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2021 must 
be obligated in grants by September 30, 2024. Any FY 2021 apportioned 
funds that remain unobligated at the close of business on September 30, 
2024 will revert to FTA for reapportionment under the State Planning 
and Research Program.

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

    The Urbanized Area Formula Program provides financial assistance to 
designated recipients in urbanized areas (UZAs) for capital investments 
in public transportation systems, planning, job access and reverse 
commute projects, and, in some cases, operating assistance. FTA 
apportions funds for this program through a statutory formula. Of the 
amount authorized for Section 5307 each year, $30 million is set aside 
for the competitive Passenger Ferry Grant Program (Ferry program), as 
authorized under 49 U.S.C. 5307(h). The Ferry program offers financial 
assistance to public ferry systems in urbanized areas for capital 
projects. Projects are selected annually through a funding competition. 
Additionally, 0.5 percent will be apportioned to eligible States for 
State Safety Oversight (SSO) program grants, and 0.75 percent will be 
set aside for program oversight. Further information on the 0.5 percent 
apportionment to States for the State Safety Oversight Program is 
provided in section IV.M. of this notice.
    For more information about the Urbanized Area Formula Program,

[[Page 38797]]

contact Alexandria Burns at (202) 366-7464 or [email protected].
    For more information about the Ferry program, contact Vanessa 
Williams at (202) 366-4818 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $4,929,452,499 in FY 
2021 to provide financial assistance for urbanized areas under Section 
5307.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $4,929,452,499 is 
available for the Urbanized Area Formula Program. The total amount 
apportioned is $5,375,259,282, which includes the addition of 
reapportioned funds and amounts apportioned to UZAs pursuant to the 
Section 5340 Growing States and High-Density States Formula factors. 
This amount to UZAs excludes the set-aside of $30 million for the Ferry 
program, apportionments under the State Safety Oversight Program, and 
oversight (authorized by Section 5338), as shown in the table below. A 
total of $38 million is available for the Ferry program, consisting of 
the $30 million set-aside noted here, plus an additional $8 million 
appropriated in the Consolidated Appropriations Act, 2021.

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available.................               \a\
                                                          $4,929,452,499
Oversight Deduction...................................      (36,970,894)
State Safety Oversight Program........................      (24,647,262)
Ferry Discretionary Program...........................      (30,000,000)
5340 High Density States..............................       309,364,074
5340 Growing States...................................       214,889,744
Reapportioned Funds...................................        13,171,121
                                                       -----------------
  Total Apportioned...................................     5,375,259,282
------------------------------------------------------------------------
\a\ Includes 1.5 percent set-aside for Small Transit Intensive Cities
  Formula
Table 3 displays the amounts apportioned under the Urbanized Area
  Formula Program.

3. Period of Availability
    Funds made available under the Urbanized Area Formula Program are 
available for obligation during the year of apportionment plus five 
additional years. Accordingly, funds apportioned in FY 2021 must be 
obligated by September 30, 2026. Any FY 2021 apportioned funds that 
remain unobligated at the close of business on September 30, 2026 will 
revert to FTA for reapportionment under the Urbanized Area Formula 
Program.
    Funds allocated under the Ferry program have the same period of 
availability as Section 5307. Accordingly, funds allocated in FY 2021 
must be obligated by September 30, 2026. Any of the funds allocated in 
FY 2021 that remain unobligated at the close of business on September 
30, 2026 will revert to FTA for reallocation under the Ferry program. 
Competitive Ferry program funds are available for obligation during the 
FY in which funds are allocated/awarded to projects plus five 
additional years.

D. Fixed Guideway Capital Investment Grants Program (49 U.S.C. 5309)

    The Capital Investment Grants (CIG) Program includes four types of 
eligible projects: New Starts projects, Small Starts projects, Core 
Capacity Improvement projects, and Programs of Inter-related Projects. 
Funding is provided for construction of: (1) New fixed guideway systems 
or extensions to existing fixed guideway systems such as rapid rail 
(heavy rail), commuter rail, light rail, streetcar, hybrid rail, 
trolleybus (using overhead catenary), cable car, passenger ferries, and 
bus rapid transit operating on an exclusive transit lane for the 
majority of the corridor length during peak periods that also includes 
features that emulate the services provided by rail fixed guideway, 
including defined stations, traffic signal priority for public transit 
vehicles, and short headway bi-directional service for a substantial 
part of weekdays and weekends; (2) corridor-based bus rapid transit 
service that does not operate on an exclusive transit lane but includes 
features that emulate the services provided by rail fixed guideway, 
including defined stations, traffic signal priority for public transit 
vehicles, and short headway bi-directional services for a substantial 
part of weekdays; (3) projects that expand the capacity by at least 10 
percent in an existing fixed guideway corridor that is at capacity 
today or will be in five years; and (4) programs of two or more 
interrelated projects as described above that have logical connectivity 
with one another and will all begin construction in a reasonable 
timeframe. A separate funding program authorized by the FAST Act 
Section 3005(b) allows for an Expedited Project Delivery Pilot Program.
    For more information about the Capital Investment Grants Program 
contact Elizabeth Day, Office of Capital Project Development, at (202) 
366-5159 or [email protected]. For more information about the 
Expedited Project Delivery Pilot Program, contact Mark Ferroni, Office 
of Planning and Environment, at (202) 366-3233 or [email protected]. 
For information about published allocations for both the CIG and EPD 
programs contact Eric Hu, Office of Transit Programs, at (202) 366-0870 
or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $2,301,785,760 in FY 
2021 to provide financial assistance for Capital Investment Grants 
under Section 5309 and Section 3005(b) of the FAST Act.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $2,014,000,000 is 
available for the Capital Investment Grants Program and the FAST Act 
Section 3005(b) Expedited Project Delivery Pilot Program. The funds are 
available to be allocated in the following amounts: $1,169,000,000 for 
New Starts projects; $525,000,000 for Core Capacity projects; 
$200,000,000 for Small Starts projects; $100,000,000 for FAST Act 
Section 3005(b) Expedited Project Delivery Pilot Program projects and 
$20,000,000 for Oversight. The total amount available for projects is 
$1,994,000,000 as shown in the table below, after the deduction for 
oversight (authorized by Section 5338).

                    Capital Investment Grants Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available.................    $2,014,000,000
Oversight Deduction...................................      (20,000,000)
                                                       -----------------
  Total Apportioned...................................     1,994,000,000
------------------------------------------------------------------------

3. Period of Availability
    Capital Investment Grants and Expedited Delivery Pilot program 
funds apportioned in this notice must be obligated in grants by 
September 30, 2024, as stipulated by the Consolidated Appropriations 
Act, 2021.

E. Formula Grants for the Enhanced Mobility of Seniors and Individuals 
With Disabilities Program (49 U.S.C. 5310)

    The Section 5310 Enhanced Mobility of Seniors and Individuals with 
Disabilities Program provides formula funding to States and urbanized 
areas for meeting the transportation needs of older adults and people 
with disabilities when the public transportation service provided is 
unavailable, insufficient, or inappropriate to meet these needs. The 
program aims to improve mobility for seniors and individuals with 
disabilities by removing barriers to transportation service and 
expanding transportation mobility options. The Pilot Program for 
Innovative Coordinated Access and Mobility Program (Pilot Program) was

[[Page 38798]]

established by Section 3006(b) of the FAST Act. The purpose of the 
program is to assist in financing innovative projects for the 
transportation disadvantaged that improve the coordination of 
transportation services and non-emergency medical transportation (NEMT) 
services, including, for example, the deployment of coordination 
technology, and projects that create or increase access to community 
One-Call/One-Click Centers.
    For more information about the Enhanced Mobility of Seniors and 
Individuals with Disabilities Program, please contact Destiny Buchanan 
at (202) 493-8018 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $285,574,688 in FY 
2021 to provide formula funding to designated recipients and States for 
meeting the transportation needs of older adults and people with 
disabilities. The law also authorizes $3.5 million for the competitive 
Innovative Coordinated Access and Mobility Pilot Program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $285,574,688 is 
available for the Section 5310 formula program. The total amount 
apportioned is $292,921,581 after the oversight deduction and the 
addition of reapportioned funds as shown in the table below. A total of 
$3,500,000 is available for the competitive Pilot Program.

Formula Grants for the Enhanced Mobility of Seniors and Individuals With
                          Disabilities Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................    $285,574,688
Oversight Deduction.....................................     (1,427,873)
Reapportioned Funds.....................................       8,744,766
                                                         ---------------
  Total Apportioned.....................................     292,921,581
------------------------------------------------------------------------

3. Period of Availability
    The Enhanced Mobility of Seniors and Individuals with Disabilities 
program funds apportioned in this notice are available for obligation 
during FY 2021 plus two additional fiscal years. Accordingly, funds 
apportioned in FY 2021 must be obligated in grants by September 30, 
2023. Any FY 2021 apportioned funds that remain unobligated at the 
close of business on September 30, 2023, will revert to FTA for 
reapportionment among the States and urbanized areas.

F. 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 to support public transportation in areas 
with a population of less than 50,000. Funding may be used for capital, 
operating, planning, job access and reverse commute projects, and State 
administration expenses. Eligible subrecipients include State and local 
governmental authorities, Indian Tribes, private non-profit 
organizations, and private intercity bus companies. Indian Tribes are 
also eligible direct recipients under the Formula Grants for Rural 
Areas Program, both for funds apportioned to the States and for 
projects apportioned or competitively selected to be funded with funds 
set aside from the Tribal Transit Program.
    For more information about the Formula Grants for Rural Areas 
Program, please contact Elan Flippin at (202) 366-3800 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $673,299,658 for FY 
2021 to provide financial assistance for rural areas under the Formula 
Grants for Rural Areas Program. This amount includes $35 million for 
the Tribal Transit Program; $20 million for the Appalachian Program; 
$13,465,993 for the Rural Transit Assistance Program; and $604,833,665 
for the Rural Formula Program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $644,033,664 is 
available for the Rural Area Formula Program, including an additional 
$40 million from the transit infrastructure grants appropriation. The 
total amount apportioned to the program is $728,734,295 as shown in the 
table below, after the addition of reapportioned funds, the addition of 
Section 5340(c) Growing States funds, and the oversight deduction 
authorized by Section 5338.

                 Grants for Rural Areas Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................    $644,033,664
Oversight Deduction.....................................     (3,566,498)
5340 Growing States.....................................      85,779,099
Reapportioned Funds.....................................       2,488,030
                                                         ---------------
  Total Apportioned.....................................     728,734,295
------------------------------------------------------------------------

3. Period of Availability
    The Formula Grants for Rural Areas program funds apportioned in 
this notice are available for obligation during FY 2021 plus two 
additional fiscal years. Accordingly, funds apportioned in FY 2021 must 
be obligated in grants by September 30, 2023. Any FY 2021 apportioned 
funds that remain unobligated at the close of business on September 30, 
2023, will revert to FTA for reapportionment under the Formula Grants 
for Rural Areas Program.

G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(3))

    This program provides funding to assist in the design and 
implementation of training and technical assistance projects, research, 
and other support services tailored to meet the needs of transit 
operators in rural areas.
    For more information about Rural Transportation Assistance Program 
(RTAP), please contact Elan Flippin at (202) 366-3800 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorized $13,465,993, or two 
percent of the funds made available for the Formula Grants for Rural 
Areas Program, to be made available for the Rural Transportation 
Assistance Program (RTAP). Of the two percent takedown, 15 percent is 
reserved for the National Rural Transit Assistance Program (NRTAP). The 
remainder is available for allocation to the States.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $14,265,993 is 
available for the RTAP. The total amount apportioned for RTAP is 
$12,126,094 as shown in the table below, after the deduction for NRTAP.

             Rural Transportation Assistance Program (RTAP)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $14,265,993
National RTAP...........................................     (2,139,899)
                                                         ---------------
  Total Apportioned.....................................      12,126,094
------------------------------------------------------------------------

3. Period of Availability
    The RTAP funds apportioned in this notice are available for 
obligation during FY 2021 plus two additional fiscal years. 
Accordingly, funds apportioned in FY 2021 must be obligated in grants 
by September 30, 2023.

H. 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

[[Page 38799]]

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 on 
the FY 2021 Apportionments page.
    For more information about the Appalachian Development Public 
Transportation Assistance Program, please contact Elan Flippin at (202) 
366-3800 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $20 million in FY 2021 
as a take-down under the Formula Grants for Rural Areas program to 
support public transportation in the Appalachian region.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $20 million is 
available.

    Appalachian Development Public Transportation Assistance Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $20,000,000
                                                         ---------------
  Total Apportioned.....................................      20,000,000
------------------------------------------------------------------------

3. Period of Availability
    The Appalachian program funds apportioned in this notice are 
available for obligation during FY 2021 plus two additional fiscal 
years, consistent with that established for the Formula Grants for 
Rural Areas Program. Accordingly, funds apportioned in FY 2021 must be 
obligated in grants by September 30, 2023.

I. 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), totals $35 million, of which $30 million is for 
a formula program and $5 million is for a competitive grant program. It 
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, which includes 
capital, operating, planning, and job access and reverse commute 
projects.
    For more information about the Tribal Transit Program, contact 
Destiny Buchanan at (202) 493-8018 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $35 million in FY 2021 
to provide assistance to tribes through the Public Transportation on 
Indian Reservations formula and competitive programs.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $30 million is 
available for the formula program and $5 million for the competitive 
program. The total apportioned for the formula program is $30,766,775 
after the addition of reapportioned funds.

   Public Transportation on Indian Reservations Program Formula Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $30,000,000
Reapportioned Funds.....................................         766,775
                                                         ---------------
  Total Apportioned.....................................      30,766,775
------------------------------------------------------------------------


 Public Transportation on Indian Reservations Program Competitive Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................      $5,000,000
                                                         ---------------
  Total Apportioned.....................................       5,000,000
------------------------------------------------------------------------

3. Period of Availability
    The TTP formula program funds apportioned in this notice are 
available for obligation during FY 2021 plus two additional fiscal 
years. Accordingly, funds apportioned in FY 2021 must be obligated in 
grants by September 30, 2023. Any FY 2021 apportioned funds that remain 
unobligated at the close of business on September 30, 2023, will revert 
to FTA for reapportionment under the TTP formula program. Competitive 
TTP funds are available for obligation during the FY in which funds are 
awarded to projects plus two additional years.

J. Public Transportation Innovation (49 U.S.C. 5312)

    Public Transportation Innovation is FTA's research program with the 
overarching statutory goal to improve public transportation. The law 
specifies research focus areas, including providing more effective and 
efficient public transportation service; mobility management; system 
capacity; advanced vehicle design; asset maintenance; construction and 
project management; environment and energy efficiency; and safety 
improvements. FTA may make grants, enter into contracts, cooperative 
agreements, and other agreements to carry out research, innovative 
development, demonstration, and deployment projects, and evaluation and 
research projects of national significance to public transportation.
    Within this section are three distinct programs: (a) A Research, 
Development, Demonstration, Deployment, and Evaluation program (49 
U.S.C. 5312(b)-(e)); (b) a Low or No Emission Vehicle Component 
Assessment Program (LoNo-CAP) (49 U.S.C. 5312(h)); and (c) a Transit 
Cooperative Research Program (49 U.S.C. 5312(i)). Eligible recipients 
can be departments, agencies, and governmental agencies, including 
Federal laboratories; State and local entities; providers of public 
transportation; private or non-profit organizations; institutions of 
higher education; and technical community colleges. Each program area 
has specific requirements relating to the type of organization that may 
receive a grant or enter an agreement.
    The types of research eligible for funding are broad and include: 
Opportunities to enhance public transportation operational 
effectiveness and efficiency; improve services; leverage new types of 
vehicle technologies; utilize transformative technologies to improve 
public transportation; field new mobility models; and support increased 
safety.
    In FY 2021, there are two additional provisions to further 
innovative mobility. The first is for the demonstration and deployment 
of innovative mobility solutions for the development of software to 
facilitate the provision of demand-response public transportation 
service that dispatches public transportation fleet vehicles through 
riders' mobile devices or other advanced means. Any software developed 
as part of this project will be shared for use by public transportation 
agencies. The second provision provides funding for a competitive 
accelerating innovative mobility initiative that will improve mobility 
and enhance the rider experience with a focus on innovative service 
delivery models, creative financing, novel partnerships, and integrated 
payment solutions.
    For more information about the Public Transportation Innovation 
Program (Sections 5312(b)-(e) and 5312(i)), please contact Adrianne 
Malasky, Office

[[Page 38800]]

of Research, Demonstration and Innovation at (202) 366-5496 or 
[email protected].
    For more information about the LoNo-CAP program (Section 5312(h)), 
please contact Terrell Williams at (202) 366-0232 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $30 million in FY 2021 
funding for the Public Transportation Innovation Program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $30 million is 
available for the Public Transportation Innovation Program. The total 
amounts apportioned to each subcomponent of the program is shown below 
in the table.

                Public Transportation Innovation Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Research, Development, Demonstration, Deployment, &          $20,000,000
 Evaluation Innovative Mobility Solution................
Discretionary Projects Innovative Mobility Solutions....       1,000,000
Accelerating Innovative Mobility Initiative.............       1,000,000
Low or No Emission Vehicle Component Testing............       3,000,000
Transit Cooperative Research Program (TCRP).............       5,000,000
                                                         ---------------
    Total Apportioned...................................      30,000,000
------------------------------------------------------------------------

3. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
each project. If the funds are not obligated within that time, they 
revert to FTA for reallocation under the program.

K. Technical Assistance and Workforce Development (49 U.S.C. 5314)

1. Authorized Amounts
    FTA's Technical Assistance and Workforce Development Program has 
the overarching goals to provide public transportation service more 
effectively and efficiently; and improve public transportation. Within 
this section, there are four different types of programs: Technical 
assistance; standards; training; and human resources. The National 
Transit Institute (NTI) is funded under this section (49 U.S.C. 
5314(c)) to develop and conduct training and educational programs for 
Federal, State, and local transportation employees, United States 
citizens, and foreign nationals engaged or to be engaged in Government-
aid public transportation work.
    For FY 2021, Congress has directed $2.5 million for a Transit 
Workforce Development Technical Assistance Center, and $1.5 million for 
a technical assistance center to assist small urban, rural, and tribal 
public transit recipients and planning organizations with applied 
innovation and capacity building.
2. FY 2021 Funding Availability
    In FY 2021 under the Consolidated Appropriations Act, 2021, $16.5 
million is available for the Technical Assistance and Workforce 
Development program, as shown in the table below. Of the available 
amounts, $5 million is available for NTI.

             Technical Assistance and Workforce Development
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $16,500,000
                                                         ---------------
  Total Apportioned.....................................      16,500,000
------------------------------------------------------------------------

3. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
each project. If the funds are not obligated within that time, they 
revert to FTA for reallocation under the program.
    For more information about the Technical Assistance and Workforce 
Program, contact Adrianne Malasky, Office of Research, Demonstration 
and Innovation at (202) 366-5496 or [email protected].

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

    The Public Transportation Emergency Relief Program (49 U.S.C. 5324) 
assists transit providers with the costs of responding to, recovering 
from, and preparing for natural disasters. This program does not 
receive an annual appropriation, and funds that are periodically 
appropriated by Congress are typically made available through a 
discretionary grant process.
    For more information about the Emergency Relief Program, please 
contact Thomas Wilson at (202) 366-5279 or [email protected].

M. State Safety Oversight Formula Program (49 U.S.C. 5329)

    The State Safety Oversight Formula Program provides funding to 
support States with rail fixed guideway public transportation systems 
(rail transit systems) to develop and carry out State Safety Oversight 
(SSO) Programs consistent with the requirements of 49 U.S.C. 5329.
    For more information about the State Safety Oversight Program, 
please contact Patrick Nemons at (202) 366-4986 or 
[email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $24,647,262 in FY 2021 
to provide funding to support States in developing and carrying out the 
SSO Program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $28,928,494 is 
available for the State Safety Oversight (SSO) Formula program, 
including reapportioned funds, as shown in the table below.

                 State Safety Oversight Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................     $24,647,262
Reapportioned Funds.....................................       4,281,232
                                                         ---------------
  Total Apportioned.....................................      28,928,494
------------------------------------------------------------------------

3. Period of Availability
    SSO Formula Grant program funds are available for the year of 
apportionment plus, two additional years. Any FY 2021 funds that remain 
unobligated at the close of business on September 30, 2023, will revert 
to FTA for reapportionment under the SSO Formula Grant Program.

N. State of Good Repair Grants Program (49 U.S.C. 5337)

    The State of Good Repair Program provides financial assistance to 
designated recipients in Urbanized Areas (UZAs) with fixed guideway and 
high-intensity motorbus systems for capital investments that maintain, 
rehabilitate, and replace aging transit assets and bring fixed guideway 
and

[[Page 38801]]

high intensity motorbus systems into a state of good repair. FTA 
apportions funds for this program through a statutory formula using 
data reported to the National Transit Database (NTD).
    For more information about the State of Good Repair Program, please 
contact Eric Hu at (202) 366-0870 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $2,683,798,369 in FY 
2021 for the State of Good Repair Program.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $2,723,798,369 is 
available for the State of Good Repair Program, including an additional 
$40 million from the Transit Infrastructure Grants appropriation. The 
total amount apportioned is $2,709,868,483 after the deduction for 
oversight and the addition of reapportioned funds as shown in the table 
below. Of the total amount apportioned, $2,632,637,232 is apportioned 
to the High Intensity Fixed Guideway Formula and $77,231,252 is 
apportioned to the High Intensity Motorbus Formula.

                   State of Good Repair Grants Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available................     $2,723,798,369
Oversight Deduction..................................       (27,237,984)
Reapportioned Funds..................................         13,308,098
                                                      ------------------
  Total Apportioned..................................      2,709,868,483
------------------------------------------------------------------------


                   State of Good Repair Grants Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
High Intensity Fixed Guideway Formula................     $2,632,637,232
High Intensity Motorbus Formula......................         77,231,252
                                                      ------------------
  Total Apportioned..................................      2,709,868,483
------------------------------------------------------------------------

3. Period of Availability
    The State of Good Repair program funds apportioned in this notice 
are available for obligation during FY 2021 plus three additional 
years. Accordingly, funds apportioned in FY 2021 must be obligated in 
grants by September 30, 2024. Any FY 2021 apportioned funds that remain 
unobligated at the close of business on September 30, 2024, will revert 
to FTA for reappointment under the State of Good Repair Program.

O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)

    The Grants for Buses and Bus Facilities Program provides financial 
assistance to States, local governmental entities that operate fixed 
route bus service, and designated recipients for capital investments in 
public transportation systems to replace, rehabilitate, lease, and 
purchase buses and related equipment and to construct bus-related 
facilities, including technological changes or innovations to modify 
low or no emission vehicles or facilities. Funding is provided through 
Section 5339(a) formula allocations, Section 5339(b) competitive 
grants, and Section 5339(c) competitive low or no emission grants.
    For more information about the Grants for Buses and Bus Facilities 
Formula Program, please contact Alexandria Burns at (202) 366-7464 or 
[email protected]. For more information about the competitive 
Low or No Emissions Grant Program, please contact Amy Volz at (202) 
366-7484 or [email protected]. For more information about the Grants for 
Buses and Bus Facilities Competitive Program please contact Thomas 
Wilson at (202) 366-5279 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $808,653,915 in FY 
2021 to provide financial assistance for Grants for Buses and Bus 
Facilities. Of this amount, $464,609,736 is authorized for the Grants 
for Buses and Bus Facilities Formula program and $344,044,179 for the 
Grants for Buses and Bus Facilities Competitive program, of which $55 
million is available for the Low or No Emissions program.
2. Funding Availability
    Under the Consolidated Appropriations Act, 2021, $1,176,653,915 is 
available for Grants for Buses and Bus Facilities. Of this amount: 
$592,868,755 is available for the Grants for Buses and Bus Facilities 
Formula Program after the deduction for oversight and the addition of 
reapportioned funds; $409,588,848 is available for the Grants for Buses 
and Bus Facilities Competitive Program after the takedown for 
oversight; and $180 million is available for the Low or No Emission 
Grants Program. These amounts are detailed in the table below.

               Formula Grants for Buses and Bus Facilities
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available.................      $582,609,736
Oversight Deduction...................................       (4,369,573)
Reapportioned Funds...................................        14,628,592
                                                       -----------------
    Total Apportioned.................................       592,868,755
------------------------------------------------------------------------
             Competitive Grants for Buses and Bus Facilities
------------------------------------------------------------------------
Total FY 2021 Appropriation Available.................       594,044,179
Oversight Deduction...................................       (4,455,331)
Less Section 5339(c) Low or No Emission Grants             (180,000,000)
 (Competitive)........................................
                                                       -----------------
    Total Apportioned.................................       409,588,848
------------------------------------------------------------------------
         Section 5339(c) Low or No Emission Grants (Competitive)
------------------------------------------------------------------------
Total FY 2021 Appropriation Available.................       180,000,000
                                                       -----------------
    Total Apportioned.................................       180,000,000
------------------------------------------------------------------------

3. Period of Availability
    The Buses and Bus Facilities program formula funds apportioned in 
this notice are available for obligation during FY 2021 plus three 
additional years. Accordingly, funds apportioned in FY 2021 must be 
obligated in grants by September 30, 2024. Any FY 2021 apportioned 
funds that remain

[[Page 38802]]

unobligated at the close of business on September 30, 2024, will revert 
to FTA for reapportionment under the Buses and Bus Facilities Formula 
Program. Competitive Section 5339(b) and 5339(c) funds are available 
for obligation during the FY in which funds are allocated to projects 
plus three additional years.

P. Growing States and High-Density States Formula Factors (49 U.S.C. 
5340)

    Federal public transportation law authorizes the use of formula 
factors to distribute additional funds to the Section 5307 Urbanized 
Area Formula program and Section 5311 Formula Grants for Rural Areas 
program for growing States and high-density States. FTA will continue 
to publish single urbanized and rural apportionments that show the 
total amount for Section 5307 and 5311 programs that includes Section 
5340 apportionments for these programs.
    For more information about this program, please contact Alexandria 
Burns at (202) 366-7464 or [email protected].
1. Authorized Amounts
    Federal public transportation law authorizes $570,032,917 for 
apportionment in FY 2021 for the Growing States and High-Density States 
Formula factors.
2. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $610,032,917, 
including an additional $40 million from the transit infrastructure 
grants appropriation, is available for the Growing States and High-
Density States formula.

         Growing States and High-Density States Formula Factors
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Growing States..........................................    $300,668,843
High-Density States.....................................     309,364,074
                                                         ---------------
  Total Apportioned.....................................     610,032,917
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Under the Growing States portion of the Section 5340 formula, FTA 
projects each State's 2025 population by comparing each State's 
apportionment year population (as determined by the Census Bureau) to 
the State's 2010 Census population and extrapolating to 2025 based on 
each State's rate of population growth between 2010 and the 
apportionment year. Each State receives a share of Growing States funds 
based on its projected 2025 population relative to the nationwide 
projected 2025 population.
    Once each State's share is calculated, funds attributable to that 
State are divided into an urbanized area allocation and a non-urbanized 
area allocation based on the percentage of each State's 2010 Census 
population that resides in urbanized and non-urbanized areas. Urbanized 
Areas receive portions of their State's urbanized area allocation based 
on the 2010 Census population in that urbanized area relative to the 
total 2010 Census population in all urbanized areas in the State. These 
amounts are added to the Urbanized Area's Section 5307 apportionment. 
The States' rural area allocation is added to the allocation that each 
State receives under the Formula Grants for Rural Areas Program.
    The High-Density States portion of the Section 5340 formula are 
allocated to urbanized areas in States with a population density equal 
to or greater than 370 persons per square mile. Based on this threshold 
and 2010 Census data, the States that qualify are Maryland, Delaware, 
Massachusetts, Connecticut, Rhode Island, New York, and New Jersey. The 
amount of funds provided to each of these seven States is allocated 
based on the population density of the individual State relative to the 
population density of all seven States. Once funds are allocated to 
each State, funds are then allocated to urbanized areas within the 
States based on an individual urbanized area's population relative to 
the population of all urbanized areas in that State.

Q. Washington Metropolitan Area Transit Authority Grants

    The Consolidated Appropriations Act, 2021 provides funding for 
Washington Metropolitan Area Transit Authority (WMATA) in the amount of 
$150 million for the agency's Capital Improvement Program and 
preventive maintenance projects. This funding is administered as if it 
were provided under section 601 of the Passenger Rail Investment and 
Improvement Act of 2008.
    For more information about the Washington Metropolitan Area Transit 
Authority Grants Program, please contact Eric Hu, Office of Transit 
Programs, at (202) 366-0870 or [email protected], Daniel Koenig, Region 
III Office, at (202) 366-8224 or [email protected], or Kelly 
Tyler, Region III Office, at (202) 366-3267 or [email protected].
1. FY 2021 Funding Availability
    Under the Consolidated Appropriations Act, 2021, $150 million is 
available. The total amount available is $148.5 million after the 
deduction for oversight as shown in the table below.

          Washington Metropolitan Area Transit Authority Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total FY 2021 Appropriation Available...................    $150,000,000
Oversight Deduction.....................................     (1,500,000)
                                                         ---------------
    Total Apportioned...................................     148,500,000
------------------------------------------------------------------------

2. Period of Availability
    Funds appropriated for WMATA under the Consolidated Appropriations 
Act, 2021 shall remain available until expended.

R. Coronavirus Response and Recovery Supplemental Appropriations Act 
Transit Infrastructure Grants

1. Funding Availability
    Division M of the Consolidated Appropriations Act, 2021 (Pub. L. 
116-260)--also known as the Coronavirus Response and Recovery 
Supplemental Appropriations Act (CRRSAA)--makes $14 billion available 
to support public transportation in preventing, preparing for, and 
responding to coronavirus, on top of full-year appropriations. These 
Transit Infrastructure Grants include $13.26 billion apportioned 
according to the Urbanized Area Formula Program (49 U.S.C. 5307) and 
State of Good Repair Program (49 U.S.C. 5337) formulas and administered 
under the Urbanized Area Formula Program, $678 million apportioned 
according to the Formula Grants for Rural Areas (49 U.S.C. 5311) 
formula and administered under the Formula Grants for Rural Areas and 
Public Transportation on Indian Reservations formula programs, and $50 
million apportioned according to the Enhanced Mobility of Seniors and 
Individuals with Disabilities (49 U.S.C. 5310) formula.
    For more information about Urbanized Area Formula CRRSAA Transit 
Infrastructure grants, please contact Alexandria Burns at (202) 366-
7464 or [email protected].
    For more information about Rural Area Formula CRRSAA Transit 
Infrastructure grants, please contact Sarah Clements at (202) 366-3062 
or [email protected].
    For more information about Enhanced Mobility of Seniors and 
Individuals with Disabilities CRRSAA Transit Infrastructure grants, 
please contact Marianne Stock at (202) 366-2677 or 
[email protected].

[[Page 38803]]



                  CRRSAA Transit Infrastructure Grants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Recipients of Urbanized Area Formula Program.......      $13,271,310,572
Recipients of Formula Grants for Rural Areas.......          678,654,455
Recipients of Enhanced Mobility of Seniors and                50,034,973
 Individuals with Disabilities.....................
Program Management and Oversight...................         (10,000,000)
                                                    --------------------
    Total Apportioned..............................       13,990,000,000
------------------------------------------------------------------------

2. Apportionment Criteria
    CRRSAA provides the following criteria for apportioning Transit 
Infrastructure grants:
    a. Under CRRSAA, $13,261,831,064 is available, after excluding 
$9,479,508 for oversight, to be administered under the Urbanized Area 
Formula Program (49 U.S.C. 5307), but apportioned through the formulas 
of the Urbanized Area Formula and the State of Good Repair (SGR) 
Programs in the same ratio as funds provided under the Further 
Consolidated Appropriations Act, 2020 (Pub. L. 116-94; 133 Stat. 2534). 
When this funding is combined with funding already received under the 
CARES Act (Pub. L. 116-136; 134 Stat. 599), Congress has limited the 
total amount an Urbanized Area may receive to 75 percent of its 2018 
operating expenses as reported in the National Transit Database; 
amounts in excess of that will be apportioned among urbanized areas 
that have not reached 75 percent of their 2018 operating costs between 
CARES Act funding and that which would otherwise be provided by these 
Transit Infrastructure grants.
    b. Under CRRSAA, $648,169,702 is available, after excluding $30 
million for Public Transportation on Indian Reservations and $484,753 
for oversight, to be apportioned to recipients eligible under the 
Formula Grants for Rural Areas Program (49 U.S.C. 5311) in the same 
ratio as funds provided under the Further Consolidated Appropriations 
Act, 2020 (Pub. L. 116-94; 133 Stat. 2534). When this funding is 
combined with funding already received under the CARES Act (Pub. L. 
116-136; 134 Stat. 599) for rural operating costs, Congress has limited 
the total amount a State may receive for rural operating costs to 125 
percent of the State's combined 2018 rural operating costs of the 
recipients and subrecipients in the State; amounts in excess of that 
will be apportioned among States that have not reached 125 percent of 
their State's combined rural operating costs for 2018 between CARES Act 
funding and that which would otherwise be provided by these Transit 
Infrastructure Grants. The $30 million for the Public Transportation on 
Indian Reservations formula program is apportioned in the same ratio as 
funds provided under the Further Consolidated Appropriations Act, 2020 
but without a limitation on apportionments based on 2018 operating 
expenses.
    c. Under CRRSAA, $49,999,234 is available, after excluding $35,739 
for oversight, to be apportioned to recipients eligible under the 
Enhanced Mobility of Seniors and Individuals with Disabilities Program 
(49 U.S. 5310) in the same ratio as funds provided under the Further 
Consolidated Appropriations Act, 2020 (Pub. L. 116-94; 133 Stat. 2534).
3. Period of Availability
    Funds are available to recipients until expended.
4. Further Conditions
    The following conditions apply to the funding provided under CRRSAA 
and unobligated funding previously made available under the CARES Act:
    a. Funds are available up to a 100-percent Federal share, at the 
option of the recipient, as are any unobligated funds previously 
provided under the Enhanced Mobility of Seniors and Individuals with 
Disabilities Program (49 U.S.C. 5310) from FY 2021 or earlier.
    b. Funds are available for the operating expenses of transit 
agencies related to the response to the COVID-19 public health 
emergency, including, beginning on January 20, 2020, reimbursement for 
operating costs to maintain service and lost revenue due to the COVID-
19 public health emergency, including the purchase of personal 
protective equipment, and paying the administrative leave of operations 
or contractor personnel due to reductions in service.
    c. Funds must be directed, to the maximum extent possible, to 
payroll and operations of public transit (including payroll and 
expenses of private providers of public transportation), unless the 
recipient certifies to the Secretary that the recipient has not 
furloughed any employees.
    d. Operating expenses are not required to be included in a 
transportation improvement program, long range transportation plan, 
statewide transportation plan, or a statewide transportation 
improvement program.
    e. Private providers of public transportation are considered 
eligible subrecipients.

S. American Rescue Plan Act of 2021 Federal Transit Administration 
Grants

1. Funding Availability
    Title III Section 3401 of the American Rescue Plan Act of 2021 
(Pub. L. 117-2) (ARP) makes $30.5 billion in supplemental 
appropriations available to support the transit industry during the 
COVID-19 pandemic. This funding includes $26 billion for eligible 
recipients of Urbanized Area Formula Program grants (49 U.S.C. 5307); 
$275.9 million for eligible recipients of Formula Grants for Rural 
Areas (49 U.S.C. 5311); $6.3 million for States for the Rural Transit 
Assistance Program (49 U.S.C. 5311(b)(3)); $30 million for the Public 
Transit on Indian Reservations Formula Program (49 U.S.C. 5311(c)(1); 
$5 million for the Public Transit on Indian Reservations Competitive 
Program (49 U.S.C. 5311(c)(1); $50 million for eligible recipients of 
the Enhanced Mobility of Seniors and Individuals with Disabilities 
formula Program (49 U.S.C. 5310); $100 million for Interstate Bus 
Program (49 U.S.C. 5311(f)) services using the Formula Grants for Rural 
Areas (49 U.S.C. 5311) formula; $1.675 billion for eligible Capital 
Investment Grants (49 U.S.C. 5309); $25 million for eligible recipients 
of the Urbanized Area Formula Program (49 U.S.C. 5307) for planning the 
restoration of services impacted by the coronavirus public health 
emergency, to be made available through a NOFO; and $2.2 billion for 
recipients and subrecipients of the Urbanized Area Formula Program and 
Formula Grants for Rural Areas that need additional assistance, to be 
made available through a NOFO. A total of $1.5 million is available to 
FTA for oversight.
    For more information About Urbanized Area Formula ARP Federal 
Transit Administration grants, please contact Alexandria Burns at (202) 
366-7464 or [email protected].

[[Page 38804]]

    For more information about Rural Area Formula ARP Federal Transit 
Administration grants, please contact Sarah Clements at (202) 366-3062 
or [email protected].
    For more information about Enhanced Mobility of Seniors and 
Individuals with Disabilities ARP Federal Transit Administration 
grants, please contact Destiny Buchanan at (202) 493-8018 or 
[email protected].

                        American Rescue Plan Act
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Recipients of Urbanized Area Formula Program........     $26,086,580,227
Recipients of Formula Grants for Rural Areas........         275,869,733
Rural Transit Assistance Program....................           6,344,280
Tribal Transit Program (formula and discretionary)..          35,000,000
Recipients of Enhanced Mobility of Seniors and                50,000,000
 Individuals with Disabilities......................
Interstate Bus Program..............................         100,000,000
Recipients of Capital Investment Grant Program......       1,675,000,000
Urbanized Area Planning.............................          25,000,000
Additional Assistance (Discretionary)...............       2,207,561,294
Program Management and Oversight....................         (1,467,770)
                                                     -------------------
    Total Apportioned...............................      30,459,887,764
------------------------------------------------------------------------

2. Apportionment Criteria
    ARP provides the following criteria for apportioning Federal 
Transit Administration Grants:
    a. $26,085,112,457 is available, after excluding $1,467,770 for 
oversight, to be administered under the Urbanized Area Formula Program 
(49 U.S.C. 5307) and apportioned using National Transit Database 
information, such that each urbanized area is apportioned an amount 
that--when combined with any funding it may have received through the 
Coronavirus Aid, Relief, and Economic Security (CARES) Act and 
Coronavirus Response and Relief Supplemental Appropriations Act 
(CRRSAA) to prevent, prepare for, and respond to coronavirus--is equal 
to 132 percent of the urbanized area's 2018 operating costs. Any 
remaining funds are then apportioned to those urbanized areas that had 
already received 132 percent or more of their 2018 operating expenses 
through combined CARES Act and CRRSAA funding, such that each receives 
an apportionment equal to 25 percent of its 2018 operating costs.
    b. $275,869,733 is available to be apportioned to recipients 
eligible under the Formula Grants for Rural Areas Program (49 U.S.C. 
5311) and is apportioned as follows. Considering the total amount 
previously received by a State through the CARES Act and CRRSAA to 
prevent, prepare for, and respond to coronavirus, States that have 
already received 150 percent or more of the combined 2018 rural 
operating costs of the recipients and subrecipients in the State are 
apportioned 5 percent of 2018 operating costs; States that have already 
received between 140 and 150 percent of 2018 operating costs are 
apportioned 10 percent of 2018 operating costs; and States that have 
received less than 140 percent of 2018 operating costs are apportioned 
20 percent of 2018 operating costs.
    c. $30,000,000 is available for Public Transportation on Indian 
Reservations formula grants (49 U.S.C. 5311(c)(1)(B)), and $5,000,000 
for Public Transportation on Indian Reservations discretionary grants 
(49 U.S.C. 5311(c)(1)(A)). The formula funding is distributed according 
to the same formula and data as the FY 2021 apportionment for the 
Tribal formula program. The discretionary funds will be made available 
through a NOFO.
    d. $6,344,280 is available to States for purposes eligible under 
the Rural Transit Assistance Program (49 U.S.C. 5311(b)(3)).
    e. $50,000,000 is available to be apportioned to recipients 
eligible under the Enhanced Mobility of Seniors and Individuals with 
Disabilities Program (49 U.S.C. 5310) in the same ratio as funds 
provided under the Further Consolidated Appropriations Act, 2020 (Pub. 
L. 116-94; 133 Stat. 2534).
    f. $1,675,000,000 is available for recipients and subrecipients of 
the Capital Investment Grant (CIG) (49 U.S.C. 5309) program. Of the 
total amount appropriated for CIG recipients, $1,250,000,000 is 
designated for those with New Starts (Section 5309(d)) and Core 
Capacity (Section 5309(e)) projects that have existing full funding 
grant agreements and that received allocations for FY 2019 or FY 2020, 
except those with projects that are open for revenue service. These 
funds are apportioned based on the non-CIG share of the amounts 
allocated. Of the total amount appropriated for CIG recipients, 
$175,000,000 is designated for those with New Starts and Core Capacity 
projects that have an existing full funding grant agreement and that 
received an allocation only prior to FY 2019, except those with 
projects that are open for revenue service. These funds are apportioned 
based on the non-Capital Investment Grants program share of the amounts 
allocated, except that no project may receive more than 40 percent of 
the total $175,000,000 provided. Any funds that remain due to this 
limitation are apportioned to those projects that do not exceed 40 
percent of the total funding. Of the total amount appropriated for CIG 
projects, $250,000,000 is designated for those with Small Starts 
(Section 5309(h)) projects.
    g. $100,000,000 is available to States to support bus operators 
that partner with recipients or subrecipients to provide Interstate Bus 
service under 49 U.S.C. 5311(f). These funds are allocated using the 
same ratio as the Formula Grants for Rural Areas (49 U.S.C. 5311) FY 
2020 appropriations. States that do not have eligible bus operators may 
use the apportioned funds for any expense eligible under 49 U.S.C. 
5311, but these funds are not subject to the exception in 49 U.S.C. 
5311(f)(2) that allows the Governor of a recipient states to certify 
that the state's interstate bus service needs are already being met.
    h. $25,000,000 is available to recipients eligible under the 
Urbanized Area Formula Program (49 U.S.C. 5307) for the planning of 
public transportation associated with the restoration of services as 
the coronavirus public health emergency concludes. These funds will be 
made available through a NOFO.
    g. $2,207,561,294 is available to recipients and subrecipients 
eligible under the Urbanized Area Formula Program (49 U.S.C. 5307) and 
Formula Grants for Rural Areas Program (49 U.S.C. 5311) that, as a 
result of the COVID-19 health emergency, require additional assistance 
for costs related to operations, personnel, cleaning, and sanitization 
combating the spread of

[[Page 38805]]

pathogens on transit systems, and debt service payments incurred to 
maintain operations and avoid layoffs and furloughs. These funds will 
be made available through a NOFO no later than 180 days after ARP was 
enacted.
3. Period of Availability
    Funds are available until September 30, 2024, and may not be re-
apportioned. Funds must be expended by September 30, 2029. Any funds 
not disbursed by September 30, 2029, will be deobligated from a grant 
and returned to the Treasury.
4. Further Conditions
    The following conditions apply to the funding provided under ARP:
    a. Funds are available up to a 100-percent Federal share, at the 
option of the recipient.
    b. All funds except those for Capital Investment Grants, Rural 
Transit Assistance Program grants, and Planning Grants are available 
for the operating expenses of transit agencies to prevent, prepare for, 
and respond to the coronavirus public health emergency, including, 
beginning on January 20, 2020: Reimbursement for payroll of public 
transportation (including payroll and expenses of private providers of 
public transportation); operating costs to maintain service due to lost 
revenue as a result of the coronavirus public health emergency, 
including the purchase of personal protective equipment; and paying the 
administrative leave of operations or contractor personnel due to 
reductions in service.
    c. Except for Capital Investment grants, Rural Transit Assistance 
Program grants, and Planning grants, funds must be directed to payroll 
and operations of public transit (including payroll and expenses of 
private providers of public transportation), unless the recipient 
certifies to the Administrator of the Federal Transit Administration 
that the recipient has not furloughed any employees.
    d. Operating expenses are not required to be included in a 
transportation improvement program, long range transportation plan, 
statewide transportation plan, or a statewide transportation 
improvement program.

V. FY 2021 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

1. Caution to New Recipients
    While FTA provides pre-award authority to incur expenses before 
grant award for formula programs, it recommends that first-time grant 
recipients NOT utilize this automatic pre-award authority without 
verifying with the appropriate FTA Regional Office that all 
prerequisite requirements have been met. Commonly, a new recipient may 
misunderstand pre-award authority conditions and be unaware of all the 
applicable FTA requirements that must be met in order to be reimbursed 
for project expenditures incurred in advance of grant award. FTA 
programs have specific statutory requirements that are often different 
from those for other Federal grant programs with which new recipients 
may be familiar. If funds are expended for an ineligible project or 
activity, or for an eligible activity but at an inappropriate time 
(e.g., prior to NEPA completion), FTA will be unable to reimburse the 
project sponsor and, in certain cases, the entire project may be 
rendered ineligible for FTA assistance.
2. Policy
    FTA provides pre-award authority to incur expenses before grant 
award for certain program areas described below. This pre-award 
authority allows recipients to incur certain project costs before grant 
approval and retain the eligibility of those costs for subsequent 
reimbursement after grant approval. The recipient assumes all risk and 
is responsible for ensuring that all conditions are met to retain 
eligibility. This pre-award spending authority permits an eligible 
recipient to incur costs on an eligible transit capital, operating, 
planning, or administrative project without prejudice to possible 
future Federal participation in the cost of the project.
    In this notice, FTA provides pre-award authority through the 
authorization period of the FAST Act, including the extension 
authorized in the Continuing Appropriations Act, 2021 and Other 
Extensions Act, plus an additional year (October 1, 2015, through 
September 30, 2022) for capital assistance under all formula programs, 
so long as the conditions described below are met.
    FTA provides pre-award authority for planning and operating 
assistance under the formula programs without regard to the period of 
the authorization. All pre-award authority is subject to conditions and 
triggers stated below: The actual items of cost associated with the use 
of pre-award authority are documented in the initial Federal Financial 
Report (FFR) that is required to be completed prior to the recipient 
executing the award.
    For projects funded by competitive programs, pre-award authority 
may be granted at the time of project selection.
a. Operating, Planning, or Administrative Assistance
    FTA does not impose additional conditions on pre-award authority 
for operating, planning, or administrative assistance under the formula 
grant programs. Recipients may be reimbursed for expenses incurred 
before grant award so long as funds have been expended in accordance 
with all Federal requirements, would have been allowable if incurred 
after the date of award, and the recipient is otherwise eligible to 
receive the funding. In addition to cross-cutting Federal grant 
requirements, program specific requirements must be met. Designated 
recipients for Section 5310 funds have pre-award authority for the ten 
percent of the apportionment they may use for program administration.
b. Transit Capital Projects Other Than Capital Investment Grants
    For transit capital projects, the date that costs may be incurred 
varies depending on the type of activity and its potential to have a 
significant impact on the human and natural environment as described 
under conditions in section 3 below.
c. Public Transportation Innovation, Technical Assistance and Workforce 
Development
    Unless provided for in an announcement of project selections, pre-
award authority does not apply to Section 5312 Public Transportation 
Innovation projects or Section 5314 Technical Assistance and Workforce 
Development projects. Before an applicant may incur costs for 
activities under these programs, it must first obtain a written Letter 
of No Prejudice (LONP) from FTA. Information about LONP procedures may 
be obtained from Lisa Colbert in FTA's Office of Research, 
Demonstration, and Innovation (TRI): [email protected], or call 202-
366-9261.
3. Conditions
    The conditions under which pre-award authority may be utilized are 
specified below:
    a. Pre-award authority is not a legal or implied commitment that 
the subject project will be approved for FTA assistance or that FTA 
will obligate Federal funds. Furthermore, it is not a legal or implied 
commitment that all items undertaken by the applicant will be eligible 
for inclusion in the project.
    b. All FTA statutory, procedural, and contractual requirements must 
be met.
    c. No action will be taken by the recipient that prejudices the 
legal and

[[Page 38806]]

administrative findings that FTA must make in order to approve a 
project.
    d. Local funds expended by the recipient after the date of the pre-
award authority will be eligible for credit toward local match or 
reimbursement if FTA later makes a grant or grant amendment for the 
project. Local funds expended by the recipient before the date of the 
pre-award authority will not be eligible for credit toward local match 
or reimbursement. Furthermore, the expenditure of local funds or the 
undertaking of certain activities that would compromise FTA's ability 
to comply with Federal environmental laws (e.g., project implementation 
activities such as land acquisition, demolition, or construction before 
the date of pre-award authority) may render the project ineligible for 
FTA funding.
    e. The Federal amount of any future FTA assistance awarded to the 
recipient for the project will be determined based on the overall scope 
of activities and the prevailing statutory provisions with respect to 
the Federal/local match ratio at the time the funds are obligated.
    f. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    g. When a grant for the project is subsequently awarded, the grant 
must indicate the use of pre-award authority and an initial Federal 
Financial Report must be submitted in TrAMS.
h. Environmental Requirements
    All Federal environmental requirements must be met at the 
appropriate time for a project to remain eligible for Federal funding. 
Designated recipients may incur costs for design and environmental 
review activities for all formula funded projects from the date of the 
authorization of the formula funds or for discretionary funded projects 
other than those funded by the Capital Investment Grants (CIG) program 
from the date of the announcement of the competitive allocation of 
funds for the project.
    For projects that qualify for a categorical exclusion (CE) pursuant 
to 23 CFR 771.118(c), designated recipients may start activities and 
incur costs under pre-award authority for property acquisition, 
demolition, construction, and acquisition of vehicles, equipment, or 
construction materials from the date of the authorization of formula 
funds or the date of the announcement of competitive allocations for 
the project.
    FTA recommends that a grant applicant considering a CE pursuant to 
23 CFR 771.118(c) contact the appropriate FTA Regional Office for 
assistance in determining the proper environmental review process, 
including other applicable environmental laws, and level of 
documentation necessary before incurring the above-mentioned costs. 
This applies especially when the grant applicant believes a c-list CE 
with construction activities, such as 23 CFR 771.118(c)(8), (9), (10), 
(12), or (13), applies to its project. If FTA subsequently finds that a 
project does not qualify for a CE under 23 CFR 771.118(c) and the 
sponsor has already undertaken activities under pre-award authority, 
the project will be ineligible for FTA assistance.
    For all other non-CIG projects that do not qualify for a CE under 
23 CFR 771.118(c), grant applicants may take action and incur costs for 
property acquisition, demolition, construction, and acquisition of 
vehicles, equipment, or construction materials from the date that FTA 
completes the environmental review process required by NEPA and its 
implementing regulations, 23 U.S.C. 139, and other environmental laws, 
by its issuance of a 23 CFR 771.118(d) CE determination, a finding of 
no significant impact (FONSI), a combined final environmental impact 
statement (FEIS)/record of decision (ROD), or a ROD.
i. Planning and Other Requirements
    Formula funds must be authorized or appropriated and competitive 
project allocations published or announced before pre-award authority 
can be considered. The requirements that a capital project be included 
in a locally adopted Metropolitan Transportation Plan, the metropolitan 
transportation improvement program, and the federally approved 
statewide transportation improvement program (23 CFR part 450) must be 
satisfied before the recipient may advance the project beyond planning 
and preliminary design with non-federal funds under pre-award 
authority. If the project is located within an EPA-designated non-
attainment or maintenance area for air quality, the conformity 
requirements of the Clean Air Act, 40 CFR part 93, must also be met 
before the project may be advanced into implementation-related 
activities under pre-award authority triggered by the completion of the 
NEPA process. For a planning project to have pre-award authority, the 
planning project must be included in an MPO-approved UPWP that has been 
coordinated with the State.
    j. Federal procurement procedures, as well as the whole range of 
applicable Federal requirements (e.g., Buy America, Davis-Bacon Act, 
and Disadvantaged Business Enterprise) must be followed for projects in 
which Federal funding will be sought in the future. Failure to follow 
any such requirements could make the project ineligible for Federal 
funding. In short, the administrative flexibility allowed by pre-award 
authority requires a recipient to make certain that no Federal 
requirements are circumvented.
    k. All program specific requirements must be met. For example, 
projects under Section 5310 must comply with specific program 
requirements, including coordinated planning. Before incurring costs, 
recipients are strongly encouraged to consult with the appropriate FTA 
Regional Office regarding the eligibility of the project for future FTA 
funds and for questions on environmental requirements, or any other 
Federal requirements that must be met.
4. Pre-Award Authority for the Fixed Guideway Capital Investment Grants 
Program
    Projects proposed for Section 5309 CIG program funds are required 
to follow a multi-step, multi-year process defined in law. For New 
Starts and Core Capacity projects, this process includes three phases: 
Project development (PD), engineering, and construction. For Small 
Starts projects, this process includes two phases: PD and construction. 
After receiving a letter from the project sponsor requesting entry into 
the PD phase, FTA must respond in writing within 45 days whether the 
information was sufficient for entry. If FTA's correspondence indicates 
the information was sufficient and the New Starts, Small Starts or Core 
Capacity project enters PD, FTA extends pre-award authority at that 
time to the project sponsor to incur costs for PD activities. PD 
activities include the work necessary to complete the environmental 
review process and as much engineering and design activities as the 
project sponsor believes are necessary to support the environmental 
review process. Upon completion of the environmental review process 
with a combined FEIS/ROD, ROD, FONSI, or CE determination by FTA for a 
New Starts, Small Starts, or Core Capacity Improvement project, FTA 
extends pre-award authority to the project sponsor to incur costs for 
as much engineering and design as needed to develop a reasonable cost 
estimate and financial plan for the project, utility relocation, and 
real property acquisition and associated relocations for any property 
acquisitions not already accomplished as a separate project for 
hardship or protective purposes or right-of-way under 49 U.S.C. 
5323(q).

[[Page 38807]]

    For Small Starts projects, upon completion of the environmental 
review process and confirmation from FTA that the overall project 
rating is at least a Medium, FTA extends pre-award authority for 
vehicle purchases. Upon receipt of a letter notifying a New Starts or 
Core Capacity project sponsor of the project's approval into the 
engineering phase, FTA extends pre-award authority for vehicle 
purchases as well as any remaining engineering and design, demolition, 
and procurement of long lead items for which market conditions play a 
significant role in the acquisition price. The long lead items include, 
but are not limited to, procurement of rails, ties, and other 
specialized equipment, and commodities.
    Please contact the FTA Regional Office for a determination of 
activities not listed here, but which meet the intent described above. 
FTA provides this pre-award authority in recognition of the long lead 
time and complexity involved with purchasing vehicles as well as their 
relationship to the ``critical path'' project schedule. FTA cautions 
recipients that do not currently operate the type of vehicle proposed 
in the project about exercising this pre-award authority. FTA 
encourages these sponsors to wait until later in the process when 
project plans are more fully developed. FTA reminds project sponsors 
that the procurement of vehicles must comply with all Federal 
requirements, including, but not limited to, competitive procurement 
practices, the Americans with Disabilities Act, Disadvantaged Business 
Enterprise program requirements and Buy America. FTA encourages project 
sponsors to discuss the procurement of vehicles with FTA in regard to 
Federal requirements before exercising pre-award authority. Because 
there is not a formal engineering phase for Small Starts projects, FTA 
does not extend pre-award authority for demolition and procurement of 
long lead items. Instead, this work must await receipt of a 
construction grant award or an expedited grant agreement.
a. Real Property Acquisition
    As stated above, FTA extends pre-award authority for the 
acquisition of real property and real property rights for CIG projects 
(New or Small Starts or Core Capacity) upon completion of the 
environmental review process for that project. The environmental review 
process is completed when FTA signs a combined FEIS/ROD, ROD, FONSI, or 
makes a CE determination. With the limitations and caveats described 
below, real estate acquisition may commence, at the project sponsor's 
risk. To maintain eligibility for a possible future FTA grant award, 
any acquisition of real property or real property rights must be 
conducted in accordance with the requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act (URA) and its 
implementing regulations, 49 CFR part 24. This pre-award authority is 
strictly limited to costs incurred: (i) To acquire real property and 
real property rights in accordance with the URA regulation; and (ii) to 
provide relocation assistance in accordance with the URA regulation. 
This pre-award authority is limited to the acquisition of real property 
and real property rights that are explicitly identified in the draft 
environmental impact statement (DEIS), FEIS, environmental assessment 
(EA), or CE documentation, as needed for the selected alternative that 
is the subject of the FTA-signed combined FEIS/ROD, ROD, FONSI, or CE 
determination. This pre-award authority regarding property acquisition 
that is granted at the completion of the environmental review process 
does not cover site preparation, demolition, or any other activity that 
is not strictly necessary to comply with the URA, with one exception--
namely when a building that has been acquired, vacated, and awaits 
demolition poses a potential fire safety hazard or other hazard to the 
community in which it is located, or is susceptible to unauthorized 
occupants. Demolition of the building is also covered by this pre-award 
authority upon FTA's written agreement that the adverse condition 
exists. Pre-award authority for property acquisition is also provided 
when FTA makes a CE determination for a protective buy or hardship 
acquisition in accordance with 23 CFR 771.118(d)(3). Pre-award 
authority for property acquisition is also provided when FTA completes 
the environmental review process for the acquisition of right-of-way as 
a separate project in accordance with 49 U.S.C. 5323(q). When a tiered 
environmental review in accordance with 23 CFR 771.111(g) is used, pre-
award authority is NOT provided upon completion of the first-tier 
environmental document except when the Tier-1 ROD or FONSI signed by 
FTA explicitly provides such pre-award authority for a particular, 
identified acquisition. Project sponsors should use pre-award authority 
for real property acquisition relocation assistance with a clear 
understanding that it does not constitute a funding commitment by FTA. 
FTA provides pre-award authority upon completion of the environmental 
review process for real property acquisition and relocation assistance 
for displaced persons and businesses in accordance with the 
requirements of the URA.
b. Reimbursement of Costs Incurred Under Pre-Award Authority
    Although FTA provides pre-award authority for property acquisition, 
long lead items, demolition, utility relocation, and vehicle purchases 
upon completion of the environmental review process, FTA does not award 
Federal funding for these activities conducted under pre-award 
authority until the project receives a CIG program construction grant. 
This is to ensure that Federal funds are not risked on a project whose 
advancement into construction is not yet assured.
c. National Environmental Policy Act (NEPA) Activities
    NEPA requires that certain projects proposed for FTA funding 
assistance be subjected to a public and interagency review of the need 
for the project, its environmental and community impacts, and 
alternatives to avoid and reduce adverse impacts. Projects of more 
limited scope also need a level of environmental review to determine 
whether there are significant environmental impacts or confirmation 
that a CE applies. FTA's regulation titled ``Environmental Impact and 
Related Procedures,'' at 23 CFR part 771 states that the costs incurred 
by a grant applicant for the preparation of environmental documents 
requested by FTA are eligible for FTA financial assistance (23 CFR 
771.105(f)). Accordingly, FTA extends pre-award authority for costs 
incurred to comply with NEPA regulations and to conduct NEPA-related 
activities, effective as of the earlier of the following two dates: (1) 
The date of the Federal approval of the relevant STIP or STIP amendment 
that includes the project or any phase of the project, or that includes 
a project grouping under 23 CFR 450.216(j) that includes the project; 
or (2) the date that FTA approves the project into the project 
development phase of the CIG program. The grant applicant must notify 
the appropriate FTA Regional Office to initiate the Federal 
environmental review process consistent with 23 CFR 771.111. NEPA-
related activities include, but are not limited to, public involvement 
activities, historic preservation reviews, Section 4(f) evaluations, 
wetlands evaluations, and endangered species consultations. This pre-
award authority is strictly limited to costs incurred to conduct the 
NEPA process and associated engineering, and to prepare environmental, 
historic preservation

[[Page 38808]]

and related documents. When a New Starts, Small Starts, or Core 
Capacity project is granted pre-award authority for the environmental 
review process, the reimbursement for NEPA activities conducted under 
pre-award authority may be sought at any time through Section 5307 
(Urbanized Area Formula Program) or the flexible highway programs 
(e.g., Surface Transportation Program or Congestion Mitigation and Air 
Quality Improvement Program). Reimbursement from the Section 5309 CIG 
program for NEPA activities conducted under pre-award authority is 
provided only for expenses incurred after entry into the project 
development phase and only once a construction grant agreement is 
signed. As with any pre-award authority, FTA reimbursement for costs 
incurred is not guaranteed and recipients may not start activities and 
incur costs under pre-award authority for property acquisition, 
demolition, construction, and acquisition of vehicles, equipment, or 
construction materials until the environmental review process is 
complete.
d. Other Activities Requiring Letter of No Prejudice (LONP).
    Except as discussed in paragraphs a. through c. above, a CIG 
project sponsor must obtain a written LONP from FTA before incurring 
costs for any activity not covered by pre-award authority. To obtain an 
LONP, an applicant must submit a written request accompanied by 
adequate information and justification to the appropriate FTA Regional 
Office, as described in B. below.
    For more information about the Fixed Guideway Capital Investment 
Grants program, including LONP policy, real property acquisition, and 
reimbursement of costs incurred under Pre-Award Authority, contact 
Elizabeth Day, Office of Capital Project Development, at (202) 366-5159 
or [email protected].
    For more information about FTA's National Environmental Policy Act 
(NEPA) activities, contact Megan Blum, Office of Environmental 
Programs, at (202) 366-0463 or [email protected].
5. Pre-Award Authority for the Expedited Project Delivery (EPD) Pilot 
Program
    The EPD Pilot Program, as authorized by Section 3005(b) of the 
Fixing America's Surface Transportation Act (FAST Act), is aimed at 
expediting delivery of new fixed guideway capital projects, small 
starts projects, or core capacity improvement projects. Section 3005(b) 
requires the FTA to notify Congress and the applicant, in writing, 
within 120 days after the receipt of a complete application, on the 
decision of the application. FTA will extend pre-award authority for 
all eligible project costs at the time it is announced that a project 
has been selected. There is no pre-award authority provided until a 
project selection announcement is made, and costs incurred prior to 
project selection are not eligible. Letters of No Prejudice will not be 
provided for the EPD Pilot Program, as all eligible costs are covered 
by pre-award authority at the time of project selection.
    Although FTA provides pre-award authority for eligible project 
costs, FTA does not award Federal funding for these activities 
conducted under pre-award authority until the project receives an EPD 
construction grant. This is to ensure that Federal funds are not risked 
on a project whose advancement into construction is not yet assured. To 
maintain eligibility for a possible future FTA grant award, any 
acquisition of real property or real property rights must be conducted 
in accordance with the requirements of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act (URA) and its 
implementing regulations, 49 CFR part 24.
    For more information about the Expedited Project Delivery Pilot 
Program, contact Mark Ferroni, Office of Planning and Environment, at 
(202) 366-3233 or [email protected].

B. Letter of No Prejudice (LONP) Policy

1. Policy
    LONP authority allows an applicant to incur costs on a project 
utilizing non-Federal resources, with the understanding that the costs 
incurred subsequent to the issuance of the LONP may be reimbursable as 
eligible expenses or eligible for credit toward the local match should 
FTA approve the project for a grant award at a later date. LONPs are 
applicable to projects and project activities not covered by automatic 
pre-award authority. The majority of LONPs will be for Section 5309 CIG 
program projects undertaking activities not covered under automatic 
pre-award authority. LONPs may be issued for formula funds beyond the 
life of the current authorization or FTA's extension of automatic pre-
award authority; however, the LONP is limited to a five-year period, 
unless otherwise authorized in the LONP. Receipt of Federal funding 
under any program is not implied or guaranteed by an LONP.
2. Conditions and Federal Requirements
    The conditions and requirements for pre-award authority specified 
in section V.A.4.b and V.A.4.c above apply to all LONPs for the CIG 
program. Because project implementation activities may not be initiated 
before completion of the environmental review process, FTA will not 
issue an LONP for such activities until the environmental review 
process has been completed with a combined FEIS/ROD, ROD, FONSI, or CE 
determination.
3. Request for LONP
    Before incurring costs for project activities not covered by 
automatic pre-award authority, the project sponsor must first submit a 
written request for an LONP, accompanied by adequate information and 
justification, to the appropriate regional office and obtain written 
approval from FTA. FTA approval of an LONP is determined on a case-by-
case basis. Federal funding under the CIG program is not implied or 
guaranteed by an LONP. Specifically, when requesting an LONP, the 
applicant shall provide the following items:
    a. Description of the activities to be covered by the LONP.
    b. Justification for advancing the identified activities. The 
justification should include an accurate assessment of the consequences 
to the project scope, schedule, and budget should the LONP not be 
approved.
    c. Allocated level of risk and contingency for the activity 
requested.

C. FY 2021 Annual List of Certifications and Assurances

    Section 5323(n) requires FTA to publish annually a list of all 
certifications required under Chapter 53 concurrently with the 
publication of this annual apportionment notice. The 2021 version of 
FTA's Certifications and Assurances is available on FTA's website. FTA 
cannot make an award or an amendment to an award unless the recipient 
has executed the latest version of FTA's Certifications and Assurances. 
FTA encourages recipients of formula funding to execute the new 
Certifications and Assurances within 90 days of this notice, to prevent 
any delay to application processing.

D. Civil Rights Requirements

1. Civil Rights Overview
    Recipients must carry out provisions of the Americans with 
Disabilities Act (ADA) of 1990, Section 504 of the Rehabilitation Act 
of 1973, as amended, and the Department of Transportation's 
implementing regulations at 49 CFR parts 27, 37, 38, and 39. FTA's ADA

[[Page 38809]]

Circular (4710.1) provides guidance for carrying out the regulatory 
requirements of the ADA. In addition, recipients must regularly prepare 
and submit in TrAMS civil rights program plans and reports to establish 
voluntary compliance and document policies and practices in the 
following areas:
    a. Title VI of the Civil Rights Act of 1964: The Department of 
Transportation's Title VI implementing regulations are found in 49 CFR 
part 21. FTA's Title VI Circular (4702.1B) provides guidance for 
carrying out the regulatory requirements and outlines the Title VI 
program submission process.
    b. Disadvantaged Business Enterprise (DBE) program: The Department 
of Transportation's DBE implementing regulations are found in 49 CFR 
part 26 and sets forth requirements for implementing the DBE program in 
good faith and developing and reporting on the triennial DBE goal.
    c. Title VII of the Civil Rights Act of 1964, Equal Employment 
Opportunity (EEO): The Department of Transportation's EEO implementing 
regulations are found in 49 CFR part 21. FTA's EEO Circular (4704.1A) 
provides guidance for carrying out the regulatory requirements and 
outlines the EEO program submission process.
2. Disadvantaged Business Enterprise Program
    Recipients are expected to comply with the Disadvantaged Business 
Enterprise (DBE) regulations, including when exercising pre-award 
authority and purchasing transit vehicles. The COVID-19 pandemic has 
created challenges for many, including recipients and small businesses, 
such as DBEs. The Department of Transportation has emphasized the value 
and integrity of the DBE program while offering appropriate flexibility 
to recipients during the COVID-19 pandemic, currently in effect until 
June 30, 2021. For more information, see: https://www.transportation.gov/mission/civil-rights/covid-19-guidance. 
Recipients will find additional information on DBE in FTA's COVID-19 
FAQs CR11, CR12 and CR13 at www.transit.dot.gov/coronavirus.
3. Title VI Service Equity Analyses
    Under FTA's Title VI Circular (4702.1B), transit providers that 
operate 50 or more fixed route vehicles in peak service and are located 
in an urbanized area (UZA) with a population of 200,000 or more must 
perform a service equity analysis whenever they make a permanent major 
service change. When a full equity analysis is not required due to the 
size of the recipient or duration of a change, FTA expects agencies to 
take steps to ensure changes are equitable and nondiscriminatory.
    FTA has not waived Title VI requirements for recipients during the 
COVID-19 pandemic. In addition to Circular 4702.1B, recipients will 
find information on equity analysis requirements in FTA's COVID-19 FAQs 
CR2 and CR15 at www.transit.dot.gov/coronavirus.

E. Consolidated Planning Grants

    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant, awarded by either FTA or FHWA. The 
Consolidated Planning Grants (CPG) eliminate the need to monitor 
individual fund sources, if several have been used, and ensures that 
the oldest funds will always be used first.
    Under the CPG, States can report metropolitan planning program 
expenditures, to comply with the Uniform Guidance 2 CFR part 200, 
subpart F, for both FTA and FHWA under the Catalogue of Federal 
Domestic Assistance number for FTA's Metropolitan Planning Program 
(20.505). Additionally, for States with an FHWA Metropolitan Planning 
(PL) fund-matching ratio greater than 80 percent, the State can waive 
the 20 percent local share requirement, with FTA's concurrence, to 
allow FTA funds used for metropolitan planning in a CPG to be granted 
at the higher FHWA rate. For some States, this Federal match rate can 
exceed 90 percent.
    States interested in transferring planning funds between FTA and 
FHWA should contact the FTA Regional Office or FHWA Division Office for 
more detailed procedures. The FHWA Order 4551.1 dated August 12, 2013, 
on ``Funding Transfers to Other Agencies and Among Title 23 Programs'' 
provides guidance and more detailed information. This Order can be 
found on the FHWA website at: https://www.fhwa.dot.gov/legsregs/directives/orders/45511.cfm.
    For more information on Consolidated Planning Grants, contact Ann 
Souvandara, Office of Budget and Policy, FTA, at (202) 366-0649 or 
[email protected], or Victor Austin at (202) 366-2996 or 
[email protected].

F. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Office. All applications are 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 Regional 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 recipients 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. Recipient has a Transit Asset Management plan in place that 
meets the requirements of 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 suballocation 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) unless such 
requirements have been waived for the specific funding and activity 
type to facilitate response and recovery from the COVID-19 pandemic.
    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.

[[Page 38810]]

    l. Major Capital Projects as defined by 49 CFR part 633 ``Project 
Management Oversight'' must document FTA has reviewed the project 
management plan and provided approval.
    m. 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.
    n. Recipient has ensured that it has registered to report to the 
National Transit Database, and that any beneficiaries that provide 
public transportation service have also registered to report to the 
National Transit Database. FTA must also provide Congressional 
notification before awarding competitive grants.
    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 the 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.
    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 2021. 
Split letters and/or suballocation letters (Governor's Apportionment 
letters), must also be on file to support grant applications for direct 
recipients. Once suballocation letters for FY 2021 funding are 
finalized, they should be uploaded 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 their 
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., 
Section 5307 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.
    Recipients should refer to applicable regulations and statutes 
referenced in this document.

Nuria I. Fernandez,
Administrator.
[FR Doc. 2021-15576 Filed 7-21-21; 8:45 am]
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