Notice2023-14793
Grant Programs for Urbanized Areas: Program Guidance and Application Instructions, Proposed Circular
Primary source
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Published
July 12, 2023
Issuing agencies
Transportation DepartmentFederal Transit Administration
Abstract
The Federal Transit Administration (FTA) is seeking public comment on a new, consolidated circular entitled, "Grant Programs for Urbanized Areas: Program Guidance and Application Instructions" which consolidates and replaces the circulars for the Urbanized Area Formula Grants Program, the State of Good Repair Grants Program, and the Urbanized Area formula component of the Grants for Buses and Bus Facilities Program. The update and consolidation of the circulars incorporate provisions from the Fixing America's Surface Transportation (FAST) Act; the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law (BIL); the Uniform Administrative Requirements for Federal awards to non-Federal entities; and current FTA policies and procedures.
Full Text
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<title>Federal Register, Volume 88 Issue 132 (Wednesday, July 12, 2023)</title>
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[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44440-44443]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14793]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2023-0009]
Grant Programs for Urbanized Areas: Program Guidance and
Application Instructions, Proposed Circular
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Notice of availability of proposed circular and request for
comments.
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SUMMARY: The Federal Transit Administration (FTA) is seeking public
comment on a new, consolidated circular entitled, ``Grant Programs for
Urbanized Areas: Program Guidance and Application Instructions'' which
consolidates and replaces the circulars for the Urbanized Area Formula
Grants Program, the State of Good Repair Grants Program, and the
Urbanized Area formula component of the Grants for Buses and Bus
Facilities Program. The update and consolidation of the circulars
incorporate provisions from the Fixing America's Surface Transportation
(FAST) Act; the Infrastructure Investment and Jobs Act, also known as
the Bipartisan Infrastructure Law (BIL); the Uniform Administrative
Requirements for Federal awards to non-Federal entities; and current
FTA policies and procedures.
DATES: Comments must be submitted by September 11, 2023. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: Please submit your comments by only one of the following
methods, identifying your submission by docket number FTA-2023-0009.
All electronic submissions must be made to the U.S. Government
electronic site at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>.
(1) Federal eRulemaking Portal: Go to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>
and follow the online instructions for submitting comments.
(2) Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Ground
Floor, Room W12-140, Washington, DC 20590-0001.
(3) Hand Delivery or Courier: West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern time,
Monday through Friday, except Federal holidays.
(4) Fax: 202-493-2251.
Instructions: You must include the agency name (Federal Transit
Administration) and Docket number (FTA-2023-0009) for this notice at
the beginning of your comments. Submit two copies of your comments if
you submit them by mail. For confirmation that FTA received your
comments, include a self-addressed stamped postcard. Note that all
comments received will be posted without change to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>including any personal information provided and
will be available to internet users. For information on DOT's
compliance with the Privacy Act, please visit <a href="https://www.transportation.gov/privacy">https://www.transportation.gov/privacy</a>.
Docket: For access to the docket to read background documents and
comments received, go to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> at any time or to
the U.S. Department of Transportation, 1200 New Jersey Ave. SE, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, Washington,
DC 20590 between 9 a.m. and 5 p.m. Eastern Time, Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For program questions, Latrina
Trotman, Office of Program Management, Federal Transit Administration,
1200 New Jersey Ave. SE, Room E46-301, Washington, DC 20590, phone:
(202) 366-2328, or email, <a href="/cdn-cgi/l/email-protection#0945687d7b606768275d7b667d646867496d667d276e667f"><span class="__cf_email__" data-cfemail="ffb39e8b8d96919ed1ab8d908b929e91bf9b908bd1989089">[email protected]</span></a>. For legal questions,
Jerry Stenquist, Office of Chief Counsel, same address, Room E56-314,
phone: (202)
[[Page 44441]]
493-8020, or email, <a href="/cdn-cgi/l/email-protection#53193621212a7d0027363d22263a202713373c277d343c25"><span class="__cf_email__" data-cfemail="b3f9d6c1c1ca9de0c7d6ddc2c6dac0c7f3d7dcc79dd4dcc5">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overviews
C. Chapter III--General Program Information
D. Chapter IV--Eligible Projects and Requirements
E. Chapter V--Planning & Project Development
F. Chapter VI--Program Management and Administrative
Requirements
G. Appendices
I. Overview
The Federal Transit Administration's (FTA) proposed circular
titled, ``Grant Programs for Urbanized Areas: Program Guidance and
Application Instructions'' is a consolidation of guidance for the
administration and preparation of grant applications for the Urbanized
Area Formula Grants Program under 49 U.S.C. 5307 (FTA Circular C
9030.1), State of Good Repair Grants Program under 49 U.S.C. 5337 (FTA
Circular C 5300.1), and the Urbanized Area component of the Grants for
Buses and Bus Facilities Program under 49 U.S.C. 5339(a) (FTA Circular
C 5100.1). Additionally, this circular incorporates provisions of the
FAST Act (Pub. L. 114-94) and BIL (Pub. L. 117-58) and includes
program-specific guidance for these formula programs. Additional
requirements for all grant programs are identified in FTA's Award
Management Requirements Circular C 5010.1. The proposed circular is
posted on <a href="https://www.regulations.gov">https://www.regulations.gov</a> in Docket FTA-2023-0009.
The proposed circular consolidates and summarizes programmatic
information, streamlines pre-existing guidance from the three program
circulars, and reduces duplication of information provided between the
Urbanized Area Formula Programs circular and FTA's other topic-specific
circulars, including by moving certain text applicable to most or all
of FTA's grant programs to FTA's Award Management Requirements Circular
C 5010.1. Furthermore, the proposed circular clarifies a number of
policy issues as interpreted and applied by FTA. These clarifications
address topics in the existing program circulars, including:
reallocations or transfers of apportionments; consolidation of grants
to insular areas; intermodal use of formula funds; eligible projects
and activities for each formula program; operating assistance
limitations and exceptions; capital cost of contracting; the role of
transportation network companies in providing public transportation
services; period of availability to obligate funds flexed to the FTA
formula programs from the Federal Highway Administration (FHWA);
planning requirements; pre-award authority; and requirements pertaining
to fares charged to seniors and persons with disabilities.
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Due to the consolidation of the three program circulars,
definitions and program descriptions were compared and revised for
consistency with proposed updates to Circular C 5010.1E ``Award
Management Requirements,'' Circular C 9040.1G ``Formula Grants for
Rural Areas,'' and Circular C 9070.1G ``Enhanced Mobility of Seniors
and Individuals with Disabilities.'' FTA proposes to amend the
definitions section for consistency, clarification, and to reflect
changes to statute and other authorities. Specifically, FTA has updated
the following terms:
<bullet> ``Capital Asset'' is modified for consistency with
Generally Accepted Accounting Principles (GAAP), Governmental
Accounting Standards Board (GASB), Financial Accounting Standards Board
(FASB), and FTA's Uniform System of Accounts.
<bullet> ``Clean Fuel Bus'' now recognizes other low or no
emissions technologies besides full electric and hybrid electric buses.
<bullet> ``Fleet Management Plan'' is modified to explicitly
clarify that the management plan includes an inventory of all rolling
stock.
<bullet> ``Mobility Management'' is modified to explicitly exclude
the operation of public transportation service as a mobility management
activity, consistent with the definition in 49 U.S.C. 5302.
<bullet> ``Rehabilitate'' is expanded to include applicability to
facilities and amended to clarify that not all rehabilitative
activities must be a restoration to original condition to more
accurately reflect the term's broad usage in 49 U.S.C. 5337 and 5339.
<bullet> ``Urbanized Area'' is updated to reflect changes in
designation by the Census Bureau, which no longer utilizes ``Urbanized
Area'' but ``Urban Area'' (UZA), as defined by the Secretary of
Commerce.
<bullet> ``Useful Life'' now applies to real property and other
capital assets. Because useful life depends on depreciation and
estimated time in use, consideration of useful life changes according
to the type of asset in question.
B. Chapter II--Programs Overview
FTA proposes several updates to its program guidance within Chapter
II to reflect statutory and regulatory changes, including information
disseminated by the Census Bureau. The proposed circular further
addresses administrative procedure in apportioning and distributing
funds, including the roles of designated recipients (DR), state
recipients, subrecipients, and private contractors.
The proposed circular includes information related to private
contractors such as transportation network companies (TNCs) and taxi
service; these entities are not eligible subrecipients under sections
5307, 5337 and 5339(a) but may be contracted to perform public transit
activities through eligible recipients for shared-ride on-demand
service to the general public or to a segment of the public for certain
eligible transit services.
C. Chapter III--General Program Information
The proposed circular contains several updates regarding the
apportionment of program funds for Sections 5307, 5337, and 5339 to
reflect statutory and regulatory changes. Specifically, the percentages
of Section 5307 funds available for state safety oversight programs and
small transit intensive cities have been amended. Furthermore, the
proposed circular includes additional formula factors for
apportionments for the Section 5307 and 5339 programs. Chapter III also
clarifies and highlights recipients' flexibility to reallocate or
transfer apportionments, including consolidating formula program funds
for use in insular areas. Lastly, the circular sets forth the
circumstances in which certain human resources and training supportive
services are eligible costs under 49 U.S.C. 5314(b)(4) to assist
individuals in the enrollment and completion of workforce training,
including child and dependent care, tools, work clothing, costs of
apprenticeship, and required pre-employment training.
D. Chapter IV--Eligible Projects and Requirements
The proposed circular contains several changes to the programs'
eligibility and requirements to include additional flexibilities
provided by law. Specifically, FTA proposes additional flexibility in
financial assistance eligibility, namely that Section 5307
[[Page 44442]]
funds that are apportioned to a UZA based on service metrics for a
variety of public transportation modes may be expended on eligible
activities for other modes. Additionally, funds apportioned under 49
U.S.C. 5340 may be expended on the same activities that are eligible
under Section 5307 for each recipient. FTA further clarifies that
Section 5337 funds apportioned to a UZA based on the presence of high
intensity motorbus may also be expended on high intensity fixed
guideway projects. Lastly, the proposed circular explains that while
funds are apportioned based on the presence of high intensity motorbus
and high intensity fixed guideway segments in revenue service for at
least seven years, the funds may be used on any part of a recipient's
fixed guideway or high intensity motorbus system.
The proposed circular includes guidance on additional flexibility
in program eligibility provided by the FAST Act and BIL, including
additional eligibility for a recipient to use up to 20 percent of its
annual Section 5307 apportionment at the capital project 80/20 Federal/
local share ratio to pay for complementary paratransit services,
providing for innovative procurement tools for acquiring rolling stock,
accounting for the expansion of transit facilities to accommodate clean
fuel vehicles, and providing funding for programs addressing public
transportation human resource needs.
The proposed circular reemphasizes procedural safeguards in
accounting for the capital cost of contracting to prevent recipients
from utilizing this method for publicly funded assets and thus
receiving reimbursement for the asset from two or more public sources
and potentially resulting in overlapping federal interests. The capital
cost of contracting language is also modified to clarify the exclusion
of Section 5337 and 5339(a) funds from use toward capital cost of
contracting except for what is specifically eligible under both
programs (e.g., leasing of vehicles, equipment, and facilities for
Sections 5337 and 5339, and maintenance for Section 5337).
FTA also proposes updating language to account for multiple
modifications to the special operations rule for large UZAs due to
statutory changes, including applicability of vehicles in demand-
response service and an exception to the special rule that allows up to
a ten percent greater operating assistance cap for recipients. In
addition, FTA updated the list of operating expenses eligible for FTA
operating assistance, including public transportation security
operating assistance projects. The proposed circular also modifies the
list of eligible activities for Job Access and Reverse Commute (JARC)
projects.
E. Chapter V--Planning & Project Development
The proposed circular amends various provisions regarding planning
and project development, including clarifications of how transportation
improvement programs and statewide transportation improvement programs
should address projects outside of UZAs but within the metropolitan
planning area. The circular explicitly identifies MPOs as the
responsible party for the development and adoption of the metropolitan
transportation plan and transportation improvement program, clarifying
that each must cover a minimum twenty-year horizon and four-year
horizon, respectively.
FTA proposes to remove language in the Section 5339 circular that
restricts application for funds directly to designated recipients only
on behalf of subrecipients, as section 3017 of the FAST Act authorized
state and local government entities operating fixed route bus service
to be direct recipients of FTA grants, regardless of their status as
designated recipients.
The proposed section titled ``Program of Projects and Public
Participation Requirements'' clarifies that recipients must submit the
appropriate documentation demonstrating recipients complied with a
local project selection process through an amendment to the relative
Transportation Improvement Program (TIP)/Statewide Transportation
Improvement Program (STIP). The section also clarifies that recipients
must provide FTA with documentation of their amendment of a Program of
Projects, TIP, and STIP to reflect applicable changes when the
recipient proposes an award modification deviating from an applicable
Program of Projects, TIP, or STIP.
In the section titled, ``Availability of FHWA Flexible Funds for
Transit Projects,'' FTA describes how recipients may flex funds from
FHWA to FTA, which may only be used for activities eligible under both
the transferring and receiving programs. Funds transferred to FTA must
be administered under applicable FTA program requirements. This section
includes a list of FHWA programs from which funds may be flexed for
planning, capital, or operating projects, and has been updated to
reflect changes in the law since the last circular update.
The proposed circular seeks to further reduce the administrative
burden on recipients by consolidating reporting requirements, including
allowing information reporting on the spending toward associated
transit improvements, required under 49 U.S.C. 5307(c)(1)(K), to be
included within other federally-required reports.
Under ``Public Transportation Security Projects,'' the proposed
circular notes that some security projects may also satisfy the
separate requirement that each recipient in a UZA of 200,000 people or
more use 0.75 percent of Section 5307 funds on safety projects.
In the section on ``Transit Asset Management Requirements,'' FTA
updated its guidance to reflect changes in 49 U.S.C. 5326 and 49 CFR
625, including clarifying the relationship between transit asset
management (TAM) plans and recipients' use of Section 5337 funds.
In the section titled ``Public Transportation Safety
Requirements,'' the proposed circular contains updates reflecting
statutory and regulatory updates, including 49 U.S.C. 5329 requirements
for a National Public Transportation Safety Plan (49 CFR 670),
requirements for Public Transportation Safety Certification Training
Programs (49 CFR 672), requirements for Public Transportation Agency
Safety Plans (49 CFR 673), and requirements for State Safety Oversight
Agencies (49 CFR 674).
The circular includes proposed language addressing pre-award
authority, including providing automatic pre-award authority for
certain types of capital expenses. The proposed circular also clarifies
that recipients may incur capital expenses under pre-award authority
for projects that clearly meet the criteria for a categorical exclusion
under 23 CFR 771.118, though they do so at their own risk.
F. Chapter VI--Program Management and Administrative Requirements
FTA proposes updates to reflect statutory changes and to expand the
explanation of various certifications required for the Urbanized Area
Formula Grant Programs. Specifically, the proposed circular more
comprehensively describes the requirement and circumstances under which
Section 5307 recipients must charge seniors and persons with
disabilities during nonpeak hours no more than half the peak fare.
G. Appendices
FTA proposes consolidating and revising various appendices within
the three formula circulars as they are shown within the new proposed
circular. As such, appendices have been relabeled, updated, or removed.
For
[[Page 44443]]
example, the proposed ``Appendix B: Preventive Maintenance (Section
5307 and 5337)'' was previously Appendix E in the current Section 5307
circular (C 9030.1).
After a review and consideration of the comments provided on this
proposed circular, FTA will publish the final circular on its website.
Nuria I. Fernandez,
Administrator.
[FR Doc. 2023-14793 Filed 7-11-23; 8:45 am]
BILLING CODE 4910-57-P
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