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Rural Areas Formula Grant Programs Guidance Proposed Circular Publication: Federal Register Agency: Federal Transit Administration Byline: Veronica Vanterpool Date: 4 April 2024 Subjects: American Government  , Buses
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[Federal Register Volume 89, Number 66 (Thursday, April 4, 2024)]
[Notices]
[Pages 23618-23621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07107]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2024-0004]
Rural Areas Formula Grant Programs Guidance Proposed Circular
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Notice of availability of proposed circular updates and request
for comments.
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SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its website, proposed guidance in the form of an updated
circular, to assist recipients in their implementation of the Rural
Areas Formula Program and the rural component of the Buses and Bus
Facilities Program. The purpose of these proposed updates is to provide
recipients of FTA financial assistance with updated guidance on program
administration. The proposed revisions to these circulars are a result
of changes in the law since the last updates to both the Rural Areas
and Buses and Bus Facilities circulars. By this notice, FTA invites
public comment on the proposed circular.
DATES: Comments must be submitted by June 3, 2024. 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-2024-0004.
All electronic submissions must be made to the U.S. Government
electronic site at https://www.regulations.gov/.
(1) Federal eRulemaking Portal: Go to https://www.regulations.gov/
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-2024-0004) 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 https://www.regulations.gov/ including any personal information provided and
will be available to internet users. For information on DOT's
compliance with the Privacy Act, please visit https://www.transportation.gov/privacy.
Docket: For access to the docket to read background documents and
comments received, go to https://www.regulations.gov/ 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, Jay Lindsey,
Office of Program Management, phone, (202)
[[Page 23619]]
366-6299 or email, Jay.Lindsey@dot.gov. For legal questions, Bonnie
Graves, Office of Chief Counsel, phone, (202) 366-0944, or email,
Bonnie.Graves@dot.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overview
C. Chapter III--General Program Information
D. Chapter IV--Eligible Projects and Requirements
E. Chapter V--Planning and Program Development
F. Chapter VI--Program Management and Administrative
Requirements
G. Chapter VII--State Management Plan
H. Chapter VIII--Appalachian Development Public Transportation
Assistance Program (ADTAP)
I. Chapter IX--Intercity Bus
J. Chapter X--Rural Transportation Assistance Program (RTAP)
K. Chapter XI--Public Transportation on Indian Reservations
L. Appendices
I. Overview
The Federal Transit Administration's (FTA) proposed circular,
``Rural Areas Formula Grant Programs Guidance,'' C 9040.1H, is a
consolidation of guidance for the administration and preparation of
grant applications for the Rural Areas Formula Grants Program under 49
U.S.C. 5311 (FTA circular 9040.1) and the rural area component of the
Grants for Buses and Bus Facilities Program under 49 U.S.C. 5339(a)
(FTA circular 5100.1). Additionally, this updated circular incorporates
provisions of the FAST Act (Pub. L. 114-94), the Infrastructure
Investment and Jobs Act (IIJA) (Pub. L. 117-58), and other changes in
law, and includes program-specific guidance for these formula programs.
Additional requirements for all grant programs are identified in FTA's
Award Management Requirements circular 5010.1. The availability of the
proposed 5010 circular and request for public comment was published in
the Federal Register (89 FR 11334, Feb. 14, 2024) and is posted on
https://www.regulations.gov in Docket FTA-2024-0003.
The proposed update to circular 9040.1 consolidates and summarizes
programmatic information, streamlines pre-existing guidance from the
two program circulars, and reduces duplication of information provided
between the Rural Areas Formula Program 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 5010.1. Furthermore, the proposed circular incorporates
statutory changes and clarifies a number of policy issues as
interpreted and applied by FTA. Statutory changes for section 5311
include additional sources of local share; in-kind match for intercity
bus service; and fund allocations for tribes. Statutory changes for
section 5339(a) include the application of section 5311 requirements to
section 5339 grants in rural areas; additional source for local share;
additional eligible entities; and use of procurement tools authorized
under section 3019 of the FAST Act. Policy clarifications address
topics in the existing program circulars, including consolidation of
grants to insular areas; 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; and period of
availability to obligate funds flexed to FTA formula programs from the
Federal Highway Administration (FHWA).
In addition to statutory and policy updates, the Office of
Management and Budget (OMB) issued 2 CFR part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, also known as the Uniform Guidance, in December
2013, which superseded the Common Grant Rule, formerly codified at 49
CFR parts 18 and 19. Due to the timing of the last circular update and
the effective date of the Uniform Guidance, FTA circular 9040.1G
continued to reference 49 CFR parts 18 and 19. FTA has updated these
references, including definitions, in proposed circular 9040.1H.
This notice provides a summary of proposed changes to the current
circular 9040.1G, ``Formula Grants for Rural Areas: Program Guidance
and Grant Application Instructions.'' FTA invites public comment on the
substance and format of the proposed circular.
A. Chapter I--Introduction and Background
Due to the consolidation of the two program circulars, definitions
and program descriptions were compared and revised for consistency with
proposed updates to circular 5010.1E ``Award Management Requirements,''
circular 9030.1E ``Formula Grants for Urbanized Areas,'' and circular
9070.1G ``Enhanced Mobility of Seniors and Individuals with
Disabilities.'' FTA proposes to amend the definitions section for
consistency, clarification, and to reflect changes in statutes and
other authorities. For example, FTA has updated the following terms:
``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. ``Clean Fuel Bus'' recognizes low or no emissions
technologies other than full electric and hybrid electric buses.
``Rehabilitate'' is expanded to include applicability to bus 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. 5339. ``Urbanized Area'' is updated to
reflect changes in designation by the U.S. Census Bureau, which no
longer utilizes ``Urbanized Area'' (UZA) but instead uses ``Urban
Area,'' as defined by the Secretary of Commerce. ``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 varies according to the type of asset in question.
B. Chapter II--Program Overview
Chapter II of the proposed circular contains information related to
program goals, State and FTA roles in program administration, and
relationship of the section 5311 program to other programs. These
sections are in the current 9040.1G circular and the language is
generally unchanged, with updates where appropriate. Consistent with
the consolidation of section 5339 program requirements into the new
circular, the updated chapter contains information related to section
5339 as well as section 5311. FTA proposes to add a section on program
measures with broad measures for both section 5311 and section 5339. In
addition, FTA proposes a new section on program oversight.
C. Chapter III--General Program Information
FTA proposes substantially reorganizing the material found in
Chapters III-V of circular 9040.1G, consistent with the reorganization
of the Urbanized Area Program circular. Material in Chapters III-V of
circular 9040.1G not moved to circular 5010.1 generally is in Chapters
III-VI of the proposed circular. For example, some of the information
contained in Chapter III of the current circular remains in this
chapter, and other information moves to Chapter IV. Eligible
recipients, apportionment of funds, and local share of project costs
remain in Chapter III,
[[Page 23620]]
but in a different order. FTA has clarified in the updated circular
that local share is waived for insular areas. FTA proposes moving
eligible activities, including discussions related to job access/
reverse commute, operating, administrative, and capital expenses, to
Chapter IV. A new section in Chapter III discusses the eligibility of
rural funds for use in urbanized areas. In addition, we have included a
section on taxis and transportation network companies, and when these
entities may be subrecipients or contractors. This section has been in
FTA's 9070.1 circular for many years and is slightly modified for the
section 5311 program. FTA has historically treated transportation
network companies (TNCs) the same as taxis, given they both provide on-
demand, exclusive ride service, primarily in automobiles. Where taxis
and TNCs provide shared ride service, they may be subrecipients.
Exclusive-ride companies may be contractors for job access reverse
commute (JARC) service under section 5311, as eligible JARC activities
include service that does not meet the definition of ``public
transportation'' in 49 U.S.C. 5302(15).
D. Chapter IV--Eligible Projects and Requirements
Chapter IV in circular 9040.1G is titled ``Program Development.''
As stated above, FTA proposes moving some of the information found in
Chapter III of the existing circular to Chapter IV. In addition, we
propose moving much of the information found in Chapter IV of circular
9040.1G to Chapter V of circular 9040.1H. Chapter IV in the updated
circular includes information related to eligible projects. Given the
consolidation of the Rural Areas and Buses and Bus Facilities
circulars, this chapter specifies which activities are eligible under
each of the programs. Capital leases to replace vehicles are eligible,
and in the event a contractor is used to provide service, the actual
costs of a capital lease can be removed from the operating contract and
funded at an 80 percent federal share, or the recipient can utilize
capital cost of contracting. FTA proposes two new sections: employee
training expenses, and interest and debt financing as an eligible cost.
FTA proposes moving information related to certifications and
assurances, pre-award authority and grant award and project approval to
FTA circular 5010.1.
E. Chapter V--Planning and Program Development
The proposed circular moves much of the information found in
Chapter V of circular 9040.1G, to FTA's circular 5010.1, Award
Management Requirements, including information on procurement,
financial management, data universal numbering system (DUNS), system
for awards management (SAM), electronic clearinghouse operation (ECHO),
and other topics that apply to all FTA grant programs. Most of the
information not moved to circular 5010.1 is moved to Chapter VI of the
proposed circular 9040.1H, including satisfactory continuing control,
state financial records, reporting requirements and the state
management plan.
FTA proposes moving much of the information in Chapter IV of
circular 9040.1G, including fair and equitable distribution of funds,
planning requirements, performance-based planning, intercity bus
consultation, program of projects, to proposed Chapter V of circular
9040.1H. Chapter V includes a reference to pre-award authority, but the
full discussion is included in FTA Circular 5010.1. The proposed
Chapter V also includes information related to coordinated planning,
availability of FHWA funds flexed to transit projects, transit asset
management requirements, public transit safety requirements, and
environmental considerations. As with other chapters, FTA has updated
this chapter to include references to section 5339 as appropriate. The
chapter contains updates and clarifications to the program of projects
and coordinated planning requirements. FTA proposes updating the
section describing flex funding from FHWA and includes a period of
availability for funds that are transferred. FTA proposes moving
sections on transit asset management and safety from Chapter XI of
circular 9040.1G to this chapter and has updated the text consistent
with changes in law and with the transit asset management and safety
regulations issued after the last circular update.
F. Chapter VI--Program Management and Administrative Requirements
Chapter VI of circular 9040.1G is the state management plan; FTA
proposes moving this to Chapter VII. The new Chapter VI contains
information on satisfactory continuing control and responsibility,
state financial records, construction management and oversight,
reporting requirements, state management plan, and FTA state management
plan review. FTA proposes adding references to section 5339 as
appropriate; the substance of these sections is substantially similar
to these sections in the current circulars.
G. Chapter VII--State Management Plan
Proposed Chapter VII is substantially similar to Chapter VI of
circular 9040.1G, except it adds references to section 5339 and removes
the section on State Management Plan Reviews, which is moved to Chapter
VI. Thus, Chapter VII includes general information, a statement
regarding the purpose of state management plans, the contents of state
management plans, and making state management plan revisions.
H. Chapter VIII--Appalachian Development Public Transportation
Assistance Program (ADTAP)
Proposed Chapter VIII is substantially similar to Chapter VII of
circular 9040.1G. FTA proposes removing text related to eligible
projects, local share, and planning requirements, and instead includes
the statement that all requirements and eligibilities for section 5311
apply to ADTAP funds.
I. Chapter IX--Intercity Bus
Proposed Chapter IX is substantially similar to Chapter VIII in the
current FTA circular 9040.1G, with the exceptions stated here. FTA has
updated the section on in-kind match to reflect a change in the law.
Intercity bus projects that include both feeder service and an
unsubsidized segment of intercity bus service to which the feeder
service connects, may use all operating and capital costs of
unsubsidized segments, whether or not offset by revenue from such
service, as an in-kind match for the operating costs of connecting
rural intercity bus feeder service funded under section 5311(f). This
section provides an example of how to calculate this in-kind match. In
the section describing eligible services and service areas, FTA
clarifies long-standing policy that a service is considered ``commuter
service'' (and therefore does not meet the 15 percent intercity bus
requirement of section 5311(f)) if at least 50 percent of passengers
make a return trip on the same day across all service runs for one
year. Finally, FTA has added text stating that private operators
providing intercity service using vehicles other than over-the-road-
buses are subject to the U.S. DOT Americans with Disabilities Act (ADA)
regulations governing fixed route or demand responsive service by
private entities.
J. Chapter X--Rural Transportation Assistance Program (RTAP)
Proposed Chapter X is substantially similar to Chapter IX in
circular 9040.1G, except the section on the national program is
enhanced to include more specific elements.
[[Page 23621]]
K. Chapter XI--Public Transportation on Indian Reservations
FTA proposes moving most of the content of Chapter XI (``Other
Provisions'') in circular 9040.1G to circular 5010.1, as the cross-
cutting requirements summarized in that chapter apply to most or all of
FTA's grant programs. Proposed Chapter XI is substantially similar to
Chapter X in circular 9040.1G, with the exceptions stated here. There
is a new paragraph on tribal self-governance, and how funds provided to
a tribe with a self-governance compact between the tribe and U.S. DOT
will be administered. In the section on eligible services and service
areas, FTA clarifies that funds provided to tribes must be used to
serve the general population in rural areas, and not just tribal
members. In the section on matching requirements, the requirement has
changed from an automatic 10 percent local match requirement for
competitive funds to a variance depending on the allocation year. Local
match requirements will be stated in notices of funding opportunity.
Finally, FTA has updated the section related to indirect cost rate.
L. Appendices
FTA proposes to move most of the appendices currently found in
circular 9040.1G to FTA circular 5010.1. The remaining appendices
include Appendix A, Procedures Related to Flexible Funding, and
Appendix B, Sample Intercity Bus Certification. Appendix A is updated
consistent with changes in the law and adding a period of availability
to funds flexed from FHWA. Appendix B is substantially unchanged from
the intercity bus certification appendix in circular 9040.1G.
FTA invites public comment on the structure and content of proposed
circular 9040.1H.
After a review and consideration of the comments provided on this
proposed circular, FTA will publish the updated circular on its website
and will announce the availability of the updated circular and the
response to comments in the Federal Register.
Note that on October 5, 2023, the Office of Management and Budget
(OMB) published a notice of proposed rulemaking in the Federal Register
to revise 2 CFR part 200 and other OMB guidance for grants and
agreements (88 FR 69390). FTA intends to incorporate any changes in 2
CFR part 200 to the extent OMB issues the final rule before FTA
publishes the final updated circular.
Veronica Vanterpool,
Acting Administrator.
[FR Doc. 2024-07107 Filed 4-3-24; 8:45 am]
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