[Federal Register: January 28, 2008 (Volume 73, Number 18)]
[Notices]               
[Page 4955-5077]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja08-143]                         
 

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Part II





Department of Transportation





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Federal Transit Administration



 FTA Fiscal Year 2008 Apportionments and Allocations and Program 
Information; Notice


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

 
FTA Fiscal Year 2008 Apportionments and Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: Division K of the ``Consolidated Appropriations Act, 2008'' 
(Pub. L. 110-161), signed into law by President Bush on December 26, 
2007, makes funds available for all of the surface transportation 
programs of the Department of Transportation (DOT) for the Fiscal Year 
(FY) ending September 30, 2008. This notice provides information on the 
FY 2008 funding available for the Federal Transit Administration (FTA) 
assistance programs, and provides program guidance and requirements, 
and information on several program issues important in the current 
year. The notice also includes tables that show certain discretionary 
programs unobligated funding from previous years that will be available 
in FY 2008.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact Mary Martha Churchman, Director, Office of Transit 
Programs, at (202) 366-2053. Please contact the appropriate FTA 
regional office for any specific requests for information or technical 
assistance. The Appendix at the end of this notice includes contact 
information for FTA regional offices. An FTA headquarters contact for 
each major program area is also included in the discussion of that 
program in the text of the notice.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. FY 2008 Funding for FTA Programs
    A. Fiscal Year 2008 Funding Based on Consolidated Appropriations 
Act, 2008 and Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (SAFETEA-LU)
    B. Program Funds Set-Aside for Oversight
III. FY 2008 FTA Key Program Initiatives and Changes
    A. SAFETEA-LU Implementation
    B. Planning Emphasis Areas
    C. Earmarks and Competitive Grant Opportunities
    D. Changes in Flexible Funding Procedures
    E. Changes in Match for Biodiesel Vehicles and Hybrid Retrofits
    F. National Transit Database (NTD) Strike Policy
IV. FTA Programs
    A. Metropolitan Planning Program (49 U.S.C. 5303)
    B. Statewide Planning Program (49 U.S.C. 5304)
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Clean Fuels Grant Program (49 U.S.C. 5308)
    E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization
    F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-
Related Facilities
    G. Capital Investment Program (49 U.S.C. 5309)--New Starts
    H. Special Needs of Elderly Individuals and Individuals With 
Disabilities Program (49 U.S.C. 5310)
    I. Nonurbanized Area Formula Program (49 U.S.C. 5311)
    J. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    K. Public Transportation on Indian Reservation Program (49 
U.S.C. 5311(c))
    L. National Research Program (49 U.S.C. 5314)
    M. Job Access and Reverse Commute Program (49 U.S.C. 5316)
    N. New Freedom Program (49 U.S.C. 5317)
    O. Alternative Transportation in Parks and Public Lands (49 
U.S.C. 5320)
    P. Alternatives Analysis Program (49 U.S.C. 5339)
    Q. Growing States and High Density States Formula Factors (49 
U.S.C. 5340)
    R. Over-the-Road Bus Accessibility Program (49 U.S.C. 5310 note)
V. FTA Policy and Procedures for FY 2008 Grants Requirements
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FTA FY 2008 Annual List of Certifications and Assurances
    D. FHWA Funds Used for Transit Purposes
    E. Grant Application Procedures
    F. Payments
    G. Oversight
    H. Technical Assistance
Tables
    1. FTA FY 2008 APPROPRIATIONS AND APPORTIONMENTS FOR GRANT 
PROGRAMS
    2. FTA FY 2008 SECTION 5303 METROPOLITAN TRANSPORTATION PLANNING 
PROGRAM AND SECTION 5304 STATEWIDE TRANSPORTATION PLANNING PROGRAM 
APPORTIONMENTS
    3. FTA FY 2008 SECTION 5307 AND SECTION 5340 URBANIZED AREA 
APPORTIONMENTS
    4. FTA FY 2008 SECTION 5307 APPORTIONMENT FORMULA
    5. FTA FY 2008 FORMULA PROGRAMS APPORTIONMENTS DATA UNIT VALUES
    6. FTA FY 2008 SMALL TRANSIT INTENSIVE CITIES PERFORMANCE DATA 
AND APPORTIONMENTS
    7. FTA FY 2008 SECTION 5308 CLEAN FUELS PROGRAM ALLOCATIONS
    8. FTA PRIOR YEAR UNOBLIGATED SECTION 5308 CLEAN FUELS 
ALLOCATIONS
    9. FTA FY 2008 SECTION 5309 FIXED GUIDEWAY MODERNIZATION 
APPORTIONMENTS
    10. FTA FY 2008 FIXED GUIDEWAY MODERNIZATION PROGRAM 
APPORTIONMENT FORMULA
    11. FTA FY 2008 SECTION 5309 BUS AND BUS-RELATED ALLOCATIONS
    12. FTA PRIOR YEAR UNOBLIGATED SECTION 5309 BUS AND BUS-RELATED 
FACILITIES ALLOCATIONS AS OF SEPTEMBER 30, 2007
    13. FTA FY 2008 SECTION 5309 NEW STARTS ALLOCATIONS
    14. FTA PRIOR YEAR UNOBLIGATED SECTION 5309 NEW STARTS 
ALLOCATIONS
    15. FTA FY 2008 SPECIAL NEEDS FOR ELDERLY INDIVIDUALS AND 
INDIVIDUALS WITH DISABILITIES APPORTIONMENTS
    16. FTA FY 2008 SECTION 5311 AND SECTION 5340 NONURBANIZED 
APPORTIONMENTS, AND SECTION 5311(b)(3) RURAL TRANSIT ASSISTANCE 
PROGRAM (RTAP) APPORTIONMENTS
    17. FTA FY 2008 NATIONAL RESEARCH PROGRAM ALLOCATIONS
    18. FTA FY 2008 SECTION 5316 JOB ACCESS AND REVERSE COMMUTE 
(JARC) APPORTIONMENTS
    19. FTA PRIOR YEAR UNOBLIGATED JOB ACCESS AND REVERSE COMMUTE 
ALLOCATIONS
    20. FTA FY 2008 SECTION 5317 NEW FREEDOM APPORTIONMENTS
    21. FTA PRIOR YEAR UNOBLIGATED SECTION 5339 ALTERNATIVE ANALYSIS 
ALLOCATIONS
Appendix

I. Overview

    This document apportions or allocates the FY 2008 funds available 
under Division K of the Consolidated Appropriations Act, 2008 (Pub. L. 
110-161, December 26, 2007), among potential program recipients 
according to statutory formulas in 49 U.S.C. Chapter 53 or 
congressional designations in Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The notice 
does not include allocations of projects designated bus category funds 
or alternative analysis funds in the committee reports accompanying the 
FY 2008 Consolidated Appropriations Act. It also does not include 
extended or redirected project funds identified in those reports or the 
most recent congressional clarification letter dated December 19, 2007. 
FTA will issue a supplemental notice at a later date regarding these 
projects.
    For each FTA program included in this notice, we have provided 
relevant information on the FY 2008 funding currently available, 
program requirements, period of availability, and other related program 
information and highlights, as appropriate. A separate section of the 
document provides information on program requirements

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and guidance that are applicable to all FTA programs.

II. FY 2008 Funding for FTA Programs

A. Funding Based on Division K of the Consolidated Appropriations Act, 
2008 (Pub. L. 110-161, December 26, 2007) and SAFETEA-LU Authorization

    Division K of the Consolidated Appropriations Act, 2008 (Pub. L. 
110-161, December 26, 2007); hereafter called the Consolidated 
Appropriations Act, 2008, provides general funds and obligation 
authority for trust funds that total $9.5 billion for FTA programs, 
through September 30, 2008. Table 1 of this document shows the funding 
for the FTA programs, as provided for in the Consolidated 
Appropriations Act, 2008, and the reallocation to the programs of any 
prior year unobligated funds. All Formula Programs and the section 5309 
Bus and Bus Facilities Program are funded entirely from the Mass 
Transit Account of the Highway Trust Fund in FY 2008. The section 5309 
New Starts program, the Research program, and FTA administrative 
expenses are funded by appropriations from the General Fund of the 
Treasury.
    Congress has enacted a full year Consolidated Appropriations Act, 
2008. This Federal Register notice includes tables of apportionments 
and allocations for FTA programs based on that Act. Allocations based 
on SAFETEA-LU are also included for some discretionary programs. In 
addition, at a later date, FTA may allocate remaining discretionary 
funds not earmarked in SAFETEA-LU or that were designated in the report 
accompanying the Consolidated Appropriations Act, 2008.

B. Program Funds Set-Aside for Project Management Oversight

    FTA uses a percentage of funds appropriated to certain FTA programs 
for program oversight activities conducted by the agency. The funds are 
used to provide necessary oversight activities, including oversight of 
the construction of any major capital project under these statutory 
programs; to conduct safety and security, civil rights, procurement, 
management, planning certification reviews, financial reviews and 
audits, as well as evaluations and analyses of grantee specific 
problems and issues; and to provide technical assistance to correct 
deficiencies identified in compliance reviews and audits.
    Section 5327 of title 49 U.S.C., authorizes the takedown of funds 
from FTA programs for project management oversight. Section 5327 
provides oversight takedowns at the following levels: 0.5 percent of 
Planning funds, 0.75 percent of Urbanized Area Formula funds, 1 percent 
of Capital Investment funds, 0.5 percent of Special Needs of Elderly 
Individuals and Individuals with Disabilities formula funds, 0.5 
percent of Nonurbanized Area Formula funds, and 0.5 percent of 
Alternative Transportation in the Parks and Public Lands funds.

III. FY 2008 FTA Program Initiatives and Changes

A. SAFETEA-LU Implementation

    In FY 2008, FTA continues to focus on implementation of SAFETEA-LU 
through issuance of new and revised program guidance and regulations. 
Before any documents that place binding obligations on grantees are 
finalized and issued, FTA makes them available for public comment. We 
encourage grantees to regularly check the FTA Web site at http://
www.fta.dot.gov and the U.S. Government docket management Web site at 
http://regulations.gov for new issuances and to comment to the docket 
established for each document on relevant issues.

B. Planning Emphasis Areas

    In recognition of the priority planning organizations and grantees 
are giving to the implementation of the new and changed provisions of 
SAFETEA-LU, FTA and the Federal Highway Administration (FHWA) are not 
issuing new planning emphasis areas for FY 2008, and have rescinded 
planning emphasis areas from prior years.

C. Earmarks and Competitive Grant Opportunities

    SAFETEA-LU contained statutory earmarks under several programs, and 
these are listed in the tables in this Notice. FTA will honor the 
statutory earmarks. In addition, this notice includes tables of 
unobligated balances for earmarks from previous years under the Bus and 
Bus Facilities Program, the New Starts Program, the Clean Fuels 
Program, and the Alternatives Analysis Program. FTA will continue to 
honor those earmarks. FTA will supplement this notice, at a later date, 
to provide any additional discretionary allocations of funds made 
available in FY 2008 and any prior year earmarks that FTA determines to 
extend or reprogram based on language in the report that accompanied 
the Consolidated Appropriations Act, 2008, or the Congressional 
clarification letter of December 19, 2007, once the Department has 
examined the requests.

D. Changes in Flexible Funding Procedures

    Obligation authority for flexible funds, high priority projects and 
other transit projects in Title 23 U.S.C. is transferred to FTA when it 
is determined that FTA will administer the project. The liquidating 
cash, however, is transferred between Federal accounts only as needed 
to ensure that adequate funds are available for disbursement on a 
timely basis. In order to track the cash flow more closely, FTA no 
longer combines funds transferred from FHWA into a single grant with 
FTA funds in the program to which they are transferred. FTA has 
established codes and procedures for grants involving funds transferred 
from FHWA. Grantees can contact the appropriate regional office for 
assistance.

E. Changes in Match for Biodiesel Vehicles and Hybrid Retrofits

    Section 164 of the Consolidated Appropriations Act, 2008, allows a 
90 percent Federal share for biodiesel buses and for the net capital 
cost of factory-installed or retrofitted hybrid electric propulsion 
systems and any equipment related to such a system. This increased 
federal share is a cross-cutting provision and is applicable across FTA 
programs for any grants awarded during FY 2008 regardless of what 
fiscal year funding is used. Grantees may apply for a 90 percent 
Federal share for the entire cost of a biodiesel bus, but only for the 
cost of the propulsion system and related equipment in the case of the 
hybrid electric systems, not for 90 percent of the cost of the entire 
vehicle. In lieu of calculating the costs of the equipment separately, 
grantees may apply for 83 percent of the cost of the vehicle.

F. National Transit Database (NTD) Strike Policy

    It has previously been FTA's policy not to make adjustments to the 
NTD data used for the apportionment of urbanized area formula grants 
for purposes of offsetting the effects of strikes, labor disputes, or 
work stoppages. FTA has changed this policy, retroactive to NTD Report 
Year (RY) 2005 data. FTA will now make ``hold harmless'' adjustments in 
the NTD data used for the apportionment of urbanized area formula 
grants to offset the effects of strikes, labor disputes, or work 
stoppages. One agency received such an adjustment to their RY 2006 NTD 
data for use in the FY 2008 apportionment. Any other agency that has 
had a valid strike, labor dispute or work stoppage

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during RY 2005, RY 2006, or RY 2007 may request an adjustment to their 
RY 2007 data for use in the FY 2009 apportionment. Agencies 
experiencing a valid strike, labor dispute, or work stoppage in 
subsequent years must file a request for such an adjustment along with 
their NTD submission for that year.
    Instructions for requesting a ``hold harmless'' adjustment can be 
found in the 2007 NTD Reporting Manual, available at http://
www.ntdprogram.gov, under the section on ``Waivers.''

IV. FTA Programs

    This section of the notice provides available FY 2008 funding and 
other important program-related information for the three major FTA 
funding accounts included in the notice (Formula and Bus Grants, 
Capital Investment Grants, and Research). Of the 17 separate FTA 
programs contained in this notice that fall under the major program 
area headings, the funding for ten is apportioned by statutory or 
administrative formula. Funding for the other seven is allocated on a 
discretionary or competitive basis.
    Funding and other important information for each of the 17 programs 
is presented immediately below. This includes program apportionments or 
allocations, certain program requirements, length of time FY 2008 
funding is available to be obligated, and other significant program 
information pertaining to FY 2008, including the availability of 
competitive opportunities under several programs.

A. Metropolitan Planning Program (49 U.S.C. 5303) (Table 2)

    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 referenced in 49 CFR Part 613. State Departments of 
Transportation are direct recipients of funds, which are then allocated 
to Metropolitan Planning Organizations (MPOs) by formula, for planning 
activities that support the economic vitality of the metropolitan area, 
especially by enabling global competitiveness, productivity, and 
efficiency; increasing the safety and security of the transportation 
system for motorized and non-motorized users; increasing the 
accessibility and mobility options available to people and for freight; 
protecting and enhancing the environment, promoting energy 
conservation, and improving quality of life; enhancing the integration 
and connectivity of the transportation system, across and between 
modes, for people and freight; promoting efficient system management 
and operation; and emphasizing the preservation of the existing 
transportation system. For more about the Metropolitan Planning 
Program, contact Candace Noonan, Office of Planning and Environment at 
(202) 366-1648.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $88,510,400 to 
the Metropolitan Planning Program (49 U.S.C. 5305(d) to support 
metropolitan transportation planning activities set forth in 49 U.S.C. 
5303. The total amount apportioned for the Metropolitan Planning 
Program (to States for MPOs' use in urbanized areas (UZAs) is 
$88,229,721, as shown in the table below, after the deduction for 
oversight and the addition of prior year reapportioned funds.

              Metropolitan Transportation Planning Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................     $88,510,400
Oversight Deduction.....................................        -442,552
Prior Year Funds Added..................................         161,873
                                                         ---------------
  Total Apportioned.....................................      88,229,721
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
2. Basis for Formula Apportionments
    As specified in law, 82.72 percent of the amounts authorized for 
Section 5305 are allocated to the Metropolitan Planning program. FTA 
allocates Metropolitan Planning funds to the States according to a 
statutory formula. Eighty percent of the funds are distributed to the 
States as a basic allocation based on each State's UZA population, 
based on the most recent decennial Census. The remaining 20 percent is 
provided to the States as a supplemental allocation based on an FTA 
administrative formula to address planning needs in the larger, more 
complex UZAs. The amount published for each State is a combined total 
of both the basic and supplemental allocation.
3. Program Requirements
    The State allocates Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for projects included in an annual 
work program (the Unified Planning Work Program, or UPWP) that includes 
both highway and transit planning projects. Each State has either 
reaffirmed or developed, in consultation with their MPOs, a new 
allocation formula, as a result of the 2000 Census. The State 
allocation formula may be changed annually, but any change requires 
approval by the FTA regional office before grant approval. Program 
guidance for the Metropolitan Planning Program is found in FTA Circular 
C8100.1B, Program Guidance and Application Instructions for 
Metropolitan Planning Program Grants, dated October 25, 1996. FTA is in 
the process of updating this circular to incorporate references to the 
new and changed planning requirements as set forth in SAFETEA-LU and 
implementing regulations.
4. Period of Availability
    The funds apportioned under the Metropolitan Planning program 
remain available to be obligated by FTA to recipients for four fiscal 
years which includes the year of apportionment plus three additional 
years. Any apportioned funds that remain unobligated at the close of 
business on September 30, 2011, will revert to FTA for reapportionment 
under the Metropolitan Planning Program.
5. Other Program or Apportionment Related Information and Highlights
    a. Planning Emphasis Areas (PEAs). FTA and FHWA are not issuing new 
PEAs this year, and are rescinding PEAs issued in prior years, in light 
of the priority given to implementation of SAFETEA-LU planning and 
program provisions.
    b. Consolidated Planning Grants. FTA and FHWA planning funds can be 
consolidated into a single consolidated planning grant (CPG), awarded 
by either FTA or FHWA. The CPG eliminates the need to monitor 
individual fund sources, if several have been used, and ensures that 
the oldest funds will always be used first. Unlike ``flex funds,'' 
State planning funds from FHWA may be combined with FTA planning funds 
in a single grant. Alternatively FTA planning funds can be transferred 
to FHWA for administration.
    Under the CPG, States can report metropolitan planning expenditures 
(to comply with the Single Audit Act) 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

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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.
    For further information on CPGs, contact Kristen Clarke, Office of 
Budget and Policy, FTA, at (202) 366-1686, or Kenneth Petty, Office of 
Planning and Environment, FHWA, at (202) 366-6654. For information 
regarding CPGs, Metropolitan planning, or Statewide planning, contact 
Candace Noonan, Office of Planning and Environment, FTA, at (202) 366-
1646.

B. Statewide Planning Program (49 U.S.C. 5304)

    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), planning support for 
nonurbanized areas, research, development and demonstration projects, 
fellowships for training in the public transportation field, university 
research, and human resource development. 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 reference in 49 CFR part 613. 
For more about the Statewide Planning and Research Program contact 
Candace Noonan, Office of Planning and Environment, at (202) 366-1648.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $18,489,600 to 
the Statewide Planning and Research Program (49 U.S.C. 5304). The total 
amount apportioned for the Statewide Planning and Research Program 
(SPRP) is $18,399,717, as shown in the table below, after the deduction 
for oversight (authorized by 49 U.S.C. 5327) and addition of prior year 
reapportioned funds.

                Statewide Transportation Planning Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................     $18,489,600
Oversight Deduction.....................................         -92,448
Prior Year Funds Added..................................           2,565
                                                         ---------------
  Total Apportioned.....................................      18,399,717
------------------------------------------------------------------------

    State apportionments for this program are displayed in Table 2.
2. Basis for Apportionment Formula
    As specified in law, 17.28 percent of the amounts authorized for 
Section 5305 are allocated to the Statewide Planning and Research 
program. FTA apportions funds to States by a statutory formula that is 
based on the most recent decennial Census, and the State's UZA 
population as compared to the UZA population of all States.
3. Requirements
    Funds are provided to States for Statewide planning and research 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, management 
training, and cooperative research. In addition, a State may authorize 
a portion of these funds to be used to supplement Metropolitan Planning 
funds allocated by the State to its UZAs, as the State deems 
appropriate. Program guidance for the Statewide Planning and Research 
program is found in FTA Circular C8200.1, Program Guidance and 
Application Instructions for State Planning and Research Program 
Grants, dated December 27, 2001. FTA is in the process of updating this 
circular to incorporate the new and changed planning requirements in 
sections 5304 and 5305, as set forth in SAFETEA-LU and implementing 
regulations.
4. Period of Availability
    The funds apportioned under the Statewide Planning and Research 
program remain available to be obligated by FTA to recipients for four 
fiscal years--which include the year of apportionment plus three 
additional fiscal years. Any apportioned funds that remain unobligated 
at the close of business on September 30, 2011, will revert to FTA for 
reapportionment under the Statewide Planning and Research Program.
5. Other Program or Apportionment Related Information and Highlights
    The information about Planning Emphasis Areas and CPGs described in 
section A.5, above for the Metropolitan Planning Program (49 U.S.C. 
5303), also applies to the Statewide Planning Program.

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

    Section 5307 authorizes Federal capital and operating assistance, 
in some cases, for transit in Urbanized Areas (UZAs). A UZA is an area 
with a population of 50,000 or more that has been defined and 
designated as such in the most recent decennial Census by the U.S. 
Census Bureau. The Urbanized Area Formula Program funds may also be 
used to support planning activities, and may supplement to planning 
projects funded under the Metropolitan Planning program described 
above. Urbanized Areas Formula Program funds used for planning must be 
shown in the UPWP for MPO(s) with responsibility for that area. Funding 
is apportioned directly to each UZA with a population of 200,000 or 
more, and to the State Governors for UZAs with populations between 
50,000 and 200,000. Eligible applicants are limited to entities 
designated as recipients in accordance with 49 U.S.C. 5307(a)(2) and 
other public entities with the consent of the Designated Recipient. 
Generally, operating assistance is not an eligible expense for UZAs 
with populations of 200,000 or more. However, there are several 
exceptions to this restriction. The exceptions are described in section 
2 (e) below.
    For more information about the Urbanized Area Formula Program 
contact Scott Faulk, Office of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $3,910,843,000 
to the Urbanized Area Formula Program (49 U.S.C. 5307). The total 
amount apportioned for the Urbanized Area Formula Program is 
$4,259,697,438 as shown in the table below, after the 0.75 percent 
deduction for oversight (authorized by 49 U.S.C. 5327) and including 
prior year reapportioned funds and funds apportioned to UZAs from the 
appropriation for section 5340 for Growing States and High Density 
States.

                     Urbanized Area Formula Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation..................................                \a\
                                                          $3,910,843,000
Oversight Deduction..................................        -29,331,323
Prior Year Funds Added...............................          9,026,596
Section 5340 Funds Added.............................        369,159,165
                                                      ------------------
  Total Apportioned..................................     4,259,697,438
------------------------------------------------------------------------
\a\ One percent set-aside for Small Transit Intensive Cities Formula.

    Table 3 displays the amounts apportioned under the Urbanized Area 
Formula Program.
2. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
legislative formulas. Different formulas apply to UZAs with populations 
of 200,000 or more and to UZAs with populations less than 200,000. For 
UZAs with 50,000 to 199,999 in population, the formula is based solely

[[Page 4960]]

on population and population density. For UZAs with populations of 
200,000 and more, the formula is based on a combination of bus revenue 
vehicle miles, bus passenger miles, fixed guideway revenue vehicle 
miles, and fixed guideway route miles, as well as population and 
population density. Table 4 includes detailed information about the 
formulas.
    To calculate a UZA's FY 2008 apportionment, FTA used population and 
population density statistics from the 2000 Census and (when 
applicable) validated mileage and transit service data from transit 
providers' 2006 National Transit Database (NTD) Report Year. Pursuant 
to 49 U.S.C. 5336(b), FTA used 60 percent of the directional route 
miles attributable to the Alaska Railroad passenger operations system 
to calculate the apportionment for the Anchorage, Alaska UZA.
    We have calculated dollar unit values for the formula factors used 
in the Urbanized Area Formula Program apportionment calculations. These 
values represent the amount of money each unit of a factor is worth in 
this year's apportionment. The unit values change each year, based on 
all of the data used to calculate the apportionments. The dollar unit 
values for FY 2008 are displayed in Table 5. To replicate the basic 
formula component of a UZA's apportionment, multiply the dollar unit 
value by the appropriate formula factor (i.e., the population, 
population x population density), and when applicable, data from the 
NTD (i.e., route miles, vehicle revenue miles, passenger miles, and 
operating cost).
    In FY 2008, one percent of funds appropriated for section 5307, 
$39,108,430, is set aside for Small Transit Intensive Cities (STIC). 
FTA apportions these funds to UZAs under 200,000 in population that 
operate at a level of service equal to or above the industry average 
level of service for all UZAs with a population of at least 200,000, 
but not more than 999,999, in one or more of six performance 
categories: passenger miles traveled per vehicle revenue mile, 
passenger miles traveled per vehicle revenue hour, vehicle revenue 
miles per capita, vehicle revenue hours per capita, passenger miles 
traveled per capita, and passengers per capita.
    The data for these categories for the purpose of FY 2008 
apportionments comes from the NTD reports for the 2006 reporting year. 
This data is used to determine a UZA's eligibility under the STIC 
formula, and is also used in the STIC apportionment calculations. 
Because these performance data change with each year's NTD reports, the 
UZAs eligible for STIC funds and the amount each receives may vary each 
year. In FY 2008, FTA apportioned $125,348 for each performance factor/
category for which the urbanized area exceeded the national average for 
UZAs with a population of at least 200,000 but not more than 999,999.
    In addition to the funds apportioned to UZAs, according to the 
section 5307 formula factors contained in 49 U.S.C. 5336, FTA also 
apportions funds to urbanized areas under section 5340 Growing States 
and High Density States formula factors. In FY 2008, FTA apportioned 
$150,159,165 to 453 UZA's in all 50 States and $219,000,000 to 46 UZAs 
in seven High Density States. Half of the funds appropriated for 
section 5340 are available to Growing States and half to High Density 
States. FTA apportions Growing States funds by a formula based on State 
population forecasts for 15 years beyond the most recent Census. FTA 
distributes the amounts apportioned for each State between UZAs and 
nonurbanized areas based on the ratio of urbanized/nonurbanized 
population within each State in the 2000 census, and to UZAs 
proportionately based on UZA population in the 2000 census because 
population estimates are not available at the UZA level. FTA apportions 
the High Density States funds to States with population densities in 
excess of 370 persons per square mile. These funds are apportioned only 
to UZAs within those States. FTA pro-rates each UZA's share of the High 
Density funds based on the population of the UZAs in the State in the 
2000 census.
    FTA cannot provide unit values for the Growing States or High 
Density formulas because the allocations to individual States and 
urbanized areas are based on their relative population data, rather 
than on a national per capita basis.
    Based on language in the conference report accompanying SAFETEA-LU, 
FTA is to show a single apportionment amount for section 5307, STIC and 
section 5340. FTA shows a single section 5307 apportionment amount for 
each UZA in Table 3, the Urbanized Area Formula apportionments. The 
amount includes funds apportioned based on the section 5307 formula 
factors, any STIC funds, and any Growing States and High Density States 
funding allocated to the area. FTA uses separate formulas to calculate 
and generate the respective apportionment amounts for the section 5307, 
STIC and section 5340. For technical assistance purposes, the UZAs that 
received STIC funds are listed in Table 6. FTA will make available 
breakouts of the funding allocated to each UZA under these formulas, 
upon request to the regional office.
3. Program Requirements
    Program guidance for the Urbanized Area Formula Program is 
presently found in FTA Circular C9030.1C, Urbanized Area Formula 
Program: Grant Application Instructions, dated October 1, 1998, and 
supplemented by additional information or changes provided in this 
document. FTA is in the process of updating the circular to incorporate 
changes resulting from language in SAFETEA-LU. Several important 
program requirements are highlighted below.
a. Urbanized Area Formula Apportionments to Governors
    For small UZAs, those with a population of less than 200,000, FTA 
apportions funds to the Governor of each State for distribution. A 
single total Governor apportionment amount for the Urbanized Area 
Formula, STIC, and Growing States and High Density States is shown in 
the Urbanized Area Formula Apportionment table 3. The table also shows 
the apportionment amount attributable to each small UZA within the 
State. The Governor may determine the sub-allocation of funds among the 
small UZAs except that funds attributed to a small UZA that is located 
within the planning boundaries of a Transportation Management Area 
(TMA) must be obligated to that small UZA, as discussed in subsection f 
below.
b. Transit Enhancements
    Section 5307(d)(1)(K) requires that one percent of section 5307 
funds apportioned to UZAs with populations of 200,000 or more be spent 
on eligible transit enhancement activities or projects. This 
requirement is now treated as a certification, rather than as a set-
aside as was the case under the Transportation Equity Act for the 21st 
Century (TEA-21). Designated recipients in UZAs with populations of 
200,000 or more certify they are spending not less than one percent of 
section 5307 funds for transit enhancements. In addition, Designated 
Recipients must submit an annual report on how they spent the money 
with the Federal fiscal year's final quarterly progress report in TEAM-
Web. The report should include the following elements: (a) Grantee 
name; (b) UZA name and number; (c) FTA project number; (d) transit 
enhancement category; (e) brief description of enhancement and progress 
towards project implementation; (f) activity line

[[Page 4961]]

item code from the approved budget; and (g) amount awarded by FTA for 
the enhancement. The list of transit enhancement categories and 
activity line item (ALI) codes may be found in the table of Scope and 
ALI codes on TEAM-Web, which can be accessed at http://
FTATEAMWeb.fta.dot.gov.
    The term ``transit enhancement'' includes projects or project 
elements that are designed to enhance public transportation service or 
use and are physically or functionally related to transit facilities. 
Eligible enhancements include the following: (1) Historic preservation, 
rehabilitation, and operation of historic mass transportation 
buildings, structures, and facilities (including historic bus and 
railroad facilities); (2) bus shelters; (3) landscaping and other 
scenic beautification, including tables, benches, trash receptacles, 
and street lights; (4) public art; (5) pedestrian access and walkways; 
(6) bicycle access, including bicycle storage facilities and installing 
equipment for transporting bicycles on mass transportation vehicles; 
(7) transit connections to parks within the recipient's transit service 
area; (8) signage; and (9) enhanced access for persons with 
disabilities to mass transportation.
    It is the responsibility of the MPO to determine how the one-
percent for transit enhancements will be allotted to transit projects. 
The one percent minimum requirement does not preclude more than one 
percent from being expended in a UZA for transit enhancements. However, 
activities that are only eligible as enhancements--in particular, 
operating costs for historic facilities--may be assisted only within 
the one-percent funding level.
c. Transit Security Projects
    Pursuant to section 5307(d)(1)(J), each recipient of Urbanized Area 
Formula funds must certify that of the amount received each fiscal 
year, it will expend at least one percent on ``public transportation 
security projects'' or must certify that it has decided the expenditure 
is not necessary. For applicants not eligible to receive section 5307 
funds for operating assistance, only capital security projects may be 
funded with the one percent. SAFETEA-LU, however, expanded the 
definition of eligible ``capital'' projects to include specific crime 
prevention and security activities, including: (1) Projects to refine 
and develop security and emergency response plans; (2) projects aimed 
at detecting chemical and biological agents in public transportation; 
(3) the conduct of emergency response drills with public transportation 
agencies and local first response agencies; and (4) security training 
for public transportation employees, but excluding all expenses related 
to operations, other than such expenses incurred in conducting 
emergency drills and training. ALI codes have been established for 
these four new capital activities. The one percent may also include 
security expenditures included within other capital activities, and, 
where the recipient is eligible, operating assistance. The relevant ALI 
codes would be used for those activities.
    FTA is often called upon to report to Congress and others on how 
grantees are expending Federal funds for security enhancements. To 
facilitate tracking of grantees' security expenditures, which are not 
always evident when included within larger capital or operating 
activity line items in the grant budget, we have established a non-
additive (``non-add'') scope code for security expenditures-- Scope 
991. The non-add scope is to be used to aggregate activities included 
in other scopes, and it does not increase the budget total. Section 
5307 grantees should include this non-add scope in the project budget 
for each new section 5307 grant application or amendment. Under this 
non-add scope, the applicant should repeat the full amount of any of 
the line items in the budget that are exclusively for security and 
include the portion of any other line item in the project budget that 
is attributable to security, using under the non-add scope the same 
line item used in the project budget. The grantee can modify the ALI 
description or use the extended text feature, if necessary, to describe 
the security expenditures.
    The grantee must provide information regarding its use of the one 
percent for security as part of each section 5307 grant application, 
using a special screen in TEAM-Web. If the grantee has certified that 
it is not necessary to expend one percent for security, the section 
5307 grant application must include information to support that 
certification. FTA will not process an application for a section 5307 
grant until the security information is complete.
d. FY 2008 Operating Assistance
    UZAs under 200,000 in population may use section 5307 funds for 
operating assistance. In addition, section 5307, as amended by, 
SAFETEA-LU and TEA-21, allows some UZAs with a population of 200,000 or 
more to use FY 2008 Urbanized Area Formula funds for operating 
assistance under certain conditions. The specific provisions allowing 
the limited use of operating assistance in large UZAs are as follows:
    (1) Section 5307(b)(1)(E) provides for grants for the operating 
costs of equipment and facilities for use in public transportation in 
the Evansville, IN-KY urbanized area, for a portion or portions of the 
UZA if the portion of the UZA includes only one State, the population 
of the portion is less than 30,000, and the grants will not be used to 
provide public transportation outside of the portion of the UZA.
    (2) Section 5307(b)(1)(F) provides operating costs of equipment and 
facilities for use in public transportation for local governmental 
authorities in areas which adopted transit operating and financing 
plans that became a part of the Houston, Texas UZA as a result of the 
2000 decennial census of population, but lie outside the service area 
of the principal public transportation agency that serves the Houston 
UZA.
    (3) Section 5336(a)(2) prescribes the formula to be used to 
apportion section 5307 funds to UZAs with population of 200,000 or 
more. SAFETEA-LU amended 5336(a)(2) to add language that stated, ``* * 
* except that the amount apportioned to the Anchorage urbanized area 
under subsection (b) shall be available to the Alaska Railroad for any 
costs related to its passenger operations.'' This language has the 
effect of directing that funds apportioned to the Anchorage urbanized 
area, under the fixed guideway tiers of the section 5307 apportionment 
formula, be made available to the Alaska Railroad, and that these funds 
may be used for any capital or operating costs related to its passenger 
operations.
    (4) Section 3027(c)(3) of TEA-21, as amended (49 U.S.C. 5307 note), 
provides an exception to the restriction on the use of operating 
assistance in a UZA with a population of 200,000 or more, by allowing 
transit providers/grantees that provide service exclusively to elderly 
persons and persons with disabilities and that operate 20 or fewer 
vehicles to use section 5307 funds apportioned to the UZA for operating 
assistance. The total amount of funding made available for this purpose 
under section 3027(c)(3) is $1.4 million. Transit providers/grantees 
eligible under this provision have already been identified and 
notified.
    In previous years, section 5307(b)(2) allowed UZAs that grew in 
population from under 200,000 to over 200,000, as a result of the 2000 
Census to use section 5307 funds for operating assistance in an amount 
up to 25 percent of the grandfathered amount for

[[Page 4962]]

FY 2005 funds. This provision was effective during FY 2006 and FY 2007 
and completely phased out at the end of FY 2007.
e. Sources of Local Match
    Pursuant to section 5307(e), the Federal share of an urbanized area 
formula grant is 80 percent of net project cost for a capital project 
and 50 percent of net project cost for operating assistance unless the 
recipients project a greater local share. The remainder of the net 
project cost (i.e., 20 percent and 50 percent, respectively) shall be 
provided from the following sources:
    1. In cash from non-Government sources other than revenues from 
providing public transportation services;
    2. From revenues derived from the sale of advertising and 
concessions;
    3. From an undistributed cash surplus, a replacement or 
depreciation cash fund or reserve, or new capital;
    4. From amounts received under a service agreement with a State or 
local social service agency or private social service organization; and
    5. Proceeds from the issuance of revenue bonds.
    In addition, funds from section 403(a)(5)(C)(vii) of the Social 
Security Act (42 U.S.C. 603(a)(5)(C)(vii)) can be used to match 
Urbanized Area Formula funds.
f. Designated Transportation Management Areas (TMA)
    Guidance for setting the boundaries of TMAs is in the joint 
transportation planning regulations codified at 23 CFR part 450 as 
reference in 49 CFR Part 613. In some cases, the TMA planning 
boundaries established by the MPO for the designated TMA includes one 
or more small UZAs. In addition, one small UZA (Santa Barbara, CA) has 
been designated as a TMA. In either of these situations, the Governor 
cannot allocate ``Governor's Apportionment'' funds attributed to the 
small UZAs to other areas; that is, the Governor only has discretion to 
allocate Governor's Apportionment funds attributable to areas that are 
outside of designated TMA planning boundaries.
    The list of small UZAs included within the planning boundaries of 
designated TMAs is provided in the table below.
[GRAPHIC] [TIFF OMITTED] TN28JA08.000

    The MPO must notify the Associate Administrator for Program 
Management, Federal Transit Administration, 1200 New Jersey Avenue, 
SE., Washington, DC 20590, in writing, no later than July 1 of each 
year, to identify any small UZA within the planning boundaries of a 
TMA.
g. Urbanized Area Formula Funds Used for Highway Purposes
    Funds apportioned to a TMA are eligible for transfer to FHWA for 
highway projects, if the Designated Recipient has allocated a portion 
of the areas section 5307 funding for such use. However, before funds 
can be transferred, the following conditions must be met: (1) Such use 
must be approved by the MPO in writing, after appropriate notice and 
opportunity for comment and appeal are provided to affected transit 
providers; (2) in the determination of the Secretary, such funds are 
not needed for investments required by the Americans with Disabilities 
Act of 1990 (ADA); and (3) the MPO determines that local transit needs 
are being addressed.
    The MPO should notify the appropriate FTA Regional Administrator of 
its intent to use FTA funds for highway purposes, as prescribed in 
section V.D below. Urbanized Area Formula funds that are designated by 
the MPO for highway projects will be transferred to and administered by 
FHWA.
4. Period of Availability
    The Urbanized Area Formula Program funds apportioned in this notice 
remain available to be obligated by FTA to recipients until September 
30, 2011. Any of these apportioned funds that remain unobligated at the 
close of business on September 30, 2011, will revert to FTA for 
reapportionment under the Urbanized Area Formula Program.
5. Other Program or Apportionment Related Information and Highlights
    In each UZA with a population of 200,000 or more, the Governor in 
consultation with responsible local officials, and publicly owned 
operators of public transportation has designated one or more entities 
to be the Designated Recipient for section 5307 funds apportioned to 
the UZA. The same entity(s) may or may not be the Designated Recipient 
for the Job Access and Reverse Commute (JARC) and New Freedom program 
funds apportioned to the UZA. In UZAs under 200,000 in population, the 
State is the Designated Recipient for section 5307 as well as JARC and 
New Freedom programs. The Designated Recipient for section 5307 may 
authorize other entities to apply directly to FTA for section 5307 
grants pursuant to a supplemental agreement. While the requirement that 
projects selected for funding be included in a locally developed 
coordinated public transit/human service transportation

[[Page 4963]]

plan is not included in section 5307 as it is in sections 5310, 5316 
(JARC) and 5317 (New Freedom), FTA expects that in their role as public 
transit providers, recipients of section 5307 funds will be 
participants in the local planning process for these programs.

D. Clean Fuels Grant Program (49 U.S.C. 5308)

    The Clean Fuels Grant Program supports the use of alternative fuels 
in air quality maintenance or nonattainment areas for ozone or carbon 
monoxide through capital grants to urbanized areas for clean fuel 
vehicles and facilities. Previously an unfunded Formula Program under 
TEA-21, the program is now a discretionary program. For more 
information about this program contact Kimberly Sledge, Office of 
Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $49,000,000 to 
the Clean Fuels Grant Program (49 U.S.C. 5308). SAFETEA-LU earmarked 
$20,247,000 for specific Clean Fuel projects. The balance of 
$28,753,000 will be awarded competitively. FTA will determine projects 
to be funded under the program at a later date.

                        Clean Fuels Grant Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................     $49,000,000
Funds Allocated to SAFETEA-LU Earmarks..................      20,247,000
Unallocated Funds Available for Discretionary/                28,753,000
 Competitive Allocation.................................
------------------------------------------------------------------------

    Allocations to projects earmarked under the Clean Fuels program in 
SAFETEA-LU are displayed in Table 7.
2. Basis for Allocation of Funds
    Section 3044(b) of SAFETEA-LU included 16 projects to be funded 
through the Clean Fuels program. Table 7 displays the amounts available 
in FY 2008 to the Clean Fuels projects designated in SAFETEA-LU. FY 
2006 and FY 2007 carryover funds are shown in Table 8.
3. Requirements
    FTA published a final rule on March 30, 2007, which revised 
regulations found at 49 CFR part 624. Clean Fuels program funds may be 
made available to any grantee in a UZA that is designated as 
maintenance or nonattainment area for ozone or carbon monoxide as 
defined in the Clean Air Act. Eligible recipients include section 5307 
Designated Recipients as well as recipients in small UZAs. In the case 
of a small UZA, the State in which the area is located will act as the 
recipient.
    Eligible projects include the purchase or lease of clean fuel buses 
(including buses that employ a lightweight composite primary 
structure), the construction or lease of clean fuel buses or electrical 
recharging facilities and related equipment for such buses, and 
construction or improvement of public transportation facilities to 
accommodate clean fuel buses.
    Legislation will be necessary if a recipient wishes to use Clean 
Fuels funds earmarked in SAFETEA-LU for eligible program activities 
outside the scope of a project description.
    Unless otherwise specified in law, grants made under the Clean 
Fuels program must meet all other eligibility requirements as outlined 
in section 5308.
4. Period of Availability
    Funds designated for specific Clean Fuels Program projects remain 
available for obligation for three fiscal years, which includes the 
year of appropriation plus two additional fiscal years. The FY 2008 
funding for projects included in this notice remains available through 
September 30, 2010. Clean Fuels funds not obligated in an FTA grant for 
their original purpose at the end of the period of availability will 
generally be made available for other projects.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Clean Fuel allocations in the 
amount of $19,576,930 remain available for obligation in FY 2008. This 
includes $5,352,930 in FY 2006 and $14,224,000 in FY 2007 unobligated 
allocations. The unobligated amounts available as of September 30, 
2007, are displayed in Table 8.

E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization

    This program provides capital assistance for the modernization of 
existing fixed guideway systems. Funds are allocated by a statutory 
formula to UZAs with fixed guideway systems that have been in operation 
for at least seven years. A ``fixed guideway'' refers to any transit 
service that uses exclusive or controlled rights-of-way or rails, 
entirely or in part. The term includes heavy rail, commuter rail, light 
rail, monorail, trolleybus, aerial tramway, inclined plane, cable car, 
automated guideway transit, ferryboats, that portion of motor bus 
service operated on exclusive or controlled rights-of-way, and high-
occupancy-vehicle (HOV) lanes. Eligible applicants are the public 
transit authorities in those urbanized areas to which the funds are 
allocated. For more information about Fixed Guideway Modernization 
contact Scott Faulk, Office of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $1,570,000,000 
to the Fixed Guideway Modernization Program. The total amount 
apportioned for the Fixed Guideway Modernization Program is 
$1,554,627,028, after the deduction for oversight, and addition of 
prior year reapportioned funds, as shown in the table below.

                  Fixed Guideway Modernization Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation..................................     $1,570,000,000
Oversight Deduction..................................        -15,700,000
Prior Year Funds Added...............................            327,028
                                                      ------------------
  Total Apportioned..................................      1,554,627,028
------------------------------------------------------------------------

    The FY 2008 Fixed Guideway Modernization Program apportionments to 
eligible areas are displayed in Table 9.
2. Basis for Formula Apportionment
    The formula for allocating the Fixed Guideway Modernization funds 
contains seven tiers. The apportionment of funding under the first four 
tiers is based on amounts specified in law and NTD data used to 
apportion funds in FY 1997. Funding under the last three tiers is 
apportioned based on the latest available data on route miles and 
revenue vehicle miles on segments at least seven years old, as reported 
to the NTD. Section 5337(f) of title 49, U.S.C. provides for the 
inclusion of Morgantown, West Virginia (population 55,997) as an 
eligible UZA for purposes of apportioning fixed guideway modernization 
funds. Also, pursuant to 49 U.S.C. 5336(b) FTA used 60 percent of the 
directional route miles attributable to the Alaska Railroad passenger 
operations system to calculate the apportionment for the Anchorage, 
Alaska UZA under the section 5309 Fixed Guideway Modernization formula.
    FY 2008 Formula apportionments are based on data grantees provided 
to the NTD for the 2006 reporting year. Table 10 provides additional 
information and details on the formula. Dollar unit values for the 
formula factors used in the Fixed Guideway Modernization Program are 
displayed in Table 5. To replicate an area's apportionment,

[[Page 4964]]

multiply the dollar unit value by the appropriate formula factor, i.e., 
route miles and revenue vehicle miles.
3. Program Requirements
    Fixed Guideway Modernization funds must be used for capital 
projects to maintain, modernize, or improve fixed guideway systems. 
Eligible UZAs (those with a population of 200,000 or more) with fixed 
guideway systems that are at least seven years old are entitled to 
receive Fixed Guideway Modernization funds. A threshold level of more 
than one mile of fixed guideway is required in order to receive Fixed 
Guideway Modernization funds. Therefore, UZAs reporting one mile or 
less of fixed guideway mileage under the NTD are not included. However, 
funds apportioned to an urbanized area may be used on any fixed 
guideway segment in the UZA. Program guidance for Fixed Guideway 
Modernization is presently found in FTA Circular C9300.1A, Capital 
Program: Grant Application Instructions, dated October 1, 1998. FTA is 
in the process of updating this circular to incorporate changes 
resulting from language in SAFETEA-LU. A proposed revised circular was 
published for public comments, which are due by January 25, 2008.
4. Period of Availability
    The funds apportioned in this notice under the Fixed Guideway 
Modernization Program remain available to be obligated by FTA to 
recipients for three fiscal years following FY 2008. Any of these 
apportioned funds that remain unobligated at the close of business on 
September 30, 2011, will revert to FTA for reapportionment under the 
Fixed Guideway Modernization Program.

F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-Related 
Facilities

    This program provides capital assistance for new and replacement 
buses and related facilities. Funds are allocated on a discretionary 
basis. Eligible purposes are acquisition of buses for fleet and service 
expansion, bus maintenance and administrative facilities, transfer 
facilities, bus malls, transportation centers, intermodal terminals, 
park-and-ride stations, acquisition of replacement vehicles, bus 
rebuilds, bus preventive maintenance, passenger amenities such as 
passenger shelters and bus stop signs, accessory and miscellaneous 
equipment such as mobile radio units, supervisory vehicles, fare boxes, 
computers, and shop and garage equipment. Eligible applicants are State 
and local governmental authorities. Eligible subrecipients include 
other public agencies, private companies engaged in public 
transportation and private non-profit organizations. For more 
information about Bus and Bus-Related Facilities contact Maria Wright, 
Office of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $823,052,962 
for the bus and bus facilities program. The amount of funding for 
projects designated in section 3044 of SAFETEA-LU for Bus and Bus-
Related Facilities in FY 2008 is $497,670,593. The amount of funding 
for projects designated in the Consolidated Appropriations Act, 2008 is 
$220,599,862. The balance remains unallocated, as shown in the 
following table.

                      Bus and Bus Facility Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation..................................       $927,750,000
Ob lim. Reduction/Rescission.........................       -104,697,038
Oversight Deduction..................................         -8,230,530
Total Available for Allocation.......................        814,822,432
SAFETEA-LU Statutory Provisions Projects.............        497,670,593
Consolidated Appropriations Act Designations.........        220,599,862
Unallocated..........................................         96,551,977
------------------------------------------------------------------------

    The FY 2008 SAFETEA-LU Allocations for the Bus and Bus Facilities 
are displayed in Table 11.
2. Basis for Allocations
    Funds are provided annually under section 5309 for discretionary 
allocation for bus and bus facilities projects. SAFETEA-LU listed 646 
earmarked projects to be funded each year through the Bus Program 
(Section 3044) and specified additional projects in Section 5309(m)(7). 
Table 11 displays only the allocation of the FY 2008 Bus and Bus-
Related Facilities funds by State and project for projects earmarked in 
SAFETEA-LU. The table includes a SAFETEA-LU project number for each 
project listed in Section 3044. FTA will issue a supplemental notice, 
at a later date, regarding the projects designated in the committee 
reports that accompanied the Consolidated Appropriations Act.
3. Requirements
    Section 125 and section 113 of the FY 2005 and FY 2006 Department 
of Transportation Appropriations Acts, respectively, make projects 
identified in the statement of managers automatically eligible to 
receive the funds designated to the project ``notwithstanding any other 
provision of law.'' Similar language was first included as a general 
provision in section 547 of the FY 2004 Department of Transportation 
Appropriations Act. In addition, section 3044 of SAFETEA-LU earmarked 
646 Bus and Bus Facilities projects in FY 2008. FTA will review 
Congressional intent on a case by case basis.
    FTA honors Congressional earmarks for the purpose designated, for 
purposes eligible under the program or under the expanded eligibility 
of a ``notwithstanding'' provision. If you want to apply to use funds 
designated under the Bus Program in any year for project activities 
outside the scope of the project designation included in report 
language, you must submit your request for reprogramming to the House 
and Senate Committees on Appropriations for resolution.
    FTA will honor projects earmarked to receive section 5309 bus funds 
in SAFETEA-LU. Legislation will be necessary to amend the earmark if 
you wish to use funds for project activities outside the scope of the 
project description.
    Grants made under the Bus and Bus-Related Facilities program must 
meet all other eligibility requirements as outlined in section 5309 
unless otherwise specified in law.
    Program guidance for Bus and Bus-Related Facilities is found in FTA 
Circular C9300.1A, Capital Program: Grant Application Instructions. FTA 
is in the process of updating this circular to incorporate changes 
resulting from language in SAFETEA-LU. FTA issued a proposed revision 
of the circular and the public comment period on the document ends on 
January 25, 2008.
4. Period of Availability
    The FY 2008 Bus and Bus-Related Facilities funds not obligated for 
their original purpose as of September 30, 2010, may be made available 
for other projects under 49 U.S.C. 5309.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Bus and Bus-Related allocations 
in the amount of $1,127,186,665 remain available for obligation in FY 
2008. This includes $1,091,033,715 in fiscal years 2006 and 2007 
unobligated allocations (earmarked and discretionary projects); 
$35,090,169 for FY 2000-FY 2004 unobligated allocations that were 
extended by previous direction by the House and Senate appropriation 
committees; $1,062,841 for earmarks reallocated in FY 2007. The 
unobligated amounts available as of September 30, 2007, are displayed 
in Table 12. Table

[[Page 4965]]

12 does not include extended or redirected project funds identified in 
the reports accompanying the Consolidated Appropriations Act, 2008, or 
in the most recent congressional clarification letter dated December 
19, 2007. FTA will issue a supplemental notice at a later date.

G. Capital Investment Program (49 U.S.C. 5309)--New Starts

    The New Starts program provides funds for construction of new fixed 
guideway systems or extensions to existing fixed guideway systems. 
Eligible purposes are light rail, rapid rail (heavy rail), commuter 
rail, monorail, automated fixed guideway system (such as a ``people 
mover''), or a busway/high occupancy vehicle (HOV) facility, Bus Rapid 
Transit that is a fixed guideway, or an extension of any of these. 
Projects become candidates for funding under this program by 
successfully completing the appropriate steps in the major capital 
investment planning and project development process. Major new fixed 
guideway projects, or extensions to existing systems, financed with New 
Starts funds typically receive these funds through a full funding grant 
agreement (FFGA) that defines the scope of the project and specifies 
the total multi-year Federal commitment to the project. Beginning in FY 
2007, up to $200,000,000 each year is designated for ``Small Starts'' 
(section 5309(e)) projects with a New Starts share of less than 
$75,000,000 and a net project cost of less than $250,000,000. The 
Consolidated Appropriations Act, 2008, set aside $100,564,600 for Small 
Starts from the amounts appropriated for Capital Investment Grants.
    Section 5309(m)(6) also made annual allocations of New Start 
funding available to Alaska and Hawaii for ferryboats and to the Denali 
Commission in Anchorage, Alaska, under the terms of section 307(e) of 
the Denali Commission Act of 1998 (42 U.S.C. 3121) for docks, 
waterfront development projects and related transportation 
infrastructure in rural Alaska communities.
    For more information about New Starts project development contact 
Elizabeth Day, Office of Planning and Environment, at (202) 366-4033, 
or for information about published allocations contact Cheryl Oliver, 
Office of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $1,569,091,997 
to New Starts. The total amount allocated for New Starts is, as shown 
in the table below.

                               New Starts
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation..................................     $1,569,091,997
Oversight Deduction..................................         15,690,920
Total Funds to be Allocated..........................      1,553,401,077
Funds Allocated to Specific Projects in Table 13.....  \a\ 1,534,492,165
Unallocated Funds....................................        18,908,912
------------------------------------------------------------------------
\a\ Includes $20 million for the Denali Commission and Alaska and Hawaii
  Ferry projects.

2. Basis for Allocation
    Congress included authorizations for specific New Starts projects 
in SAFETEA-LU, the Consolidated Appropriations Act, 2008 and in 
statutory takedowns from the program for Alaska and Hawaii Ferryboats 
and the Denali Commission. FY 2008 New Starts funding is shown in Table 
13.
3. Requirements
    Because New Starts projects are earmarked in law rather than report 
language, reprogramming for a purpose other than that specified must 
also occur in law. New Starts projects are subject to a complex set of 
approvals related to planning and project development set forth in 49 
CFR Part 611. FTA has published a number of rulemakings and interim 
guidance documents related to the New Starts program since the passage 
of SAFETEA-LU. Grantees should reference the FTA Web site at http://
www.fta.dot.gov for the most current program guidance about project 
developments and management. Grant related guidance for New Starts is 
found in FTA Circular C9300.1A, Capital Program: Grant Application 
Instructions, dated October 1, 1998; and C5200.1A, Full Funding Grant 
Agreement Guidance, dated December 5, 2002. FTA is in the process of 
updating these circulars to incorporate changes resulting from language 
in SAFETEA-LU and recent rulemakings. Proposed revised circular 9300.1A 
is currently out for public comment. Comments are due by January 25, 
2008.
4. Period of Availability
    New Starts funds remain available for three fiscal years (including 
the fiscal year the funds are made available or appropriated plus two 
additional years.) FY 2008 funds remain available through September 30, 
2010. Funds may be extended by Congress or made available for other 
projects after the period of availability has expired.
5. Other Program or Apportionment Related Information and Highlights
    Prior year unobligated allocations for New Starts in the amount of 
$336,152,170 remain available for obligation in FY 2008. This amount 
includes $138,931,910 in FY 2005 and prior years, $126,973,589 in FY 
2006 and $70,246,671 in FY 2007 unobligated allocations. These 
unobligated amounts are displayed in Table 14. Information on pre-award 
authority for New Starts projects is detailed in section V below.

H. Special Needs of Elderly Individuals and Individuals With 
Disabilities Program (49 U.S.C. 5310)

    This program provides formula funding to States for capital 
projects to assist private nonprofit groups in meeting the 
transportation needs of the elderly and individuals with disabilities 
when the public transportation service provided in the area is 
unavailable, insufficient, or inappropriate to meet these needs. A 
State agency designated by the Governor administers the section 5310 
program. The State's responsibilities include: notifying eligible local 
entities of funding availability; developing project selection 
criteria; determining applicant eligibility; selecting projects for 
funding; and ensuring that all subrecipients comply with Federal 
requirements. Eligible nonprofit organizations or public bodies must 
apply directly to the designated State agency for assistance under this 
program. For more information about the Elderly and Individuals with 
Disabilities Program contact Cheryl Oliver, Office of Transit Programs, 
at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $127,000,000 to 
the Elderly and Individuals with Disabilities Program (49 U.S.C. 5310). 
After deduction of 0.5 percent for oversight, and the addition of 
reapportioned prior year funds, $126,723,652 remains available for 
allocation to the States.

            Elderly and Individuals With Disabilities Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................    $127,000,000
Oversight Deduction.....................................        -635,000
Prior Year Funds Added..................................         358,652
                                                         ---------------
  Total Apportioned.....................................     126,723,652
------------------------------------------------------------------------

    The FY 2008 Elderly and Individuals with Disabilities Program 
apportionments to the States are displayed in Table 15.

[[Page 4966]]

2. Basis for Apportionment
    FTA allocates funds to the States by an administrative formula 
consisting of a $125,000 floor for each State ($50,000 for smaller 
territories) with the balance allocated based on 2000 Census population 
data for persons aged 65 and over and for persons with disabilities.
3. Requirements
    Funds are available to support the capital costs of transportation 
services for older adults and people with disabilities. Uniquely under 
this program, eligible capital costs include the acquisition of 
service. Seven specified States (Alaska, Louisiana, Minnesota, North 
Carolina, Oregon, South Carolina, and Wisconsin) may use up to 33 
percent of their apportionment for operating assistance under the terms 
of the SAFETEA-LU section 3012(b) pilot program.
    Capital assistance is provided on an 80 percent Federal, 20 percent 
local matching basis except that section 5310(c) allows States eligible 
for a higher match under the sliding scale for FHWA programs to use 
that match ratio for section 5310 capital projects. Operating 
assistance is 50 percent Federal, 50 percent local. Funds provided 
under other Federal programs (other than those of the DOT, with the 
exception of the Federal Lands Highway Program established by 23 U.S.C. 
204) may be used as match. Revenue from service contracts may also be 
used as local match.
    While the assistance is intended primarily for private non-profit 
organizations, public bodies approved by the State to coordinate 
services for the elderly and individuals with disabilities, or any 
public body that certifies to the State that there are no non-profit 
organizations in the area that are readily available to carry out the 
service, may receive these funds.
    States may use up to ten percent of their annual apportionment to 
administer, plan, and provide technical assistance for a funded 
project. No local share is required for these program administrative 
funds. Funds used under this program for planning must be shown in the 
United Planning Work Program (UPWP) for MPO(s) with responsibility for 
that area.
    The State recipient must certify that: the projects selected were 
derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public. The locally developed, coordinated public transit-human 
services transportation planning process must be coordinated and 
consistent with the metropolitan and statewide planning processes and 
funding for the program must be included in the metropolitan and 
statewide Transportation Improvement Plan (TIP and STIP) at a level of 
specificity or aggregation consistent with State and local policies and 
procedures. Finally, the State must certify that allocations of the 
grant to subrecipients are made on a fair and equitable basis.
    The coordinated planning requirement is also a requirement in two 
additional programs. Projects selected for funding under the Job Access 
Reverse Commute program and the New Freedom program are also required 
to be derived from a locally developed coordinated public transit/human 
service transportation plan. FTA anticipates that most areas will 
develop one consolidated plan for all the programs, which may include 
separate elements and other human service transportation programs.
    The section 5310 program is subject to the requirements of section 
5307 to the extent the Secretary determines appropriate. Program 
guidance is found in FTA C 9070.1F, dated May 1, 2007. The circular is 
posted on the FTA Web site at http://www.fta.dot.gov.
4. Period of Availability
    FTA has administratively established a three year period of 
availability for section 5310 funds. Funds allocated to States under 
the Elderly and Individuals with Disabilities Program in this notice 
must be obligated by September 30, 2010. Any funding that remains 
unobligated as of that date will revert to FTA for reapportionment 
among the States under the Elderly and Individuals with Disabilities 
Program.
5. Other Program or Apportionment Related Information and Highlights
    States may transfer section 5310 funds to section 5307 or section 
5311, but only for projects selected under the section 5310 program, 
not as a general supplement for those programs. FTA anticipates that 
the States would use this flexibility primarily for projects to be 
implemented by a section 5307 recipient in a small urbanized area, or 
for Federally recognized Indian Tribes that elect to receive funds as a 
direct recipient from FTA under section 5311. A State that transfers 
section 5310 funds to section 5307 must certify that each project for 
which the funds are transferred has been coordinated with private 
nonprofit providers of services. FTA has established a scope code (641) 
to track 5310 projects included within a section 5307 or 5311 grant. 
Transfer to section 5307 or 5311 is permitted but not required. FTA 
expects primarily to award stand-alone section 5310 grants to the State 
for any and all subrecipients.

I. Nonurbanized Area Formula Program (49 U.S.C. 5311)

    This program provides formula funding to States and Indian Tribes 
for the purpose of supporting public transportation in areas with a 
population of less than 50,000. Funding may be used for capital, 
operating, State administration, and project administration expenses. 
Eligible subrecipients include State and local public agencies, Indian 
Tribes, private non-profit organizations, and private operators of 
public transportation services, including intercity bus companies. 
Indian Tribes are also eligible direct recipients under section 5311, 
both for funds apportioned to the States and for projects selected to 
be funded with funds set aside for a separate Tribal Transit Program.
    For more information about the Nonurbanized Area Formula Program 
contact Lorna Wilson, Office of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $438,000,000 to 
the Nonurbanized Area Formula Program (49 U.S.C. 5311). The total 
amount apportioned for the Nonurbanized Area Formula Program is 
$415,050,000, after take-downs of two percent for the Rural 
Transportation Assistance Program (RTAP), 0.5 percent for oversight, 
and $12,000,000 for the Tribal Transit Program, and the addition of 
section 5340 funds and prior year funds reapportioned, as shown in the 
table below.

                    Nonurbanized Area Formula Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................    $438,000,000
Oversight Deduction.....................................      -2,190,000
RTAP Takedown...........................................      -8,760,000
Tribal Transit Takedown.................................     -12,000,000
Prior Year Funds Added..................................         943,489
Section 5340 Funds Added................................      68,840,835
                                                         ---------------
  Total Apportioned.....................................     484,834,324
------------------------------------------------------------------------

    The FY 2008 Nonurbanized Area Formula apportionments to the States 
are displayed in Table 16.
2. Basis for Apportionments
    FTA apportions the funds available for apportionment after take-
down for

[[Page 4967]]

oversight, the Tribal Transit Program, and RTAP according to a 
statutory formula. FTA apportions the first twenty percent to the 
States based on land area in nonurbanized areas with no state receiving 
more than 5 percent of the amount apportioned. FTA apportions the 
remaining eighty percent based on nonurbanized population of each State 
relative to the national nonurbanized population. FTA does not 
apportion section 5311 funds to the Virgin Islands, which by a 
statutory exception are treated as an urbanized area for purposes of 
the section 5307 formula program.
    FTA also allocated $68,840,835 to the 50 States for nonurbanized 
areas from the Growing States portion of section 5340. FTA apportions 
Growing States funds by a formula based on State population forecasts 
for 15 years beyond the most recent census. FTA distributes the amounts 
apportioned for each State between UZAs and nonurbanized areas based on 
the ratio of urbanized/nonurbanized population within each State in the 
2000 census.
3. Program Requirements
    The Nonurbanized Area Formula Program provides capital, operating 
and administrative assistance for public transit service in 
nonurbanized areas under 50,000 in population.
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
section 5311 capital projects and 62.5 percent of the sliding scale 
capital match ratio for operating projects.
    Each State must spend no less than 15 percent of its FY 2008 
Nonurbanized Area Formula apportionment for the development and support 
of intercity bus transportation, unless the State certifies, after 
consultation with affected intercity bus service providers, that the 
intercity bus service needs of the State are being adequately met. 
SAFETEA-LU added this requirement for consultation with the industry to 
strengthen the certification requirement. FTA also encourages 
consultation with other stakeholders, such as communities affected by 
loss of intercity service.
    Each State prepares an annual program of projects, which must 
provide for fair and equitable distribution of funds within the States, 
including Indian reservations, and must provide for maximum feasible 
coordination with transportation services assisted by other Federal 
sources.
    In order to retain eligibility for funding, recipients of section 
5311 funding must report data annually to the NTD, beginning with the 
2006 reporting year.
    Program guidance for the Nonurbanized Area Formula Program is found 
in FTA C 9040.1F, Nonurbanized Area Formula Program Guidance and Grant 
Application Instructions, dated April 1, 2007, which was revised and 
reissued after notice and comment. The circular is posted at 
www.fta.dot.gov.
4. Period of Availability
    Funds apportioned to nonurbanized areas under the Nonurbanized Area 
Formula Program during FY 2008 will remain available for two additional 
fiscal years after the year of apportionment. Any funds that remain 
unobligated at the close of business on September 30, 2010, will revert 
to FTA for allocation among the States under the Nonurbanized Area 
Formula Program.
5. Other Program or Apportionment Related Information and Highlights
    a. NTD Reporting. By law, FTA requires that each recipient under 
the section 5311 program submit an annual report to the NTD containing 
information on capital investments, operations, and service provided 
with funds received under the section 5311 program. Section 5311(b)(4), 
as amended by SAFETEA-LU, specifies that the report should include 
information on total annual revenue, sources of revenue, total annual 
operating costs, total annual capital costs, fleet size and type, and 
related facilities, revenue vehicle miles, and ridership. Reporting of 
2006 data was a voluntary state-based rural data module for the NTD 
that FTA previously developed on in consultation with State Departments 
of Transportation (DOT). On December 6, 2007, FTA published a final 
rule regarding the NTD requirements for section 5311 recipients. The 
proposed NTD Rural Data Reporting Module manual and reporting 
instructions for 2007 data was also published for public comment and 
revised in response to comments received. The final 2007 NTD Rural Data 
Reporting Module manual and reporting instructions are now posted on 
the NTD Web site, http://www.ntdprogram.com. For each 5311 
subrecipient, the State DOT must complete a one-page form of basic 
data. NTD reporting year 2007 reports are due on February 29, 2008, for 
reports whose 2007 Fiscal Year ended on or before September 30, 2007. 
The 2007 NTD Reporting deadline will continue to be April 30, 2008, for 
those reports whose 2007 Fiscal Year ended or will end between October 
1, 2007, and December 31, 2007. The NTD deadlines will revert to the 
standard for FY 2008. The anticipated report due dates are as follows: 
2008 Fiscal Year end date: January 1, 2008-June 30, 2008 report due: 
October 31, 2008, 2008 Fiscal Year end date: July 1, 2008--September 
30, 2008 report due: January 30, 2009, 2008 Fiscal Year end date: 
October 1, 2008--December 31, 2008 report due: May 1, 2009. For full 
details on NTD reporting and to enter data and receive additional 
instructions, State DOTs can go to the NTD Web site http://
www.ntdprogram.gov.
    b. Extension of Intercity Bus Pilot of In-Kind Match. Beginning in 
FY 2007, FTA implemented a two year pilot program of in-kind match for 
intercity bus service. The initial program was set to expire after FY 
2008; however, FTA has decided to extend the program through FY 2009. 
FTA published guidance on the in-kind match pilot in the Federal 
Register on February 28, 2007, as Appendix 1 of the Notice announcing 
the final revised circular 9040.1F.

J. 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 nonurbanized areas. For more information about Rural 
Transportation Assistance Program (RTAP) contact Lorna Wilson, Office 
of Transit Programs, at (202) 366-2053.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $8,760,000 to 
RTAP (49 U.S.C. 5311(b)(2)), as a two percent takedown from the funds 
appropriated for Section 5311. FTA has reserved 15 percent for the 
National RTAP program. After adding prior year funds eligible for 
reapportionment, $7,561,124 is available for allocations to the States, 
as shown in the table below.

                    Rural Transit Assistance Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation........................................   $8,760,000
National RTAP Takedown.....................................   -1,314,000
Prior Year Funds Added.....................................      115,124
                                                            ------------
  Total Apportioned........................................    7,561,124
------------------------------------------------------------------------

    Table 16 shows the FY 2008 RTAP allocations to the States.

[[Page 4968]]

2. Basis for Allocation
    FTA allocates funds to the States by an administrative formula. 
First FTA allocates $65,000 to each State ($10,000 to territories), and 
then allocates the balance based on nonurbanized population in the 2000 
census.
3. Program Requirements
    States may use the funds to undertake research, training, technical 
assistance, and other support services to meet the needs of transit 
operators in nonurbanized areas. These funds are to be used in 
conjunction with a State's administration of the Nonurbanized Area 
Formula Program, but may also support the rural components of the 
Section 5310, JARC, and New Freedom programs.
4. Period of Availability
    Funds apportioned to States under RTAP remain available for two 
fiscal years following FY 2008. Any funds that remain unobligated at 
the close of business on September 30, 2010, will revert to FTA for 
allocation among the States under the RTAP.
5. Other Program or Apportionment Related Information and Highlights
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. During FY 2008, FTA will be 
soliciting proposals for the National RTAP program services for the 
next five years. The projects are guided by a project review board of 
managers of rural transit systems and State DOT RTAP programs. National 
RTAP resources also support the biennial TRB National Conference on 
Rural Public and Intercity Bus Transportation and other research and 
technical assistance projects of a national nature.
    The percentage takedown for RTAP, combined with rising funding 
levels for section 5311, make additional resources available at the 
State RTAP program level as well as the national RTAP for projects such 
as providing technical assistance for the new tribal transit program 
and conducting intercity bus needs assessments.

K. Public Transportation on Indian Reservations Program (49 U.S.C. 
5311(c)(1))

    FTA refers to this program as the Tribal Transit Program. It is 
funded as a takedown from funds appropriated for the section 5311 
program. Federally recognized Indian Tribes are defined as eligible 
direct recipients. The funds are to be apportioned for grants to Indian 
Tribes for any purpose eligible under section 5311, which includes 
capital, operating, planning, and administrative assistance for rural 
public transit services and rural intercity bus service. For more 
information about the Tribal Transit Program contact Lorna Wilson, 
Office of Transit Programs, at (202) 366-2053.
1. Funding Availability in FY 2008
    Under the Consolidated Appropriations Act, 2008, the amount 
allocated to the program in FY 2008 is $12,000,000, as authorized in 
section 5311(c)(1)(B).
2. Basis for Allocation
    Based on procedures developed in consultation with the Tribes, FTA 
will issue a Notice of Funding Availability (NOFA) soliciting 
applications for FY 2008 funds.
3. Requirements
    FTA developed streamlined program requirements based on statutory 
authority allowing the Secretary to determine the terms and conditions 
appropriate to the program. These conditions are contained in the 
annual NOFA.
4. Period of Availability
    Funds remain available for three fiscal years, which includes the 
fiscal year the funds were apportioned or appropriated plus two 
additional years. Funds appropriated in FY 2008 will remain available 
for obligation to the tribes competitively selected to receive the 
funds through September 30, 2010. Any funds that remain unobligated 
after September 30, 2010, will revert to FTA for reallocation among the 
Tribes.
5. Other Program or Apportionment Related Information and Highlights
    The funds set aside for the Tribal Transit Program are not meant to 
replace or reduce funds that Indian Tribes receive from states through 
the section 5311 program but are to be used to enhance public 
transportation on Indian reservations and transit serving tribal 
communities. Funds allocated to Tribes by the States may be included in 
the State's section 5311 application or awarded by FTA in a grant 
directly to the tribe. We encourage Tribes intending to apply to FTA as 
direct recipients to contact the appropriate FTA regional office at the 
earliest opportunity.
    Technical assistance for Tribes may be available from the State DOT 
using the State's allocation of RTAP or funds available for State 
administration under section 5311, from the Tribal Transportation 
Assistance Program (TTAP) Centers supported by FHWA, and from the 
Community Transportation Association of America under a program funded 
by the United States Department of Agriculture (USDA). The National 
RTAP will also be developing new resources for Tribal Transit.

L. National Research Programs (49 U.S.C. 5314)

    FTA's National Research Programs (NRP) include the National 
Research and Technology Program (NRTP), the Transit Cooperative 
Research Program (TCRP), the National Transit Institute (NTI), and the 
University Transportation Centers Program (UTC).
    Through funding under these programs, FTA seeks to deliver 
solutions that improve public transportation. FTA's Strategic Research 
Goals are to provide transit research leadership, increase transit 
ridership, improve capital and operating efficiencies, improve safety 
and emergency preparedness, and to protect the environment and promote 
energy independence. For more information contact Bruce Robinson, 
Office of Research, Demonstration and Innovation, at (202) 366-4209.
1. Funding Availability in FY 2008
    The Consolidated Appropriations Act, 2008, provides $65,362,900 for 
the Research and University Research Centers Programs. Of this amount 
$9,300,000 is allocated for TCRP, $4,300,000 for NTI, $7,000,000 for 
the UTC, and $44,762,900 for NRTP. Within the NRTP--$22,225,000 is 
allocated for specific activities under 49 U.S.C. 5338(d) and in 
section 3046 of SAFETEA-LU. All research and research and development 
projects, as defined by the Office of Management and Budget, are 
subject to a 2.6% reduction for the Small Business Innovative Research 
Program (SBIR). The takedown has been applied where applicable, unless 
the purpose of the project is unclear. A breakdown of NRP funds is 
provided in the table below.

                       National Research Programs
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.......................................   $65,362,900
Funds Allocated for Specific Programs or Activities.......    42,770,660
Small Business Innovative Research Takedown estimate......       200,000
Funds Available for FTA Programming.......................    22,392,240
                                                           -------------
    Total NRP Funding.....................................    65,362,900
------------------------------------------------------------------------

    The project allocations are listed in Table 17.

[[Page 4969]]

2. Program Requirements
    Application Instructions and Program Management Guidelines are set 
forth in FTA Circular 6100.1C. Research projects must support FTA's 
Strategic Research Goals and meet the Office of Management and Budget's 
Research and Development Investment Criteria. All research recipients 
are required to work with FTA to develop approved Statements of Work 
and plans to evaluate research results before award.
    Eligible activities under the NRTP include research, development, 
demonstration and deployment projects as defined by 49 U.S.C. 5312(a); 
Joint Partnership projects for deployment of innovation as defined by 
49 U.S.C. 5312(b); International Mass Transportation Projects as 
defined by 49 U.S.C. 5312(c); and, human resource programs as defined 
by 49 U.S.C. 5322. Unless otherwise specified in law, all projects must 
meet one of these eligibility requirements.
    Problem Statements for TCRP can be submitted on TCRP's Web site: 
http://www.tcrponline.org. Information about NTI courses can be found 
at http://www.ntionline.com. UTC funds are transferred to the Research 
and Innovative Technology Administration to make awards.
3. Period of Availability
    Funds are available until expended.
4. Other Program or Apportionment Related Information and Highlights
    Funds not designated by Congress for specific projects and 
activities will be programmed by FTA based on national priorities. 
Opportunities are posted in http://www.grants.gov under Catalogue of 
Federal Domestic Assistance Number 20.514.

M. Job Access and Reverse Commute Program (49 U.S.C. 5316)

    The Job Access and Reverse Commute (JARC) program provides formula 
funding to States and Designated Recipients to support the development 
and maintenance of job access projects designed to transport welfare 
recipients and low-income individuals to and from jobs and activities 
related to their employment, and for reverse commute projects designed 
to transport residents of UZAs and other than urbanized to suburban 
employment opportunities. For more information about the JARC program 
contact David Schneider, Office of Transit Programs, at (202) 366-2053.
1. Funding Availability in FY 2008
    The Consolidated Appropriations Act, 2008, provides $156,000,000 
for the JARC Program. The total amount apportioned by formula is 
$156,000,000 as shown in the table below.

                 Job Access and Reverse Commute Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................    $156,000,000
                                                         ---------------
    Total Apportioned...................................     156,000,000
------------------------------------------------------------------------

    Table 18 shows the FY 2008 JARC apportionments.
2. Basis for Formula Apportionment
    By law, FTA allocates 60 percent of funds available to UZAs with 
populations of 200,000 or more persons (large UZAs); 20 percent to the 
States for urbanized areas with populations ranging from 50,000 to 
200,000 persons (small UZAs), and 20 percent to the States for rural 
and small urban areas with populations of less than 50,000 persons. FTA 
apportions funds based upon the number of low income individuals 
residing in a State or large urbanized area, using data from the 2000 
Census for individuals below 150 percent of poverty. FTA publishes 
apportionments to each State for small UZAs and for rural and small 
urban areas and a single apportionment for each large UZA.
    The Designated Recipient, either for the State or for a large UZA, 
is responsible for further allocating the funds to specific projects 
and subrecipients through a competitive selection process. If the 
Governor has designated more than one recipient of JARC funds in a 
large UZA, the Designated Recipients may agree to conduct a single 
competitive selection process or sub-allocate funds to each Designated 
Recipient, based upon a percentage split agreed upon locally, and 
conduct separate competitions.
    States may transfer funds between the small UZA and the 
nonurbanized apportionments, if all of the objectives of JARC are met 
in the size area the funds are taken from. States may also use funds in 
the small UZA and nonurbanized area apportionments for projects 
anywhere in the State (including large UZAs) if the State has 
established a statewide program for meeting the objectives of JARC. A 
State planning to transfer funds under either of these provisions 
should submit a request to the FTA regional office. FTA will assign new 
accounting codes to the funds before obligating them in a grant.
3. Requirements
    States and Designated Recipients must solicit grant applications 
and select projects competitively, based on application procedures and 
requirements established by the Designated Recipient, consistent with 
the Federal JARC program objectives. In the case of large UZAs, the 
area-wide solicitation shall be conducted in cooperation with the 
appropriate MPO(s).
    Funds are available to support the planning, capital and operating 
costs of transportation services that are eligible for funding under 
the program. Assistance may be provided for a variety of transportation 
services and strategies directed at assisting welfare recipients and 
eligible low-income individuals address unmet transportation needs, and 
to provide reverse commute services. The transportation services may be 
provided by public, non-profit, or private-for-profit operators. The 
Federal share is 80 percent of capital and planning expenses and 50 
percent of operating expenses. Funds provided under other Federal 
programs (other than those of the U.S. DOT) may be used for local/State 
match for funds provided under section 5316, and revenue from service 
contracts may be used as local match.
    States and Designated Recipients may use up to ten percent of their 
annual apportionment for administration, planning, and to provide 
technical assistance. No local share is required for these program 
administrative funds. Funds used under this program for planning in 
urbanized areas must be shown in the UPWP for MPO(s) with 
responsibility for that area.
    The Designated Recipient must certify that: the projects selected 
were derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public, including those representing the needs of welfare recipients 
and eligible low-income individuals. The locally developed, coordinated 
public transit-human services transportation planning process must be 
coordinated and consistent with the metropolitan and statewide planning 
processes and funding for the program must be included in the 
metropolitan and statewide Transportation Improvement Program (TIP and 
STIP) at a level of specificity or aggregation consistent with State 
and local policies and procedures. Finally, the State must certify that 
allocations of the grant to subrecipients are made on a fair and 
equitable basis.
    The coordinated planning requirement is also a requirement in two

[[Page 4970]]

additional programs. Projects selected for funding under the section 
5310 program and the New Freedom program are also required to be 
derived from a locally developed coordinated public transit-human 
service transportation plan. FTA anticipates that most areas will 
develop one consolidated plan for all the programs, which may include 
separate elements and other human service transportation programs. The 
goal of the coordinated planning process is not to be an exhaustive 
document, but to serve as a tool for planning and implementing 
beneficial projects. The level of effort required to develop the plan 
will vary among communities based on factors such as the availability 
of resources. FTA does not approve coordinated plans.
    The JARC program is subject to the relevant requirements of section 
5307, including the requirement for certification of labor protections. 
FTA issued a new circular for the formula JARC program, FTA C 9050.1, 
dated April 1, 2007 and effective May 1, 2007. This circular which is 
posted on the FTA Web site at http://www.fta.dot.gov supersedes all 
previous interim guidance for the program.
4. Period of Availability
    FTA has established a consistent three-year period of availability 
for JARC, New Freedom, and the section 5310 program, which includes the 
year of apportionment plus two additional years. FY 2008 funding is 
available through FY 2010. Any funding that remains unobligated on 
September 30, 2010 will revert to FTA for reapportionment among the 
States and large UZAs under the JARC program.
5. Other Program or Apportionment Related Information and Highlights
    a. Carryover Earmarks. Table 19 lists prior year carryover of 
$14,337,688 for JARC projects designated by Congress in FYs 2002-2005. 
JARC earmarks carried over from TEA-21 are subject to the terms and 
conditions under which they were originally appropriated, including the 
requirement for a 50 percent local share for both capital and operating 
assistance. All projects should be in a regional JARC Plan as required 
under TEA-21 or in the new local coordinated plan required by the new 
formula JARC program. FTA will award a grant for a designated project 
upon receipt of a complete application, but can honor changes to the 
original designation only if so directed by the Appropriations 
Committee chairs.
    b. Designated Recipient. FTA must have received formal notification 
from the Governor or Governor's designee of the Designated Recipient 
for JARC funds apportioned to a State or large UZA before awarding a 
grant to that area for JARC projects.
    c. Transfers to section 5307 or 5311. States may transfer JARC 
funds to section 5307 or section 5311, but only for projects 
competitively selected under the JARC program, not as a general 
supplement for those programs. FTA anticipates that the States would 
use this flexibility primarily for projects to be implemented by a 
section 5307 recipient in a small urbanized area or for Federally 
recognized Indian Tribes that elect to receive funds as a direct 
recipient from FTA under section 5311. FTA has established a scope code 
(646) to track JARC projects included within a section 5307 or 5311 
grant. Transfer to section 5307 or 5311 is permitted but not required. 
FTA will also award stand-alone section 5316 grants to the State for 
any and all subrecipients. In order to track disbursements accurately 
against the appropriate program, FTA will not combine JARC funds with 
section 5307 funds in a single section 5307 grant, nor will FTA combine 
JARC with New Freedom funds in a single section 5307 grant.
    d. Evaluation. Section 5316(i)(2), as added by SAFETEA-LU, requires 
FTA to conduct a study to evaluate the effectiveness of the JARC 
program. To support the evaluation, annual GAO reports on the program, 
and DOT Performance Measures, while reducing the burden grantees 
previously experienced from separate reporting required for the JARC 
program under TEA-21, FTA has incorporated reporting for performance 
measures into the annual progress report all JARC grantees submit in 
TEAM.

N. New Freedom Program (49 U.S.C. 5317)

    SAFETEA-LU established the New Freedom Program under 49 U.S.C. 
5317, The program's purpose is to provide new public transportation 
services and public transportation alternatives beyond those currently 
required by the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) that assist individuals with disabilities with 
transportation, including transportation to and from jobs and 
employment support services. For more information about the New Freedom 
program contact David Schneider, Office of Transit Programs, at (202) 
366-2053.
1. Funding Availability in FY 2008
    The Consolidated Appropriations Act, 2008, provides $87,500,000 for 
the New Freedom Program. The entire amount is apportioned by formula, 
as shown in the table below.

                           New Freedom Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.......................................   $87,500,000
                                                           -------------
    Total Apportioned.....................................    87,500,000
------------------------------------------------------------------------

    Table 20 shows the FY 2008 New Freedom apportionments.
2. Basis for Formula Apportionment
    By law, FTA allocates 60 percent of funds available to UZAs with 
populations of 200,000 or more persons (large UZAs); 20 percent to the 
States for urbanized areas with populations ranging from 50,000 to 
200,000 persons (small UZAs), and 20 percent to the States for rural 
and small urban areas with populations of less than 50,000 persons. FTA 
apportions funds based upon the number of persons with disabilities 
over the age of five residing in a State or large urbanized area, using 
data from the 2000 Census. FTA publishes apportionments to each State 
for small UZAs and for rural and small urban areas and a single 
apportionment for each large UZA.
    The Designated Recipient, either for the State or for a large UZA, 
is responsible for further allocating the funds to specific projects 
and subrecipients through a competitive selection process. If the 
Governor has designated more than one recipient of New Freedom funds in 
a large UZA, the Designated Recipients may agree to conduct a single 
competitive selection process or sub-allocate funds to each Designated 
Recipient, based upon a percentage split agreed upon locally and 
conduct separate competitions.
3. Requirements
    States and Designated Recipients must solicit grant applications 
and select projects competitively, based on application procedures and 
requirements established by the Designated Recipient, consistent with 
the Federal New Freedom program objectives. In the case of large UZAs, 
the area-wide solicitation shall be conducted in cooperation with the 
appropriate MPO(s).
    Funds are available to support the capital and operating costs of 
new public transportation services and public transportation 
alternatives that are beyond those required by the Americans with 
Disabilities Act. Funds provided under other Federal programs (other 
than those of the DOT) may be used as match for capital funds provided 
under section 5317, and

[[Page 4971]]

revenue from contract services may be used as local match.
    Funding is available for transportation services provided by 
public, non-profit, or private-for-profit operators. Assistance may be 
provided for a variety of transportation services and strategies 
directed at assisting persons with disabilities address unmet 
transportation needs. Eligible public transportation services and 
public transportation alternatives funded under the New Freedom program 
must be both new and beyond the ADA. (In FY 2007, FTA published interim 
guidance holding Designated Recipients harmless for project selections 
conducted in good faith based on FTA's earlier preliminary 
determination that eligible services could be either new or beyond the 
ADA. Grants awarded in FY 2008 are now subject to the requirements of 
the final guidance which was published April 1, 2007.)
    The Federal share is 80 percent of capital expenses and 50 percent 
of operating expenses. Funds provided under other Federal programs 
(other than those of the DOT) may be used for local/state match for 
funds provided under section 5317, and revenue from service contracts 
may be used as local match.
    States and Designated Recipients may use up to ten percent of their 
annual apportionment to administer, plan, and provide technical 
assistance for a funded project. No local share is required for these 
program administrative funds. Funds used under this program for 
planning must be shown in the UPWP for MPO(s) with responsibility for 
that area.
    The Designated Recipient must certify that: The projects selected 
were derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public, including those representing the needs of welfare recipients 
and eligible low-income individuals. The locally developed, coordinated 
public transit-human services transportation planning process must be 
coordinated and consistent with the metropolitan and statewide planning 
processes and funding for the program must included in the metropolitan 
and statewide Transportation Improvement Plan (TIP and STIP) at a level 
of specificity or aggregation consistent with State and local policies 
and procedures. Finally, the State must certify that allocations of the 
grant to subrecipients are made on a fair and equitable basis.
    The coordinated planning requirement is also a requirement in two 
additional programs. Projects selected for funding under the section 
5310 program and the JARC program are also required to be derived from 
a locally developed coordinated public transit-human service 
transportation plan. FTA anticipates that most areas will develop one 
consolidated plan for all the programs, which may include separate 
elements and other human service transportation programs.
    The New Freedom program is subject to the relevant requirements of 
section 5307, but certification of labor protections is not required. 
FTA published a new circular for this program, FTA C 9045.1, which was 
effective May 1, 2007. The circular is posted on the FTA Web site at 
http://www.fta.dot.gov.
4. Period of Availability
    FTA has established a consistent three-year period of availability 
for New Freedom, JARC, and the section 5310 program, which includes the 
year of apportionment plus two additional years. FY 2008 funding is 
available through FY 2010. Any funding that remains unobligated on 
September 30, 2010 will revert to FTA for reapportionment among the 
States and large UZAs under the New Freedom program.
5. Other Program or Apportionment Related Information and Highlights
    a. Designated Recipient. FTA must have received formal notification 
from the Governor or Governor's designee of the Designated Recipient 
for New Freedom funds apportioned to a State or large UZA before 
awarding a grant to that area for New Freedom projects.
    b. Transfers to section 5307 or 5311. States may transfer New 
Freedom funds to section 5307 or section 5311, but only for projects 
competitively selected under the New Freedom program, not as a general 
supplement for those programs. FTA anticipates that the States would 
use this flexibility for projects to be implemented by a section 5307 
recipient in a small urbanized area or for Federally recognized Indian 
Tribes that elect to receive funds as a direct recipient from FTA under 
section 5311. FTA has established a scope code (647) to track New 
Freedom projects included within a section 5307 or 5311 grant. Transfer 
to section 5307 or 5311 is permitted but not required. FTA will also 
award stand-alone section 5317 grants to the State for any and all 
subrecipients. In order to track disbursements accurately against the 
appropriate program, FTA will not combine New Freedom funds with 
section 5307 funds in a single section 5307 grant, nor will FTA combine 
New Freedom with JARC funds in a single section 5307 grant.
    c. Performance Measures. To support the evaluation of the program 
and Departmental reporting under the Governmental Performance and 
Results Act and the Office of Management and Budget's Performance 
Assessment and Rating Tool, FTA has incorporated reporting for 
performance measures into the annual progress report all New Freedom 
grantees submit in TEAM.

O. Alternative Transportation in Parks and Public Lands (49 U.S.C. 
5320)

    The Alternative Transportation in Parks and Public Lands (ATPPL) 
program is administered by FTA in partnership with the Department of 
the Interior (DOI) and the U.S. Department of Agriculture's Forest 
Service. The purpose of the program is to enhance the protection of 
national parks and Federal lands, and increase the enjoyment of those 
visiting them. The program funds capital and planning expenses for 
alternative transportation systems such as buses and trams in 
federally-managed parks and public lands. Federal land management 
agencies and State, tribal and local governments acting with the 
consent of a Federal land management agency are eligible to apply. DOI, 
after consultation with and in cooperation with FTA, determines the 
final selection and funding of projects.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, makes $25 million 
available for the program in FY 2008. Ten percent of the funds are 
reserved for administration and technical assistance. FTA published a 
Notice of Funding Availability (NOFA) in the Federal Register on 
December 13, 2007, inviting applications for projects to be funded in 
FY 2008. Applications are due to FTA on February 29, 2008.
2. Program Requirements
    Projects are competitively selected based on criteria specified in 
the Notice of Funding Availability. The terms and conditions applicable 
to the program are also specified in the NOFA. Projects must conserve 
natural, historical, and cultural resources, reduce congestion and 
pollution, and improve visitor mobility and accessibility. No more than 
25 percent may be allocated for any one project.

[[Page 4972]]

3. Period of Availability
    The funds under the Alternative Transportation in Parks and Public 
Lands remain available until expended.
4. Other Program or Apportionment Related Information and Highlights.
    Project selections for the FY 2007 funding were published in the 
Federal Register on October 15, 2007. Forty-six projects were awarded 
totaling $19,788,840.

P. Alternatives Analysis Program (49 U.S.C. 5339)

    The Alternatives Analysis Program provides grants to States, 
authorities of the States, metropolitan planning organizations, and 
local government authorities to develop studies as part of the 
transportation planning process. These studies include an assessment of 
a wide range of public transportation alternatives designed to address 
a transportation problem in a corridor or subarea; sufficient 
information to enable the Secretary to make the findings of project 
justification and local financial commitment required; the selection of 
a locally preferred alternative; and the adoption of the locally 
preferred alternative as part of the state or regional long-range 
transportation plan. For more information about this program contact 
Ron Fisher, Office of Planning and Environment, at (202) 366-4033.
1. FY 2008 Funding Availability
    The Consolidated Appropriations Act, 2008, provides $24,691,100 to 
the Alternatives Analysis Program (49 U.S.C. 5339).

                      Alternative Analysis Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................     $25,000,000
Ob lim reduction/Rescission.............................        -308,900
                                                         ---------------
    Total Available.....................................      24,691,100
------------------------------------------------------------------------

2. Basis for Allocation of Funds
    SAFETEA-LU designated projects for FY 2006 and FY 2007. There are 
no SAFETEA-LU project designations for FY 2008. The Consolidated 
Appropriations Act, 2008, provided an obligation limitation of 
$24,691,100 derived from reducing the appropriated $25,000,000 by two 
percent. FTA will publish allocations under the Alternative Analysis 
program at a later date.
3. Requirements
    Alternatives Analysis program funds may be made available to 
States, authorities of the States, metropolitan planning organizations, 
and local governmental authorities. The Government's share of the cost 
of an activity funded may not exceed 80 percent of the cost of the 
activity. The funds will be awarded as separate section 5339 grants. 
The grant requirements will be comparable to those for section 5309 
grants. Eligible projects include planning and corridor studies and the 
adoption of locally preferred alternatives within the fiscally 
constrained Metropolitan Transportation Plan for that area. Funds 
awarded under the Alternatives Analysis Program must be shown in the 
UPWP for MPO(s) with responsibility for that area. Pre-award authority 
applies to these funds after Congress appropriates funds for these 
projects and the allocations are published in an FTA notice of 
apportionments and allocations.
    Legislation to amend an FY 2006 or 2007 earmark under section 
3037(c) of SAFETEA-LU is necessary should a recipient wish to use 
section 5339 funds for eligible project activities outside the scope of 
the project description. Unless otherwise specified in law, grants made 
under the Alternatives Analysis program must meet all other eligibility 
requirements as outlined in section 5309.
4. Period of Availability
    Funds designated for specific Alternatives Analysis Program 
projects remain available for obligation for three fiscal years, which 
includes the year of appropriation plus two additional fiscal years. 
The FY 2008 funding for projects included in this notice remains 
available through September 30, 2010. Alternatives Analysis funds not 
obligated in an FTA grant for their original purpose at the end of the 
period of availability will generally be made available for other 
projects.
5. Other Program or Apportionment Related Information and Highlights
    Table 21 lists prior year carryover of $28,560,000 for Alternative 
Analysis projects that was made available in FY 2006 and FY 2007. This 
amount includes $4,351,000 for FY 2006; $12,900,000 for FY 2007; and 
$11,309,000 for discretionary projects funded by FTA using unallocated 
funds from FY 2006 and FY 2007.

Q. Growing States and High Density States Formula Factors

    The Consolidated Appropriations Act, 2008, makes $438,000,000 
available for apportionment in accordance with the formula factors 
prescribed for Growing States and High Density States in section 5340 
of SAFETEA-LU. Fifty percent of this amount (or $219,000,000) is 
apportioned to eligible States and urbanized areas using the Growing 
State formula factors. The other 50 percent is apportioned to eligible 
States and urbanized areas using the High Density States formula 
factors. Based on application of the formulas, $150,159,165 of the 
Growing States funding was apportioned to urbanized areas and 
$68,840,835 to nonurbanized areas. All of the $219,000,000 allotted to 
High Density States was apportioned to urbanized areas.
    The term ``State'' is defined only to mean the 50 States. For the 
Growing State portion of section 5340, funds are allocated based on the 
population forecasts for fifteen years after the date of that census. 
Forecasts are based on the trend between the most recent decennial 
census and Census Bureau population estimates for the most current 
year. Census population estimates as of December 27, 2007 were used in 
the FY 2008 apportionments Funds allocated to the States are then sub-
allocated to urbanized and non-urbanized areas based on forecast 
population, where available. If forecasted population data at the 
urbanized level is not available, as is currently the case, funds are 
allocated to current urbanized and non-urbanized areas on the basis of 
current population in the 2000 Census. Funds allocated to urbanized 
areas are included in their section 5307 apportionment. Funds allocated 
for non-urbanized areas are included in the states' section 5311 
apportionments.

R. Over-the-Road Bus Accessibility Program (49 U.S.C. 5310 Note)

    The Over-the-Road Bus Accessibility (OTRB) Program authorizes FTA 
to make grants to operators of over-the-road buses to help finance the 
incremental capital and training costs of complying with the DOT over-
the-road bus accessibility final rule, 49 CFR Part 37, published on 
September 28, 1998 (63 FR 51670). FTA conducts a national solicitation 
of applications, and grantees are selected on a competitive basis. For 
more information about the OTRB program contact Blenda Younger, Office 
of Transit Programs, at (202) 366-2053.
1. Funding Availability in FY 2008
    The Consolidated Appropriations Act, 2008, provides $8,300,000 for 
the Over-the-Road Bus Accessibility (OTRB) Program, which is the total 
amount allocable for OTRB, as shown in the table below.

[[Page 4973]]



                 Over-the-Road Bus Accessibility Program
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Appropriation.....................................      $8,300,000
Funds Available for Competitive Allocation..............       8,300,000
------------------------------------------------------------------------

    Of this amount, $6,225,000 is allocable to providers of intercity 
fixed-route service, and $2,075,000 to other providers of over-the-road 
bus services, including local fixed-route service, commuter service, 
and charter and tour service.
2. Program Requirements
    Projects are competitively selected. The Federal share of the 
project is 90 percent of net project cost. Program guidance is provided 
in the Federal Register notice soliciting applications. In the Notice 
of Funding Availability (NOFA) for FY 2007 funds, published on 
September 14, 2007, FTA reserved the right to use applications received 
in response to that Notice to allocate FY 2008 funds as well, depending 
on the timing of the Appropriations Act. Applications were due by 
November 13, 2007. Since FTA has not yet announced FY 2007 funding 
selections, we will allocate FY 2007 and 2008 funds to applicants who 
responded to the FY 2007 NOFA. We will publish a notice in the near 
future announcing these project selections. Assistance is available to 
private operators of over-the-road buses used substantially or 
exclusively in intercity, fixed route, over-the-road bus service, and 
to private operators of over-the-road buses in other services, such as 
charter, tour, and commuter service. Capital projects eligible for 
funding include projects to add lifts and other accessibility 
components to new vehicle purchases and to purchase lifts to retrofit 
existing vehicles. Eligible training costs include developing training 
materials or providing training for local providers of over-the-road 
bus services.
3. Period of Availability
    FTA has observed that some private operators selected to receive 
funding under this program have not acted promptly to obligate the 
funds in a grant and request reimbursement for expenditures. While the 
program does not have a statutory period of availability, as of this 
Notice FTA is limiting the period of availability to a selected 
operator to three years, which includes the year of allocation, plus 
two additional years. Funds for project selections announced in FY 2008 
will be reallocated if not obligated in a grant by September 30, 2010. 
Funds for projects selected in FY 2006 or prior years will be 
reallocated in FY 2009 if not obligated in a grant by September 30, 
2008.
4. Other Program or Apportionment Related Information and Highlights
    FTA is currently evaluating proposals submitted in response to the 
FY 2007 solicitation and will publish successful applicants for FY 2007 
and FY 2008 funding in the Federal Register in the second quarter of FY 
2008. The notice will be available at