Capital Program: Grant Application Instructions, Septamber 29, 1995

Circular FTA C 9300.1
U.S. Department of Transportation
Federal Transit Administration

September 29, 1995

Subject: CAPITAL PROGRAM: GRANT APPLICATION INSTRUCTIONS

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PURPOSE. This circular describes the Capital Program administered by the Federal Transit Administration (FTA) and provides guidance for applying for grants under the Capital Program. The program is authorized by 49 U.S.C. § 5309 (formerly Section 3 of the Federal Transit Act, as amended). The circular addresses the requirements that must be fulfilled in the application for Section 5309 capital program assistance and gives information about the basis for those requirements.
CODIFICATION OF FEDERAL TRANSIT LAWS. In July 1994, Federal transit laws were codified in chapter 53 of Title 49, United States Code. The codification repealed the Federal Transit Act, as amended, without substantive change; that is, the original meaning of any provision in the Federal Transit Act is unchanged, even though the new language in some instances differs from that of the Federal Transit Act. As the circular goes to print, readers may not have had sufficient time to become wholly familiar with the newly enacted codification. Therefore, while references to the codification are used in the text, we have added cross references in the margins to the corresponding sections of the former Federal Transit Act.
REFERENCES.
1. Federal transit laws, 49 U.S.C. chapter 53.
2. Federal highway and surface transportation laws, Title 23, United States Code.
3. Intermodal Surface Transportation Efficiency Act of 1991, Pub. L. No. 102-240, 105 Stat. 1914, Dec. 18, 1991 (codified as amended by Pub. L. 103-272, 108 Stat. 745, July 5, 1994, in scattered sections of 49 and 23 United States Code).
4. Lobbying disclosure provisions of 31 U.S.C. § 1352.
5. Clean Air Act, as amended, 42 U.S.C. §§ 7401 et seq. and scattered sections of 29 United States Code.
6. Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq.
7. Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794.
8. National Environmental Policy Act of 1969, as amended, 42 U.S.C. §§ 4321 et seq.
9. Section 106 of the National Historic Preservation Act, 16 U.S.C. § 470f.
10. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. §§ 4601 et seq.
11. U.S. Department of Transportation (DOT) regulations, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments," 49 C.F.R Part 18.
12. U.S. DOT regulations, "New Restrictions on Lobbying," 49 C.F.R. Part 20.
13. U.S. DOT regulations, "Participation by Minority Business Enterprise in Department of Transportation Programs," 49 C.F.R. Part 23.
14. U.S. DOT regulations, "Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs," 49 C.F.R. Part 24.
15. U.S. DOT regulations, "Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance," 49 C.F.R. Part 27.
16. U.S. DOT regulations, "Governmentwide Debarment and Suspension (Nonprocurement) and Governmentwide Requirements for Drug-free Workplace (Grants)," 49 C.F.R. Part 29.
17. U.S. DOT regulations, "Transportation Services for Individuals with Disabilities (ADA)," 49 C.F.R. Part 37.
18. U.S. DOT regulations, "Americans with Disabilities Act (ADA) Accessibility Specifications for Transportation Vehicles," 49 C.F.R. Part 38.
19. U.S. DOT regulations, "Procedures for Transportation Workplace Drug Testing Programs," 49 C.F.R. Part 40.
20. U.S. DOT regulations, "Seismic Safety," 49 C.F.R. Part 41.
21. FTA regulations, "Charter Service," 49 C.F.R. Part 604.
22. FTA regulations, "School Bus Operations," 49 C.F.R. Part 605.
23. FTA regulations, "Uniform System of Accounts and Records and Reporting System," 49 C.F.R. Part 630.
24. FTA regulations, "Prevention of Prohibited Drug Use in Transit Operations," 49 C.F.R. Part 653.
25. FTA regulations, "Prevention of Alcohol Misuse in Transit Operations," 49 C.F.R. Part 654.
26. FTA regulations, "Project Management Oversight," 49 C.F.R. Part 633.
27. FTA regulations, "Capital Leases," 49 C.F.R. Part 639.
28. FTA regulations, "Buy America Requirements -- Surface Transportation Assistance Act of 1982, as amended," 49 C.F.R. Part 661.
29. FTA regulations, "Pre-Award and Post-Delivery Audits of Rolling Stock Purchases," 49 C.F.R. Part 663; and FTA Disposition of Inquiries, "Pre-Award and Post-Delivery Audits of Rolling Stock Questions and Answers," 57 Fed. Reg. 10834 (1992).
30. FTA regulations, "Bus Testing," 49 C.F.R. Part 665.
31. Joint Federal Highway Administration (FHWA)/FTA regulations, "Planning Assistance and Standards," 23 C.F.R. Part 450 and 49 C.F.R. Part 613 (specifically, Subpart B, "Statewide Transportation Planning," and Subpart C, "Metropolitan Transportation Planning and Programming").
32. Joint FHWA/FTA regulations, "Management and Monitoring Systems," 23 C.F.R. Part 500 and 49 C.F.R. Part 614.
33. Joint FHWA/FTA regulations, "Environmental Impact and Related Procedures," 23 C.F.R. Part 771 and 49 C.F.R. Part 622.
34. Environmental Protection Agency (EPA) regulations, "Requirements for Preparation, Adoption, and Submittal of Implementation Plans," 40 C.F.R. Part 51 (specifically, Subpart T, "Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded or Approved Under Title 23 U.S.C. or the Federal Transit Act").
35. EPA regulations, "Determining Conformity of Federal Actions to State or Federal Implementation Plans," 40 C.F.R. Part 93.
36. Department of Labor, "Guidelines, Section 13(c), Urban Mass Transportation Act of 1964, as amended," 29 C.F.R. Part 215.
37. Office of Management and Budget (OMB ) Circular A-128, "Audits of State and Local Governments," dated 4-12-85.
38. FTA Circular 4220.1C, "Third Party Contracting Requirements," dated 9-22-95.
39. FTA Circular 4702.1, "Title VI Program Guidelines for Federal Transit Administration Recipients," dated 5-26-88.
40. FTA Circular 4704.1, "Equal Employment Opportunity Program Guidelines for Grant Recipients," dated 7-26-88.
41. FTA Circular 4716.1A, "Disadvantaged Business Enterprise Requirements for Recipients and Transit Vehicle Manufacturers," dated 7-26-88.
42. FTA Circular 5010.1B, "Grant Management Guidelines," dated 9-7-95.
43. FTA Circular 5200.1, "Full Funding Grant Agreements Guidance," dated 7-2-93.
44. FTA Circular 7008.1 "Urban Mass Transportation Financial Capacity Policy," dated 3-30-87.
45. FTA Circular 7010.1, "Capital Cost of Contracting," dated 12-5-86.
46. FTA Circular 9030.1A, "Section 9 Formula Grant Application Instructions," dated 9-18-87, as amended by Change 1 dated 2-7-95.
47. FTA Circular 9040.1C, "Section 18 Program Guidance and Grant Application Instructions," dated 11-3-92.
48. FTA Circular 9400.1A, "Design and Art in Transit Projects," dated 6-9-95.
49. FTA Circular 9500.1, "Intergovernmental Review of FTA Planning, Capital and Operating Programs and Activities," dated 3-30-84.
50. FTA report "Flexible Funding Opportunities for Transportation Investments."
51. FTA Notice "Policy Statements on Local Share Issues," 57 Fed. Reg., 30880 (1992).
52. FTA Notice, "Change in Policy on Sale and Replacement of Transit Vehicles," 57 Fed. Reg., 39328 (1992).
53. "Policy Statement on Eligibility for Funding of Warranties on Heavy-Duty Buses; Clarification," 58 Fed. Reg., 6446 (1993).
54. FTA Policies and Procedures Manual, "GMIS-90's Electronic Grants Management System," 1995.

Gordon J. Linton

Administrator

Chapter I. Introduction and Background
Chapter II. How to use this Circular
Chapter III. Buses and Related Acquisitions
Chapter IV. Fixed Guideway Modernization
Chapter V. New Starts
Chapter VI. Requirements Common to all Capital Program Grant Applications
Chapter VII. Grant Application Contents
Chapter VIII. Instructions for Preparing a Project Budget
Chapter IX. Examples
Chapter X. Regional Offices
Appendix A. Relationship Between Capital Program Grants and the Metropolitan and Statewide Planning Process
Appendix B. Joint Development Projects
Appendix C. Annual Certifications and Assurances

CHAPTER I - INTRODUCTION AND BACKGROUND
CONTENTS

THE FEDERAL TRANSIT ADMINISTRATION
FEDERAL TRANSIT LAWS
AUTHORIZATION LEGISLATION
THE CAPITAL PROGRAM
1. Categories of Funding
2. Eligible Applicants
3. Eligible Projects
  1. Assets for Which FTA Provides Assistance
  2. Additional Eligible Project Activities
  3. Purposes for Which FTA Provides Assistance
4. Demand for Capital Program Funds
5. Emphasis Areas
6. Number of Capital Program Grants
7. Division of Capital Program Funds
8. Announcement of Apportionments
9. Federal and Local Shares for a Project
10. Federal Share for Vehicle-Related Equipment
11. Credit for Toll Revenue Expenditures
12. Deferred Payment of Local Share
13. Alternative Financing
14. Annual Certification Process
  1. Action Required
  2. Timing
ELECTRONIC PROGRAMS

CHAPTER I
INTRODUCTION AND BACKGROUND

THE FEDERAL TRANSIT ADMINISTRATION. The Federal Transit Administration (FTA) is one of nine operating administrations within the U.S. Department of Transportation. FTA employs approximately 460 people to administer its programs. In recent years, FTA has received annual appropriations from the Congress exceeding $3 billion to be applied to transit projects throughout the U.S.A. and its various possessions. Headquarters offices are located at 400 7th Street, S.W., Washington, D.C. 20590.
FTA has 10 Regional Offices, each headed by a Regional Administrator, with staff numbering from 10 to 20 employees. The Regional Offices form a local presence to provide assistance in the development of transit projects, review grant applications, and monitor grants awarded by FTA. The locations and telephone numbers of the Regional Offices and the states they serve are listed in Chapter X of this circular. Capital Program applications must be submitted to the appropriate Regional Office.
FEDERAL TRANSIT LAWS. For 30 years the legislation establishing and governing the FTA and its programs has resided in the Federal Transit Act of 1964, as amended. FTA and its grant recipients ("grantees") referred to this legislation as "the Act." In July 1994, the President signed Public Law 103-272, which repealed the Federal Transit Act and related transit provisions and reenacted them as chapter 53 of title 49, United States Code. In this circular, the new law will be referred to as "the Code." The former law will be referred to as "the Act." The section of chapter 53 which governs the Capital Program, formerly referred to as Section 3 of the Act, is Section 5309. The citation for Section 5309 will look like this: 49 U.S.C. § 5309. In those chapters of the circular that contain many references, citations have been placed in the margins to improve readability of the text and to assist readers unfamiliar with the new terminology.
Copies of the new chapter 53 of the Code are available in FTA Regional Offices, as is an index that makes clear the correspondence between the sections of the former Act and the sections of the new codification.
AUTHORIZING LEGISLATION. Authorizing legislation is substantive legislation enacted by Congress that sets up or continues the legal operation of a Federal program or agency. FTA's most recent authorizing legislation is the Intermodal Surface Transportation Efficiency Act of 1991, as amended (1) (ISTEA). The ISTEA authorizes FTA programs from Federal Fiscal Year 1992 through Fiscal Year 1997.
THE CAPITAL PROGRAM.
1. Categories of Funding. Under Section 5309 of title 49, United States Code (2), the Secretary of Transportation is authorized to make grants to assist in financing capital projects that will benefit the country's transit systems. The Secretary has delegated that authority to the FTA Administrator. Funding from Congress is addressed to the following three categories of projects (3):
  1. Bus and bus-related facilities;
  2. Modernization of fixed guideway systems; and
  3. Construction of new fixed guideway systems and extensions
  These three funding categories together form the FTA Capital Program (4).
2. Eligible Applicants. Public bodies and agencies (transit authorities and other state and local public bodies and agencies thereof) may apply for Capital Program assistance authorized by 49 U.S.C. § 5309 (5). Eligible public bodies include: states; municipalities, and other political subdivisions of States; public agencies and instrumentalities of one or more states; and certain public corporations, boards, and commissions established under state law.
  States are encouraged to combine the transit capital needs of non-urbanized areas into one Capital Program grant application.
3. Eligible Projects.
  1. Assets for Which FTA Provides Assistance. Although not an exhaustive list, the following are typical eligible projects under the bus, fixed guideway modernization, and new starts categories of the Capital Program.
    The major purchases under bus and related facilities are buses and other rolling stock, ancillary equipment, the construction of bus facilities (i.e., maintenance facilities, garages, storage areas, waiting facilities and terminals, transit malls and centers, transfer facilities, and intermodal facilities). This category also includes bus rehabilitation and leasing, park- and-ride facilities, parking lots associated with transit facilities, and bus passenger shelters.
    Typically funded under fixed guideway modernization are infrastructure improvements such as track and right of way rehabilitation, modernization of stations and maintenance facilities, rolling stock purchase and rehabilitation, and signal and power modernization.
    Capital projects supporting new fixed guideway systems ("new starts") or extensions may include preliminary engineering, acquisition of real property (including relocation costs), final design and construction, and initial acquisition of rolling stock for the system.
  2. Additional Eligible Project Activities.
    1. Education and Training. Capital Program funds may also be used for education and training purposes as described in 49 U.S.C. § 5315(d). (6)
    2. Design and Art in Transit. Capital Program funds may be used to incorporate design and artistic considerations into transit projects (7).
    3. Innovative Financing. Capital Program funds may be used to pay for costs incurred to secure or initiate an innovative financing technique (see paragraph 4m below).
    4. Capital Cost of Contracting (8). Also included as an eligible project cost is the "capital cost of contracting;" that is, when a grantee contracts with another party for service, depreciation and interest costs related to the facilities or equipment used by the contractor to provide the service are considered eligible for capital assistance by FTA when the services are obtained through competitive procurement. The eligible capital component is limited to the capital consumed in the contracted service. (Capital consumed in the provision of service outside the transit portion of the contract, such as for charter or school bus service, is not eligible.) The reader should note that interest is an eligible cost only to the extent that the interest is part of the capital cost of contracting or to the extent that the interest is part of a leasing contract as noted in the paragraph below.
    5. Leasing. When a grantee leases tangible capital assets from another party, leasing costs are eligible for capital assistance, provided leasing is more cost effective than purchase or construction (9). Leasing costs eligible for capital assistance include finance charges, including interest, and ancillary costs such as delivery and installation charges.
    6. Rail Trackage Agreements. Capital portions of rail trackage rights agreements are also eligible for Capital Program assistance (a provision of the Department of Transportation and Related Agencies Appropriations Act, 1995) (10).
  3. Purposes for Which FTA Provides Assistance. The Code at 49 U.S.C. § 5309(a) (11) provides a list of activities eligible for FTA assistance for the following purposes:
    1. Capital projects needed for efficient and coordinated transportation systems. Examples include replacement of transit buses or facilities, or construction of a bus transfer facility that links to a subway system.
    2. Capital costs of coordinating transit with other transportation. An example might be transit linkages to an airport or to intercity passenger rail services.
    3. Introduction of new technology. An example may be a project to introduce into transit service alternative-fuel buses.
    4. Transportation projects that enhance urban economic development or incorporate private investment (12). This category can include "joint development projects," i.e., projects that involve a public/private partnership and result in a higher return on investment for both the public and private sector dollar. These types of projects must enhance the effectiveness of a transit project and must be related "physically or functionally" to the transit project, or they must establish new or enhanced coordination between transit and other forms of transportation (13). (See Appendix B for discussion of joint development projects and explanation of "physically" or "functionally" related.)
      Grants awarded for the purpose of enhancing economic development and incorporating the private sector must require that the "person" (entity, organization) occupying space in the resulting facility pay a reasonable share of costs of the facility (14). Eligible costs for projects with this purpose include property acquisition, demolition of existing structures, site preparation, utilities, building foundations, walkways, open space, and the acquisition of facilities and equipment for intermodal transfer facilities and transit malls (15). Eligible costs do not include construction of a commercial revenue-producing facility or a part of a public facility not related to transit (16).
    5. Projects that meet special needs of the elderly and persons with disabilities.
    6. Projects to support the development of corridors to support fixed guideway systems (17). Such projects may include acquiring rights of way, construction of dedicated bus and high-occupancy vehicle (HOV) lanes, and park and ride lots. These projects may also include "nonvehicular" improvements that will increase transit use in the corridor. An example might be additional safety features that would encourage riders to use transit, walkways and pathways that make transit more readily available, and day care facilities that would improve the livability of a community and increase the benefits transit offers.
4. Demand for Capital Program Funds. The level of demand for Capital Program funds has long exceeded the dollars available, and demand has increased over recent years. In a recent year, for example, funds requested in grant applications for the bus portion of the Capital Program exceeded funding available by nearly 4 to 1.
5. Emphasis Areas. FTA from time to time will establish areas of emphasis to which it will give priority. These emphasis areas are typically aimed at improving customer service, increasing transit capacity, or enhancing transit operations. In 1994, for example, FTA established the "livable communities initiative" to emphasize the FTA goal of strengthening the link between transit and communities. This initiative promotes customer-friendly, community-oriented, and well-designed transit facilities and services. Transit projects that support the concept of livable communities are expected to enhance personal mobility, increase transit patronage, and improve the quality of community life. Community-sensitive transit projects are ones that support mixed-use development and incorporate on-site services to help foster livable communities. It is important that the transit investments reinforce land use policies that encourage transit-oriented development. Other examples of transit projects that enhance community livability are those that contain pedestrian-oriented physical improvements and enhance the convenience and security of transit customers.
  Authority for livable communities projects, as for joint development projects, rests in 49 U.S.C. §§ 5309(a)(5) and (f)(2) (18) and in 49 U.S.C. 5309(a)(7).(19)
  See Appendix B for further discussion on joint development projects.
6. Number of Capital Program Grants. Capital Program grants represent about 10 percent of the number of grants awarded by FTA in a fiscal year. In a typical year, 120 Capital Program grants may be awarded out of a total of 1,200 FTA grants awarded. Capital Program funds represent approximately one-third of the total FTA annual budget.
7. Division of Capital Program Funds. The ISTEA requires Capital Program funds to be made available in the proportions shown below. Annual appropriations acts may alter slightly these percentages.
  1. Bus and bus-related facilities - 20 percent
  2. Fixed guideway modernization - 40 percent
  3. New starts - 40 percent
  Of the amount available for the bus category, at least 5.5 percent must be made available for areas other than urbanized areas.
  Up to 3/4 of 1 percent of the funds appropriated under these categories is set aside for FTA project oversight activities (20).
8. Announcement of Apportionments. By statute (21), FTA must apportion funds appropriated for the Urbanized Area Formula Program for any fiscal year no later than the 10th day following the date on which the funds are appropriated or on October 1 of the fiscal year, whichever is later. Apportionments for fixed guideway modernization projects are included by the FTA in the Federal Register notice announcing the urbanized area formula apportionments.
9. Federal and Local Shares for a Project. The Federal share for any project to be assisted under the Capital Program is an amount equal to 80 percent of the net project cost, unless the grant applicant requests a lower Federal grant percentage. The net project cost is that portion of the cost of a project that FTA estimates cannot be reasonably financed from revenues. The remainder of the net project cost must be provided, in cash, from sources other than Federal funds unless another Federal statute permits the use of specific Federal funds for local share. Any funds from public or private transit systems must be from undistributed cash surpluses, replacement or depreciation funds, or reserves available in cash, or new capital. The market value of real property integral to the project can be counted as a cash contribution toward local share, as can in-kind contributions. Detailed rules for eligibility, valuation, and accounting for the local matching share are described in section 18.24 of U.S. DOT regulations, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments," 49 C.F.R. Part 18. This document is referred to as the "Common Rule."
  There are four types of exceptions to the 80 percent Federal share for Capital Program projects. These exceptions are as follows:
  1. As noted in the paragraph above, for reasons particular to the needs of a local area or to a state, a grant applicant may request a Federal share below 80 percent of the net project cost.
  2. The Federal share is 90 percent (22) of the net project cost of vehicle-related equipment acquired in order to be in compliance with the Americans with Disabilities Act of 1990 (ADA). (See paragraph j below.).
  3. The Federal share is 90 percent (23) for vehicle-related equipment acquired to be in compliance with the Clean Air Act Amendments of 1990 (CAA Amendments). (See paragraph j below.)
  4. The Federal share is 90 percent for capital projects used to provide access for bicycles to transit facilities, or to install racks or other equipment for transporting bicycles on transit vehicles (24).
10. Federal Share for Vehicle-related Equipment. Grant applicants proposing to purchase rolling stock may itemize discrete, vehicle-related equipment (such as lifts or particulate traps) to be purchased to be in compliance with the ADA or the CAA Amendments and request a Federal share of 90 percent for the cost of the vehicle-related equipment. Alternatively, for bus or van purchases, a grant applicant may request an 83 percent share of the total vehicle cost. The 83 percent is a blended figure representing 80 percent of the cost of the vehicle and 90 percent of the cost of the vehicle-related equipment to be acquired to be in compliance with the ADA or CAA Amendments. FTA considers vehicle-related equipment to be equipment on the vehicle.
11. Credit for Toll Revenue Expenditures. Section 1044 of the ISTEA (25) permits a state to count as credit toward a project's local share certain expenditures the state has made with toll revenues. The amount of credit toward local share to be earned by a state is based on revenues generated by toll authorities within the state that are used by the authorities to build, improve, or maintain highways, bridges, or tunnels that serve interstate commerce. The state has four fiscal years to use the credit. A grant applicant wishing to apply the provisions of Section 1044 should discuss with its state Department of Transportation the availability of toll credits for use as local share in matching FTA grants. The Federal Highway Administration (FHWA) oversees the determination of toll revenue credit within each state.
12. Deferred Payment of Local Share. Applicants may request that the local share for a project be deferred until 100 percent of the Federal funds approved have been drawn down. FTA approval of a deferral is contingent upon the deferral's resulting in benefits to transit and upon the grant applicant's demonstration that the applicant has the financial capacity to complete the project. A grant applicant wishing to defer the local share in a Capital Program project should follow the instructions given in the Federal Register Notice dated July 10, 1992, "Policy Statements on Local Share Issues," Vol. 57, pages 30880-30881.
13. Alternative Financing. Grant applicants--especially applicants wishing to undertake major projects--are encouraged to explore alternative and innovative methods of financing transit projects. Alternative financing can involve combining multiple, nontraditional sources of funding--Federal, state, local, and private--in support of transit capital and operating needs. Some approaches grant applicants might investigate include leasing arrangements, joint development, state economic development or revolving loan funds, exchanges of real property, and in-kind contributions (26).
14. Annual Certification Process. FTA has consolidated into a single document all certifications and assurances required as a precondition for award under its grant programs. The single-document approach replaces former procedures; it is expected to reduce paper and time required in the grant application process. At the beginning of each Federal fiscal year, FTA will publish in the Federal Register the certifications and assurances required for its programs on the date that it announces the Urbanized Area Formula Program (27) and Capital Program formula apportionments in the Federal Register.
  1. Action Required. The authorized representative of the grant applicant must make the requisite certifications by:
    1. submitting the signature page at the end of the document, signed by the authorized representative and by the applicant's legal counsel, and
    2. selecting from a list provided in the document those certifications that will apply to the grant applicant's grants for the fiscal year.
  2. Timing. Each year at the beginning of the fiscal year, FTA will prepare the certifications and assurances required and publish the collection in the Federal Register, highlighting any changes or additions over the previous year. FTA will expect to receive the signature page and listing anew from each grantee
    1. by the first-quarter application submission date published in the fiscal year apportionment announcement or
    2. with the first grant application for the fiscal year.
    The certifications and assurances the grant applicant submits to FTA will remain valid for one year or until FTA publishes the next version of the listing and the certifications.
    For convenience of the reader, a fair representation of the text of the Fiscal Year 1996 certifications and assurances is provided as a reference in Appendix C of the circular. The specific text of a particular certification may change, but at the time of the circular's publication FTA expects no fundamental change to the substance of the certifications and assurances presented in Appendix C. When a Capital Program grant application requires information that can be derived from a certification or assurance, the reader will be directed to the appropriate paragraphs of Appendix C. The certifications and assurances are published each year in the Federal Register with the FTA annual notice of apportionments and allocations. When the grant applicant makes its certifications, the applicant should obtain a copy of the Federal Register Notice containing the current year certifications and use the Federal Register version for submitting the actual certifications.
ELECTRONIC PROGRAMS. FTA has introduced two new electronic programs for grant applicants. The On-Line Grantee Program is offered to applicants through the Grant Management Information System (GMIS). This is a computerized system designed to assist the grantee with the management of grant projects and budgets, which includes financial status and milestone/narrative reporting. All grant applicants are encouraged to participate in the On-Line Grantee Program, which includes the opportunity to electronically certify compliance for the certifications and assurances shown in Appendix C.
The Electronic Grant Making and Management Initiative (EGMM) is a new program that has been offered as a pilot program to selected grantees, who then are able to apply for a grant electronically. Both programs are designed to aid grant applicants by reducing time and paper.

Chapter Notes

Public Law 102-240, December 18, 1991
formerly Section 3 of the Federal Transit Act, as amended (the "Act")
allocated in 49 U.S.C. § 5309(m)(1), formerly Section 3(k)(1) of the Act
formerly Section 3
formerly Section 3
formerly Section 29
See FTA Circular 9400.1, "Design and Art in Public Transportation Projects", dated January 19, 1981.
See FTA Circular 7010.1,"Capital Cost of Contracting," dated December 5, 1986.
49 CFR Part 639, "Capital Leases."
Public Law 103-331
formerly Section 3(a)(1)
49 U.S.C. § 5309(a)(5), formerly in Section 3(a)(1)(D)
49 U.S.C. § 5309 (a)(5)(B), formerly in Section 3(a)(1)(D)
See 49 U.S.C. § 5309(f)(1), formerly Section 3(a)(1)(D)
49 U.S.C. § 5309(f)(2)(A), formerly Section 3(a)(1)(D)
49 U.S.C. § 5309(f)(2)(B), formerly Section 3(a)(1)(D)
49 U.S.C. § 5309(a)(7), formerly Section 3(a)(1)(F)
formerly Section 3(a)(1)(D)
formerly Section 3(a)(1)(F)
49 U.S.C. § 5327(c)(1), formerly Section 23(a)
49 U.S.C. § 5336(e), formerly Section 9(q)
49 U.S.C. § 5323(i), formerly Section 12(m)
49 U.S.C. § 5323(i), formerly Section 12(m)
49 U.S.C. § 5319, formerly Section 25
23 U.S.C. § 101
See FTA Notice, "Innovative Financing Initiative," 60 Fed. Reg. 24682 et seq., May 9, 1995
49 U.S.C. § 5307, formerly Section 9

Return to Chapter I Contents

Return to Circular Table of Contents

CHAPTER II - HOW TO USE THIS CIRCULAR
TABLE OF CONTENTS

PURPOSE
CONTENTS
APPENDICES
INDEX
NOTES TO READER

CHAPTER II
HOW TO USE THIS CIRCULAR

PURPOSE. The purpose of this circular is to assist grant applicants in preparing a complete application for a Capital Program grant authorized by 49 U.S.C. § 5309 (1) and administered by the Federal Transit Administration (FTA). The circular is addressed, in particular, to applicants that have never before applied for an FTA grant under the Capital Program. Separate chapters provide descriptions of each of the three categories of the Capital Program--bus and bus-related facilities, fixed guideway modernization, and new starts--and discuss the grant application requirements associated with each category. An experienced grant applicant already familiar with the statutory and regulatory requirements of the Capital Program category for which the applicant is applying may wish to turn directly to Chapter VII, "Grant Application Contents," and Chapter IX, "Examples," and use these chapters as its guides to a complete Capital Program grant application.
CONTENTS. Chapters III, IV, and V, respectively, describe the requirements that must be met in any bus, fixed guideway modernization, or new start project application. For example, in Chapter III statutory and regulatory requirements specific to bus and bus-related projects are described. Similarly, Chapter IV focuses on grant applications for fixed guideway modernization projects. Chapter V summarizes the steps in new start projects and identifies statutory and regulatory requirements peculiar to new starts.
Chapter VI describes in some detail the requirements common to every Capital Program application; these requirements must be met by all applicants for Capital Program funds. Requirements peculiar only to one category of the Capital Program, or peculiar by degree or threshold to only one category of the Capital Program, are addressed in the chapter on the individual category.
Chapter VII discusses the contents of a grant application and provides a checklist a grant applicant may use in determining the appropriate documents to submit in connection with its application.
Chapter VIII contains instructions for preparing a proposed project budget.
Chapter IX contains examples a grant applicant may copy or use as a guide in complying with the grant application requirements. The examples are presented in alphabetical order by title.
Chapter X lists addresses and telephone numbers of the 10 FTA Regional Offices and identifies the states each Regional Office serves.
APPENDICES. Appendix A discusses the planning requirements of 49 U.S.C. §§ 5303 - 5306 (2) and joint FHWA/FTA planning regulations (3) as they affect the award of Capital Program grants. Appendix B describes the characteristics and requirements of joint development projects, projects that are physically or functionally related to the transit project and that enhance the effectiveness of the transit project. Appendix C describes the annual certification and assurance process introduced by FTA in Fiscal Year 1995 and contains a fair representation of the text of certifications and assurances for all FTA grant programs for Fiscal Year 1996.
INDEX. An index to topics in the circular and their location forms the final pages.
NOTES TO READER. Before reading the circular, first-time grant applicants are encouraged to turn to Chapter X, "Regional Offices," select the FTA Regional Office responsible for the applicant's locality, and telephone that office to discuss the kind of project planned. Nothing can substitute for discussion with FTA field staff as a way to learn quickly the critical path in the grant application process. That done, the grant applicant can return to the circular for, it is hoped, a more meaningful read.
The statements included in the circular reflect typical project situations. Space does not permit FTA's addressing each circumstance meriting an exception to FTA standard practices. Hence, instructions given and policy statements appearing in the circular are not intended to be read as inflexible FTA mandates. They are, instead, set forth as guidelines FTA generally applies to typical projects.
To the extent permitted by law, the Federal Transit Administrator reserves the right to waive any provision of this circular.
While the major purpose of the circular is to describe the current grant application requirements for Capital Program assistance, because laws and regulations may change these requirements, the grant applicant is encouraged to discuss the requirements with FTA Regional Office staff, to determine whether any additional requirements must be met or changes have been introduced since publication of the circular.
Moreover, the reader is cautioned that in the majority of instances the circular highlights only the salient points of laws and regulations that apply to Capital Program grant applications, seldom the details or the subtleties. Therefore, whenever a question about a requirement arises, or whenever a grant applicant needs clarification about a particular statute, regulation, or directive, in addition to discussing the requirement with the appropriate Regional Office, the grant applicant is urged to review the document itself.

Chapter Notes

formerly Section 3 of the Federal Transit Act, as amended ("the Act")
formerly Sections 8, 3(e), and 9(e) of the Act
23 C.F.R. Part 450 and 49 C.F.R. Part 613

Return to Chapter II Contents

Return to Circular Table of Contents

CHAPTER III - BUSES AND RELATED ACQUISITIONS
TABLE OF CONTENTS

INTRODUCTION
COMPETITION FOR FUNDS
1. Flexible Funds
2. Combining Applications
PRIOR USE OF FORMULA FUNDS
LENGTH OF TIME FUNDS ARE AVAILABLE
ELIGIBLE PROJECTS
ENVIRONMENTAL CONSIDERATIONS
1. Categorical Exclusions
2. Projects That May Have an Environmental Impact
3. Clean Air Act Compliance
LEAD TIME NEEDED FOR PURCHASING NEW BUSES
REQUIREMENTS RELATED TO BUS PURCHASES
1. Requirements Related to Local Bus Fleets
  1. Service Life Policy
  2. Replacement Policies
  3. Rebuilding Policies
  4. Spare Ratio Policies
  5. Contingency Fleet
2. Requirements Related to Purchase of New Buses
  1. Fleet and Service Expansion
  2. Eligibility of Components for Funding
  3. Warranties
  4. Pre-Award and Post-Delivery Review of Buses
  5. Bus Testing
  6. Buy America
3. Requirements Related to Buses in Service
  1. Commercial Driver's License
  2. Charter Operations
  3. School Bus Operations
4. Requirements Related to Accessory and Miscellaneous Equipment
REQUIREMENTS RELATED TO BUS FACILITIES
1. General Philosophy
2. Examples
3. Facility Size
4. Project Staging
5. Planning Justifications
  1. Passenger Amenities
  2. Maintenance and Administrative Facilities
EXPECTED TIMEFRAME FOR A BUS FACILITIES PROJECT

CHAPTER III
BUSES AND RELATED ACQUISITIONS

INTRODUCTION. There are approximately 50,000 transit buses in service on U.S. streets today purchased through funds administered by the Federal Transit Administration (FTA). In an average year more than 3,500 buses are purchased by FTA grantees; while the majority are bought with funds under the FTA Urbanized Area Formula Program (1), approximately a third are acquired through the bus category of the Capital Program (2). As used in this chapter, the term "bus category" refers to that part of the Capital Program that provides Federal assistance to buy or lease, replace, and rehabilitate buses and related equipment and to construct bus-related facilities (3). In a typical year, approximately half of bus category funds are spent for construction or rehabilitation of facilities and half for acquisition of vehicles.
COMPETITION FOR FUNDS. The bus category is a discretionary program; that is, the Federal Transit Administrator has the authority to select among meritorious projects. In making project selections, FTA tries both to address urgent needs and to distribute the bus category funds among urban and rural localities and among the states in a balanced way. In some years, FTA announces funding priorities for the bus category, such as maintenance facilities and replacement buses. In any given year, a grant applicant should talk with the appropriate Regional Office to assess the availability of funds and the possibility of receiving funds to support the grant applicant's particular type of project.
1. Flexible Funds. Grant applicants are reminded to explore the availability of "flexible funds" delivered through the Federal-aid highway program. Flexible funding programs are authorized by the Intermodal Surface Transportation Efficiency Act of 1991 (4) (ISTEA) and may be used for either transit or highway projects. These programs include the Surface Transportation Program (STP), the STP Apportionment Adjustments, Minimum Allocation, Donor State Bonus, Interstate Maintenance, Bridge Replacement and Rehabilitation, National Highway System, Substitute Highway, and the Congestion Mitigation and Air Quality Improvement (CMAQ) programs. Although these Federal Highway Administration (FHWA) programs have intermodal flexibility, it is important to note that there are both programmatic and distributive limitations to the use of at least some portions of some funds. Nevertheless, Capital Program applicants are encouraged to investigate possibilities in these other programs. Over the 6-year life of the ISTEA authorization, nearly $80 billion in FTA and FHWA program funding has the flexibility to be used either for transit or highway purposes. More information about these programs can be found in the pamphlet, "Flexible Funding Opportunities for Transportation Investments," which can be obtained from FTA Regional Offices.
2. Combining Applications. Grant applicants are encouraged to look into advantages that may be gained by joining with other grant applicants and applying together for a single Capital Program grant. In a bus acquisition grant, for example, there may be economies of scale resulting from the preparation of one grant application, development of one specification, preparation of supporting materials for public hearings, and the hiring of fewer vehicle inspectors. Moreover, it may be possible to obtain a lower price.
PRIOR USE OF FORMULA FUNDS. Grant applicants receiving urbanized area formula funds (5) or nonurbanized area formula funds (6) are expected to apply these funds to routine capital needs and to use Capital Program funds for significant equipment or facilities that usually represent a one-time acquisition. Thus, grant applications for bus funds are reviewed by FTA for indications of how formula funds have been used. FTA will not allocate discretionary bus and bus-related funds until each designated recipient in an urbanized area has programmed all of its available urbanized area formula funds.
LENGTH OF TIME FUNDS ARE AVAILABLE. Funds appropriated in FY 1994 for bus and bus-related purchases that have not been obligated by FTA to a grantee by September 30. 1996, will no longer be available after that date, and will be made available for other discretionary projects. Funds appropriated in FY 1995 for bus and bus-related purchases that have not been obligated by FTA to a grantee by September 30, 1997, will also be made available for other discretionary projects after that date. Similarly, funds appropriated in FY 1996 for bus and bus-related purchases that have not been obligated by FTA to a grantee by September 30, 1998, will be made available for other discretionary projects after that date. This three-year availability is specified each year in the DOT Appropriations Act.
ELIGIBLE PROJECTS. Examples of projects eligible for bus category funding are the acquisition of buses for fleet and service expansion; bus maintenance and administrative facilities; transfer facilities, bus malls, transportation centers, intermodal terminals, and park-and-ride stations; acquisition of replacement vehicles; bus rebuild to extend useful life; passenger amenities such as passenger shelters and bus stop signs; and accessory and miscellaneous equipment such as mobile radio units, supervisory vehicles, fareboxes, computers, and shop and garage equipment. Costs incurred in arranging innovative financing for eligible projects are also reimbursable under the bus category. (See Chapter I, paragraph 4(c)(2), concerning innovative financing.)
ENVIRONMENTAL CONSIDERATIONS. Chapter VI, paragraph 7, describes FTA's environmental protection procedures and the related Capital Program application requirements. The discussion here provides supplementary information specific to bus category acquisitions.
1. "Categorical Exclusions." Many projects and activities assisted with bus category funds normally do not involve significant environmental impacts. The joint FHWA/FTA environmental regulations use the term "categorical exclusions" to describe those projects that are categorically excluded from the requirement to prepare an environmental document (environmental assessment or environmental impact statement). In accordance with the regulations (7), bus and bus-related projects that are predetermined to be categorical exclusions include:
  1. the acquisition of buses to replace old buses;
  2. the acquisition of buses for minor fleet expansions where use of these buses can be accommodated by existing facilities;
  3. bus rehabilitation;
  4. alterations to buses or facilities to make them accessible for the elderly and persons with disabilities;
  5. purchase and installation of bus operating or maintenance equipment to be located within an existing facility, with no significant impacts off the project site;
  6. installation of fencing, signs, pavement markings, small passenger shelters, and traffic signals where no substantial land acquisition or traffic disruption will occur; and
  7. construction of pedestrian and bicycle lanes, paths, and facilities.
2. Projects That May Have an Environmental Impact. A second group of bus category projects involve more construction and greater potential for off-site impacts. Examples are new construction or expansion of bus terminals and transfer facilities, bus storage and maintenance garages, office facilities, and transit centers with park-and-ride facilities. For these projects, the grant applicant must prepare environmental documentation with appropriate technical analysis to support a categorical exclusion, if appropriate, or a finding of no significant impact (FONSI), depending on the scope and magnitude of the probable environmental impacts.
  Experience has shown that many construction projects can be built and operated without causing significant impacts if they are carefully sited in areas with compatible, non-residential land use where the primary access roads are adequate to handle the additional bus traffic. FTA may approve the designation of these construction projects as categorical exclusions if the grant applicant provides documentation which clearly demonstrates that the conditions stated above are met and that no significant adverse effects will result. Grant applicants should refer to the list of categorical exclusions requiring FTA approval contained in the joint FHWA/FTA environmental regulations (8).
  For any project not meeting the conditions for a categorical exclusion, the grant applicant must prepare an environmental assessment (EA) which documents the impacts of the proposed project and considers alternatives to the proposed site or design. An EA is subject to public comment.
  If significant environmental impacts are identified for a bus category project, an environmental impact statement (EIS) will be required. For example, the new construction or extension of a separate roadway for buses or high-occupancy vehicles which is not located within an existing highway right-of-way normally requires an EIS.
  FTA is not permitted to provide Federal assistance to support a project requiring an EA or an EIS until FTA has completed the environmental review process and determined either that the project qualifies for a FONSI or that the final EIS supports a Federal grant for the project.
3. Clean Air Act Compliance. Federally assisted transportation projects must comply with the conformity requirements of the Clean Air Act Amendments of 1990. In order to receive Federal funding, transportation plans, programs, and projects must be found to conform to applicable state implementation plans (SIPs) for air quality. The proposed bus improvement must be included in a current long-range plan and transportation improvement program (TIP), which have been determined to conform to the SIP.
  In general, any project expected to have a quantifiable effect on regionwide, transportation-related emissions in an air quality nonattainment area must be included in the regional emissions analysis required for the area's transportation plan and TIP. In addition, some large bus projects (e.g., new intermodal terminals) must be analyzed for their potential localized impact on air quality. This is normally accomplished as part of the environmental analysis undertaken to comply with the National Environmental Policy Act (NEPA) (9). The FTA Regional Office can provide guidance on how to analyze the localized air quality impacts of various bus projects.
  Many bus category projects are exempted from the conformity requirements because they are presumed to have a negligible effect on regional and localized air quality. The grant applicant should refer to the Environmental Protection Agency (EPA) regulations governing the conformity process, (10) for a complete list of exempt projects. There may be cases in which a normally exempt transit project will require an air quality analysis and a conformity determination; hence, the grant applicant should review the proposed project with the FTA Regional Office to decide whether an exemption is appropriate. FTA's exemption determination is usually made in consultation with the agencies responsible for the area's air quality attainment plan.
LEAD TIME NEEDED FOR PURCHASING NEW BUSES. One cannot estimate with accuracy or confidence the lead time necessary between the moment new buses appear needed and the day they are placed on the street in transit service. Conditions vary. Manufacturing times may change with demand for buses and with the specification developed. Bus testing may be required. Mileposts to be taken into account that involve the FTA are as follows: The project must first be a product of the planning process and be included in the metropolitan transportation improvement program (TIP) and/or the statewide transportation improvement program (STIP). (A summary of the requirements that must be met in the metropolitan and statewide planning process is given in Appendix A.) The STIP must be approved both by the FTA and the FHWA before FTA can approve a grant application. A reasonable estimate for time required for FTA and FHWA to approve a STIP is 45 calendar days.
One state's experience with lead time in a bus procurement project follows: In October the state determined that it would apply to FTA for a grant for $13 million for vehicles for 15 localities. The state planned to submit a statewide application with the 15 localities as subrecipients. Taking into account the upcoming holiday season, the time the localities would need to collect their portions of the information for the application, and the time the state would require to compile the information, the state decided to submit its statewide application for vehicles on April 1, which the state did. Between April and June, the subrecipients developed their vehicle specifications and requested bids. FTA announced approval of the application on June 30. Following FTA approval, approximately 4 to 6 weeks were needed for contracts to be executed with manufacturers. Manufacturers delivered vehicles 8 to 12 months later, depending on the vehicle. Total time elapsed before buses were in service was 18 to 22 months.

REQUIREMENTS RELATED TO BUS PURCHASES. Grant application requirements that apply only to bus and bus facilities projects of the Capital Program appear in this chapter. Requirements common to all Capital Program applications appear in Chapter VI.

Requirements Related to Local Bus Fleets. FTA has established several policies that are meant to ensure that buses purchased or leased with Federal funds are maintained and remain in transit use for a minimum normal service life and to ensure that the buses acquired are necessary for regularly scheduled transit revenue service (i.e., to meet peak service requirements with a reasonable allowance for spares).
1. Service Life Policy. Service life of rolling stock begins on the date the vehicle is placed in revenue service and continues until it is removed from service. Minimum normal service lives for buses and vans are given in the paragraphs below.
  1. Large, heavy-duty transit buses (approximately 35'-40', and articulated buses): at least 12 years of service or an accumulation of at least 500,000 miles.
  2. Medium-size, heavy-duty transit buses (approximately 30'): 10 years or 350,000 miles.
  3. Medium-size, medium-duty transit buses (approximately 30'): 7 years or 200,000 miles.
  4. Medium-size, light-duty transit buses (approximately 25- 35'): 5 years or 150,000 miles.
  5. Other light-duty vehicles such as small buses and regular and specialized vans: 4 years or 100,000 miles.
  It is recommended that grant applicants specify the expected service life category in requests for bids when acquiring new vehicles.
  FTA calculates the value of vehicles prior to the end of their minimum normal service life on the basis of a formula using straight-line depreciation as described in paragraph (2)(b) below. Removal of an FTA- funded vehicle from revenue service before the end of its minimum normal service life, for any reason, leaves the grantee liable to FTA for the Federal share of the vehicle's remaining value. Consistent with this policy, the suggested vehicle service life standards stated above in years refer to time in normal service, not time spent stockpiled or otherwise unavailable for regular transit duty.
2. Replacement Policies.
  1. Replacement at End of Minimum Normal Service Life. Vehicles proposed to be replaced must have achieved at least the minimum normal service life. For purposes of bus replacement grant applications, the age of the bus to be replaced is its years of service or mileage at the time the proposed new bus is introduced into service.
  2. Early Disposition Policy. If a vehicle is replaced before it has achieved its minimum normal service life, the grantee has the option of returning to FTA an amount equal to the remaining Federal interest in the vehicle or applying the "like-kind exchange" policy (discussed below) and placing an amount equal to the remaining Federal interest in the vehicle into a newly purchased vehicle.
    To determine the Federal interest in a federally funded vehicle during its minimum normal service life, a straight-line depreciation formula is used: for example, for a bus with a 12-year minimum normal service life, the bus's value decreases each year by 1/12 of its original purchase price. Similarly, the Federal interest in the bus decreases each year by 1/12 of the amount of the Federal grant that was awarded for its purchase.
  3. Use of Like-Kind Exchange Policy. A vehicle may be traded-in or sold before the end of its minimum normal service life, if a grantee so chooses. Moreover, a grantee may elect to use the trade-in value or the sales proceeds from the vehicle to acquire a replacement vehicle of like kind. "Like-kind" means a bus for a bus with a similar service life and a rail vehicle for a rail vehicle. Under the like-kind exchange policy, proceeds from the vehicle sales are not returned to the FTA; instead, all proceeds must be invested in acquisition of the like-kind replacement vehicles. If sales proceeds are less than the amount of the Federal interest in the vehicle to be replaced, the grantee is responsible for providing the difference, along with the grantee's local share of the cost of the replacement vehicle.
    Grant applicants interested in buying a replacement vehicle before the end of the minimum normal service life of the vehicle to be replaced should refer to the FTA Notice, "Change in Policy on Sale and Replacement of Transit Vehicles," published in the Federal Register on August 28, 1992 (11). In Chapter IX, "Examples," a sample calculation for the like-kind replacement of a heavy-duty bus appears as "Like-kind".
3. Rebuilding Policies. Routine maintenance and repair costs are not eligible capital expenses, but rebuilding of buses--defined either as rehabilitation or remanufacture--is an eligible expense.
  Buses to be rebuilt should be at the end of the minimum normal service life, as previously described, and in need of major structural and/or mechanical rebuilding. The age of the bus to be rebuilt is its years of service at the time the rebuilding begins. Rebuilding that extends the useful life of the bus for five years or more must meet Americans with Disabilities Act requirements for new buses if this is structurally feasible. Bus rebuilding must be more cost-effective than the purchase of a replacement bus. The cost of rebuilding a bus cannot exceed the yearly amortized value (straight-line method) of a new bus multiplied by the number of years of useful life to be added to the rebuilt bus. The service life of the entire bus (not just a component) must be extended for the period indicated in paragraphs (a) or (b) below. Bus rebuilding work must be procured competitively from private-sector sources unless there are mitigating circumstances. In-house rebuilding must not interfere with normal maintenance activities.
  1. Rehabilitation. FTA recognizes rehabilitation to be the rebuilding of bus systems to original specifications of the manufacturer. Rehabilitation may include some new components but places less emphasis than remanufacturing does on structural restoration. Instead, rehabilitation focuses on mechanical systems and vehicle interiors. Rehabilitation should provide at least five years of additional service life for a standard, heavy-duty transit bus. For smaller buses, rehabilitation should provide an extension of the minimum normal service life by at least 40 percent.
  2. Remanufacturing. FTA recognizes remanufacturing to be the structural restoration of a standard, heavy-duty bus in addition to rehabilitation (above). Remanufacturing should provide at least eight years of additional service life.
4. Spare Ratio Policies. Spare ratios will be taken into account in the review of projects proposed to replace, rebuild, or add vehicles. The basis for determining a reasonable spare bus ratio takes local circumstances into account. The number of spare buses in the active fleet for grantees operating 50 or more revenue vehicles should not exceed 20 percent of the number of vehicles operated in maximum service.
  For purposes of the spare ratio calculation, "vehicles operated in maximum service" is defined as the total number of revenue vehicles operated to meet the annual maximum service requirement. This is the revenue vehicle count during the peak season of the year, on the week and day that maximum service is provided. It excludes atypical days and one-time special events. Scheduled standby vehicles are permitted to be included as "vehicles operated in maximum service."
  Spare ratio is defined as the number of spare vehicles divided by the vehicles required for annual maximum service. Spare ratio is usually expressed as a percentage, e.g., 100 vehicles required and 20 spare vehicles is a 20 percent spare ratio.
  For each grant application to acquire buses, a grant applicant must address the subjects of current spare ratio, the spare ratio anticipated at the time the new vehicles are introduced into service, disposition of vehicles to be replaced, and the applicant's conformance with the FTA spare ratio guideline. An applicant is required to notify FTA if the spare ratio computation on which the grant application is based is significantly altered prior to the grant award. "Fleet" and "Fleet Replacement" examples in Chapter IX provide assistance in addressing spare ratio for a grant applicant requesting funds to purchase buses.
5. Contingency Fleet. Buses may be placed in an inactive contingency fleet-- stockpiled -- in preparation for emergencies. No bus may be stockpiled before that vehicle has reached the end of its minimum normal service life. Buses held in a contingency fleet must be properly stored, maintained, and documented in a contingency plan, updated as necessary, to support the continuation of a contingency fleet. A contingency plan is not an application requirement, although FTA may request information about the contingency fleet during application review. Contingency plans are subject to review during triennial reviews required for the Urbanized Area Formula Program (12). (See chapter VI, paragraph 4a for information about triennial reviews.) Any rolling stock not supported by a contingency plan will be considered part of the active fleet. Since vehicles in the contingency fleet are not part of the active fleet, they do not count in the calculation of spare ratio.

Requirements Related to Purchase of New Buses.

Fleet and Service Expansion. Grant applicants seeking assistance to undertake fleet and service expansion should describe new markets they conclude service is needed. A fleet management plan must accompany the grant application, in which future needs, projected ridership, and spare ratio are discussed. The source of some of this information may be documentation developed during the metropolitan and statewide planning processes, in which case summary information and precise reference to the earlier material will be acceptable. Local criteria should be used in the identification of feasible opportunities for route extensions and new routes. These criteria are often based on demographic measures and are used to identify geographic locations that have transit potential. Care should be taken to explore all areas within the region. Areas that are currently served by transit should also be considered since they may have potential for different types of service. Candidate areas should be subjected to a more detailed analysis. Included in that analysis should be some established service design standards (for example, a minimum of 60-minute headways for all routes, or a 12-hour service day) which suggest the type and level of service that should be provided. Vehicle needs, operating cost, ridership, and revenues should be estimated for fleet and service expansion. A map indicating the fleet and service expansion locations should accompany the fleet and service expansion plan.
Eligibility of Components for Funding. Normally, vehicle components are considered routine purchases and should be acquired using funds under the Urbanized Area Formula Program. (13) Where it is cost-effective to the grant applicant, and the grant applicant can so demonstrate, a reasonable but limited number of spares of major components may be purchased along with the vehicles under the Capital Program. This policy applies when vehicles are being procured for new transit systems, or for extensions and expansions of existing systems and operations so that the vehicle fleet size is greater than it previously was. It may also be applied to the purchase of replacement vehicles if cost-effectiveness is shown.

Warranties. A standard warranty is an eligible capital cost as part of the bus acquisition cost. An extended warranty, however, is considered an operating cost and is not eligible for capital assistance. The following industry warranty provisions for a heavy-duty bus with a minimum normal service life of 12 years or 500,000 miles are eligible for Capital Program funding.

Complete bus: The complete bus is warranted and guaranteed to be free from defects due to design or workmanship for one year or 50,000 miles, whichever comes first, beginning on the in-service date or date of acceptance, whichever comes first, for each bus. During this warranty period the bus shall maintain its structural integrity. The warranty is based on normal operation of the bus under the operating conditions prevailing in the operator's locale.
Subsystems and Components: Specific subsystems and components are warranted and guaranteed to be free from defects and related defects for the times or mileages shown in the following table:

EXHIBIT III-1

Eligible Warranties

Item Years Mileage

(Whichever ocurs first)

Engine 2 200,000

Transmission 2 100,000

Drive axle 2 100,000

Brake system (excluding friction material) 2 50,000

Air conditioning system 2 n/a

Basic body structure 3 150,000

Structural integrity 7 350,000

Pre-Award and Post-Delivery Review of Buses. FTA requires that grantees purchasing revenue passenger rolling stock undertake reviews of the rolling stock before award of the bid, during manufacture, and following vehicle delivery. Grant applicants seeking to acquire rolling stock must certify that they will comply with pre-award and post-delivery review requirements. The certification language appears as Category IV in Appendix C.
The requirement to undertake the pre-award and post-delivery reviews arises from 49 U.S.C. § 5323(l) (14)and is specified in FTA regulations 49 C.F.R. Part 663. The reviews are intended to improve compliance with Buy America requirements, the grantee's bid specifications, and Federal Motor Vehicle Safety Standards. FTA has tried to carry out the intent of the law in a way that builds on current practices by many grantees and that improves the monitoring of compliance in the least burdensome manner. Reviews may be conducted by the grantee's staff or by a contractor for the grantee. The regulations require a resident inspector who is not an agent or an employee of the manufacturer to review specification compliance for the grantee at the manufacturing site, unless the procurement is for 10 or fewer buses or for an unlimited number of unmodified vans. The grantee must keep on file and make available to FTA upon request written reports resulting from the reviews.
When a state undertakes a consolidated state procurement on behalf of several subrecipients of FTA funds, the requirement for a resident inspector at the manufacturing site depends upon the number of buses in a subrecipient's order. That is, for example, although a state may order 30 vehicles, if no subrecipient expects to receive more than 10 of the vehicles, the state is not required to place an inspector on site. If more than 10 vehicles are ordered for a subrecipient, an on-site inspector is required, and may be provided by either the state or the subrecipient. In addition, if the on-site inspector is used on one subrecipient's order, then this meets the on-site inspection requirement for the state procurement even though there are other subrecipient orders of more than 10 vehicles.
In carrying out the reviews, it may be useful to obtain a copy of the manual, "Pre-award and Post-Delivery Reviews for Bus Vehicles," from the FTA Regional Offices (listed in Chapter X). Also, for buses that have been tested at the Altoona Bus Testing Center, it may be useful to obtain a copy of the test report. That address is provided in the discussion on bus testing below.
Bus Testing. Any new model bus, as well as models with significant changes, must be tested at the FTA-sponsored test facility in Altoona, Pennsylvania, before Federal funds may be expended to purchase them. This bus testing requirement (15) applies to modified vans used in transit service as well as buses. The requirement applies also to new bus and van models using alternative fuels such as methanol, ethanol, and compressed natural gas.
FTA does not require a vehicle manufacturer to test its model before bidding. However, grant applicants acquiring any new bus model or any bus model with a major change in configuration or components must certify that the model will have been tested and the grant applicant will have received a copy of the test report prepared on the bus model before the final acceptance of the first vehicle. Category V in Appendix C presents standard language for the certification.
FTA regulations, "Bus Testing," (16) define a new model bus as one not used in mass transportation service in the United States before October 1, 1988, or one used in such service but which, after September 30, 1988, is being produced with a major change in configuration or components. A major change in configuration is defined as a change which may have a significant impact on vehicle handling and stability or structural integrity. A significant impact is an effect that could result in an unsafe vehicle characteristic, such as a dangerous operating condition or failure of a structural element. A major change in components is defined as a change in one or more of the vehicle's major components such as the engine, transmission, suspension, axle, or steering.
Partial testing is allowed for vehicle models that previously have been fully tested but are being produced with significant changes. Only those tests that affect specific components or parts of the vehicle and that may produce significantly different data from previous tests must be performed.
Vehicles are tested for maintainability, reliability, safety, performance, structural integrity, fuel economy, and noise. FTA and the manufacturer together pay the bus-testing fees.
Bus testing is not required for unmodified mass-produced vans. Unmodified mass-produced vans are vehicles manufactured as complete, fully assembled vehicles as provided by the original equipment manufacturer (OEM). This category includes vans with raised roofs, or wheelchair lifts, or ramps that are installed by the OEM or by someone other than the OEM, provided that the installation of these components is completed in strict conformance with the OEM modification guidelines.
Reports on new model buses or buses with significant changes can be obtained from the Altoona Bus Testing Center, 6th Avenue and 45th Street, Altoona, Pennsylvania, 16602. The telephone number is (814) 949-7944.
Buy America. Discussed in Chapter VI because it is a requirement common to all FTA grantees, the Buy America provision nevertheless is called to the attention of grant applicants applying for a grant for buses or related acquisitions. See Chapter VI, paragraph 16, "Buy America."

Requirements Related to Buses in Service.
1. Commercial Driver's License. All drivers of vehicles designed to transport more than 15 people (including the driver) must have a commercial driver's license. Mechanics who drive the vehicles also must have a commercial driver's license. The requirement derives from FHWA regulations, "Commercial Driver's License Standards; Requirements and Penalties" putting into effect various commercial motor vehicle safety acts. (17)
2. Charter Operations. Charter service provided by federally assisted transit operators is limited by 49 U.S.C. § 5323(d). (18) These limitations are specified in FTA regulations, "Charter Service," 49 C.F.R. Part 604. Each grant applicant for FTA bus category assistance is required to enter into an agreement with FTA that the grant applicant will not engage in charter service unless permitted by FTA charter service regulations. That agreement is included in FTA's annual certifications and assurances. Category VI in Appendix C provides the language of the charter bus agreement.
  FTA's charter service regulations prohibit FTA recipients from providing any charter service using FTA-funded equipment or facilities if there is at least one private charter operator willing and able to provide the charter service that the FTA recipient proposes to provide. The charter service regulations apply to bus or van service provided by direct recipients, subrecipients, or third party contractors (19) that provide bus or van service financed with FTA funds. Before a transit operator may provide charter service using bus or van equipment or facilities financed by FTA, the operator must publish a notice at least annually and determine whether there are any private operators that do not receive FTA assistance willing and able to provide the service. A state either may conduct this process for itself and its subrecipients or may delegate these public notice responsibilities to its subrecipients, as long as adequate public notice is given. In addition, a state or a direct recipient of FTA funds that intends to make FTA funds available to another transit operator must obtain and retain in its records a certification of compliance with the charter service regulations from that operator.
  The charter service regulations provide eight exceptions to the general prohibition on providing charter service. One exception permits FTA recipients in nonurbanized areas to petition FTA for an exception if the charter service that would be provided by willing and able private charter operators would result in a hardship to the customer because the available operators impose minimum trip durations pursuant to a state regulation and the desired trip length is shorter than the mandatory trip length, or because the private charter operator is located too far from the origin of charter service. The charter service regulations specify the process for requesting an exception; if granted, an exception is effective for no more than 12 months and sometimes may be restricted to the particular trip.
  In certain circumstances transit service may appear to be charter service. For example, service provided under contract to a social service agency will generally be transit service, not charter service, if the FTA recipient controls the service, the service is open-door, and the FTA recipient is able to secure service on the vehicle for its passengers, in addition to passengers who are clients of the social service agency. Guidance on distinguishing prohibited charter service from permissible service may be found in the preamble to the original charter service regulation (20); the FTA notice setting forth charter service questions and answers (21); and the preamble to the amendment to the charter service regulations (22). The latest guidance supersedes earlier conflicting guidance.
3. School Bus Operations. School bus service that may be provided by a federally funded transit operator is limited by 49 U.S.C. § 5323(f). (23) These limitations, as well as four exemptions to these limitations, are specified in FTA regulations, "School Bus Operations." (24)
  Each grant applicant for FTA bus category assistance is required to enter into an agreement with FTA that the grant applicant will not engage in school bus operations exclusively for the transportation of students and school personnel, in competition with private school bus operators, in accordance with Federal regulations. That agreement is included in FTA's annual certifications and assurances. Category VII in Appendix C provides language for the school bus agreement.
  The school bus prohibition does not apply to a category of service FTA has designated "tripper service." Under FTA school bus regulations, tripper service means regularly scheduled transit service that is open to the public and that is designed or modified to accommodate the needs of school students and personnel, using various fare collection and subsidy systems. Buses used in tripper service must be clearly marked as open to the public and may stop only at regular service stops. All routes of the tripper buses must be within the operator's regular route service as shown in the operator's published route schedules.
Requirements Related to Accessory and Miscellaneous Equipment. This category includes such items as mobile radio units, bus stop signs, supervisory vehicles, fareboxes, computers, and shop and garage equipment. The rationale or need for requesting them should be made apparent in the grant application.

REQUIREMENTS RELATED TO BUS FACILITIES.
1. General Philosophy. FTA assists in building two categories of bus facilities:
  1. facilities that support transit operations, such as maintenance garages and administrative buildings, and
  2. facilities that provide passenger amenities and extend into the urban environment, such as bus terminals, stations, shelters, and park-and-ride lots.
  FTA supports projects that are transit-related; an applicant will need to justify costs that are only indirectly related to transit. FTA participates in those portions of a project most physically and functionally connected to transit. Generally speaking, FTA does not participate in costs outside the "transit footprint" of a development project. (See Appendix B for amplification concerning joint development projects.)
  With regard to intermodal facilities, FTA will participate on a pro rata basis, based on the public transit use or portion of the project. FTA assistance for parking is generally limited to parking for transit passengers or ride- sharing. FTA funds may not be used to support parking for shoppers or sports events unrelated to transit usage. To ensure that Federal funds appropriated for transit purposes are used as Congress intended, FTA may require a grantee to reserve FTA-assisted parking areas for transit users. Incidental use of parking areas, however, may be acceptable; an example of acceptable incidental use would be weekend use by shoppers of a parking area normally restricted for transit users during the week.
2. Examples. FTA's approach to the review of bus-related transit facility projects is reflected in the following examples:
  1. If a project is designed to improve the mixed land use and pedestrian access in the immediate vicinity of a transit bus station, the project may be eligible for Capital Program funding. The grant applicant should explain how the project helps to maintain or increase transit use. Transit use may result from maintaining the viability of the area immediately around the station for businesses and residences, or may result from increasing the mix of activities so that automobile use is less necessary and walk trips are feasible for more activities. Examples of such projects are day care facilities, retail businesses, and banking outlets.
  2. If a grant applicant plans to build a facility in conjunction with an intercity bus company, a taxi operation, or with other organizations within the public sector, the grant applicant is expected to apportion the costs for the project among those transit-related portions of the project and those that are not transit-related.
  3. If a grant applicant should desire to build an exclusive busway on an urban street, the grant application must clearly separate project costs related to transit from project costs unrelated to transit.
  4. Eligible costs do not include construction of commercial revenue- producing facilities, whether the facilities would be publicly or privately owned; nor do eligible costs include portions of public or private facilities not related to transit.
  5. While FTA permits a grantee to lease portions of an FTA-funded facility to others, FTA expects the grantee to limit that leasing to insignificant amounts of space or to space shared with the lessee. Acceptable examples of leasing include leasing part of a bus facility's lobby for use as a small concession stand, or as an Amtrak ticketing area. In addition, if a grantee is unready to use a portion of its facility, the grantee may lease that portion to another concern for a temporary period until the grantee is ready to use the leased portion.
3. Facility Size. FTA's general policy is to provide assistance for facilities that are adequate for the grant applicant's present needs and that will meet in a realistic way needs of the future. Thus, for a transit agency that at the present time operates 20 vehicles, a request for a bus maintenance garage that will accommodate 20 vehicles and have space for a 10 to 25 percent growth would be considered an acceptable grant request. For the same transit agency, a grant request for a garage for 40 vehicles would not be acceptable, unless the transit agency was absolutely committed to expanding its fleet to 40 vehicles. However, the purchase of enough land for the future expansion of the fleet and the garage may be justifiable.
4. Project Staging. When applying for a grant to build a facility, a grant applicant must be able to fully describe the project and estimate the cost of the facility. Often the best method for proceeding is first to request funds for facility design and engineering and, where allowable under FTA's environmental requirements, for acquisition of real estate, and later to apply for a grant amendment for construction funds when the cost of construction can be accurately estimated.
5. Planning Justifications. There must be a planning basis for every project or for every group of projects. Planning studies at varying levels of detail should be undertaken in support of projects to acquire, install, or construct major transit facilities. In the grant application, a grant applicant may choose to cite in reference and summarize pertinent parts of documents in which results of project studies were reported (for example, transportation plans, unified planning work programs, and management systems). FTA may request copies of studies or summaries of study results upon reviewing a grant application. The paragraphs that follow provide guidance.
  1. Passenger Amenities.
    1. Passenger Shelters--Passenger shelters proposed at load and transfer points, park-and-ride stations, employment concentrations, and housing concentrations for the elderly and persons with disabilities are eligible for FTA assistance. A program for bus shelters should be developed for the existing and proposed network based on the operator's shelter criteria, and, in the case of significant increases, should be included in the grant application. A map indicating the transit network and shelter location should accompany the shelter program.
    2. Transfer Facility or Transportation Center--The basis for a new transfer facility or transportation center should be documented in a planning study. Elements would include a determination of transit demand and other use, an evaluation of existing transfer facilities or sites to satisfy existing and future transit needs, evaluation and selection of sites if a new facility is warranted, preliminary concept design and cost estimate of the transit transfer facility, development of a staging and financing plan, and environmental documentation for the new facility.
    3. Park-and-ride Facilities--The basis for a new park-and-ride lot should be documented in a planning study. Generally, activities would include an evaluation of demand and service needs, evaluation of sites to satisfy existing and future transit needs, preliminary concept design of the park-and-ride lots, development of a staging and financing plan, and environmental documentation for the new facility.
  2. Maintenance and Administrative Facilities. The basis for new maintenance and administrative facilities or major expansions or renovations of existing facilities should be documented in a planning study. Activities would include an evaluation of the condition and adequacy of the existing facility, development of site evaluation criteria, identification and evaluation of alternative sites based upon site evaluation and design requirements, final site selection and preliminary concept building design, environmental documentation, and the development of a staging and financing plan.
EXPECTED TIMEFRAME FOR A BUS FACILITIES PROJECT. We offer the following timeline for an FTA-assisted bus facilities project, after discussions with several FTA Regional Offices. If one assumes, for the example, that the project is to construct a bus maintenance facility and that a preferred site has been selected by the grant applicant, then the following timeline that FTA has observed may be helpful:

EXHIBIT III-2

Timeframe for Bus Maintenance Facility

Milestone Time Required

Planning Study, Environmental Impact Study, Conceptual design completed 6 to 12 months, for projects costing up to $10 million
12 to 24 months, for project costing up to $40 million

Design/Engineering 3 to 6 months, for projects up to $10 million
12 to 24 months, for projects costing up to $40 million

Construction 12 to 18 months, for project up to $10 million
24 to 36 months, for projects up to $40 million

Some factors that might expedite or delay the project include availability of local share, environmental requirements, site selection (sometimes a major delay), design review process, various construction permits, construction problems, labor relations, and local politics.

Grant applicants applying to FTA for financial assistance for any one of these phases should also include in their calculations the FTA grant application review period.

Chapter Notes

49 U.S.C. § 5307, formerly Section 9 of the Federal Transit Act, as amended ("the Act")
49 U.S.C.§ 5309, formerly Section 3 of the Act
authorized under § 5309(m)(1)(C), formerly Section 3(k)(1)(C)
Public Law 102-240, December 18, 1995
formerly Section 9
formerly Section 18
23 C.F.R. § 771.117(c)
23 C.F.R. § 771.117(d)
42 U.S.C. §§ 4321 et seq.
40 C.F.R. Part 51
57 Fed. Reg., 39328-39329 (1992)
formerly Section 9
formerly Section 9
formerly Section 12(j)
49 U.S.C. § 5323(c), formerly Section 12(h)
49 C.F.R. Part 665
49 C.F.R. Parts 383.3, 383.5, and 383.23
formerly Section 3(f) of the Act.
A third party contract is one entered into by a grant recipient to obtain supplies, equipment, construction, or other services required to carry out the FTA-assisted project.
52 Fed. Reg. 11916 (1987)
52 Fed. Reg. 42248 (1987)
52 Fed. Reg. 53348 (1988)
formerly Section 3(g) of the Act
49 C.F.R. Part 605

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CHAPTER IV - FIXED GUIDEWAY MODERNIZATION
TABLE OF CONTENTS

INTRODUCTION AND BACKGROUND
1. Definition of Fixed Guideway
2. Apportionments Schedule
3. Length of Time Funds are Available
ELIGIBLE PROJECTS
ELIGIBLE RECIPIENTS
1. First and Second Tiers
2. Third Tier
3. Fourth Tier
SET-ASIDE FOR PROJECT MANAGEMENT OVERSIGHT
RELATIONSHIP TO URBANIZED AREA FORMULA FUNDING
REQUIREMENTS FOR FIXED GUIDEWAY MODERNIZATION PROJECTS
1. Inclusion in the TIP and STIP
2. Environmental Considerations
  1. Categorical Exclusions
  2. Other Possible Categorical Exclusions
3. Clean Air Act Compliance
4. Requirements Related to Fixed Guideway Rolling Stock
  1. Service Life Policy
  2. Replacement Policies
  3. Rebuilding
  4. Spare Ratio Policy
  5. Pre-Award and Post-Delivery Reviews of Rolling Stock
5. Procurement Activities Before a Grant Award
6. Buy America
7. Major Capital Investment Projects

CHAPTER IV
FIXED GUIDEWAY MODERNIZATION

INTRODUCTION AND BACKGROUND. Chapter IV discusses those aspects of the Capital Assistance program that specifically pertain to fixed guideway modernization and identifies the application requirements particular to fixed guideway modernization projects. The grant applicant is directed also to Chapter VI, in which are identified the requirements common to all Capital Program applications. Funding for fixed guideway modernization is allocated by Congress in 49 U.S.C. §5309(m)(1)(A) (1) and apportioned in 49 U.S.C. § 5337. (2)
1. Definition of Fixed Guideway. 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, trolleybus, aerial tramway, inclined plane, cable car, and automated guideway transit. The term also includes ferryboats, that portion of motor bus service operated on exclusive or controlled rights-of-way, and high-occupancy-vehicle (HOV) lanes.
2. Apportionments Schedule. FTA publishes the apportionments directed to fixed guideway modernization on an annual basis in the Federal Register, at the same time it publishes the apportionments of Urbanized Area Formula Program funds. (3) FTA apportions the urbanized area formula funds within 10 days following enactment of the annual Department of Transportation Appropriations Act or on October 1, whichever is later.(4)
3. Length of Time Funds are Available. Fixed guideway modernization funds are available to the grantee in the fiscal year they are apportioned plus three additional years. Any of the apportioned funds remaining unobligated to a grantee after that period will revert to FTA and be added to the amount available for apportionment for fixed guideway modernization projects in the next fiscal year.(5)
ELIGIBLE PROJECTS. Capital projects to modernize or improve fixed guideway systems are eligible for funding. Projects include, but are not limited to, the purchase and rehabilitation of rolling stock (including railcars, locomotives, work trains, and ferryboats), track, line equipment, and structures, signals and communications, power equipment and substations, passenger stations and terminals, security equipment and systems, maintenance facilities and equipment, operational support equipment (including computer hardware and software), and system extensions.
ELIGIBLE RECIPIENTS. FTA allocates fixed guideway modernization funds in four tiers, as established by Congress in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA).(6) The statutory sections listing the allocations to be made by FTA appears at 49 U.S.C. § 5337(a)-(d). (7) To each of the first three tiers, Congress has assigned an amount of authorized funding and a set of eligible recipients. Congress has placed in the fourth tier any dollars that may be appropriated in excess of the total authorization for the first three tiers.
1. First and Second Tiers. Percentages have been established by Congress to allocate the first $497.7 million (first and second tier) to 11 specified areas that have fixed guideway systems. These areas are Baltimore, Boston, Chicago/Northwestern Indiana, Cleveland, New York, Northeastern New Jersey, Philadelphia/Southern New Jersey, San Francisco, Southwestern Connecticut, Pittsburgh, and New Orleans.
2. Third Tier. The next $70 million has been allocated to a third tier, and the financial assistance that recipients in the third tier receive is based on two formula factors used in the urbanized area formula program. These are
  1. number of fixed guideway revenue vehicle miles attributable to the urbanized area in relation to the total number of all such miles attributable to all urbanized areas; and
  2. number of fixed guideway route miles attributable to the urbanized area in relation to the total number of all such fixed guideway route miles attributable to all urbanized areas.
  The third-tier allocation has been divided: FTA directs 50 percent ($35 million) to the 11 urbanized areas, and 50 percent ($35 million) to urbanized areas with fixed guideway systems in service at least 7 years.
  A threshold level of more than one mile of guideway--as reported to the FTA National Transit Database (8)--is required for an area to be included in the apportionment of fixed guideway modernization funds. The latest report year of validated data in the database is used in calculating the formula factors. The funds for recipients in the third tier are recalculated every year to account for new fixed guideway systems that meet the 7-year threshold.
3. Fourth Tier. Any remaining funds constitute the fourth tier. The funds in this tier are allocated to all urbanized areas in the first three tiers, with the formula factors serving as the basis for allocation.
SET-ASIDE FOR PROJECT MANAGEMENT OVERSIGHT. (9) FTA is authorized to set aside 3/4 of 1 percent of the Capital Program funds to contract for oversight of major capital projects and to conduct safety, procurement, management, and financial compliance reviews and audits. FTA reserves the funds for these purposes before apportionment of the fixed guideway modernization funds.
RELATIONSHIP TO URBANIZED AREA FORMULA FUNDING. Fixed guideway modernization projects may also employ Urbanized Area Formula Program funding authorized by 49 U.S.C. § 5307. (10) When a project uses both Capital Program funding and Urbanized Area Formula Program funding, it may be efficient to submit the grant applications jointly. The grant applicant should discuss the best approach with the FTA Regional Office.
REQUIREMENTS OF FIXED GUIDEWAY MODERNIZATION PROJECTS.
1. Inclusion in the TIP and STIP. Just as capital projects in the Urbanized Area Formula Program (11) and bus and new start projects in the Capital Program authorized by 49 U.S.C. § 5309 (12) must be included in an urbanized area's transportation improvement program (TIP) and in the state transportation improvement program (STIP), so must fixed guideway modernization projects be in a TIP approved by the MPO and in a STIP approved by FTA and FHWA. A discussion of the metropolitan and statewide planning process required by 49 U.S.C. §§ 5303 - 5306 (13) appears in Appendix A.
2. Environmental Considerations. Chapter VI, paragraph 7 describes FTA's environmental protection procedures and the related Capital Program application requirements. The discussion here provides supplementary information specific to fixed guideway modernization.
  1. Categorical Exclusions. Most projects and activities in support of fixed guideway modernization normally do not involve significant environmental impacts. The joint FHWA/FTA environmental regulations use the term "categorical exclusion" (CE) to describe a project that is categorically excluded from the requirement to prepare an environmental assessment (EA) or an environmental impact statement (EIS). The following fixed guideway modernization projects are normally determined to be CEs: (14)
    1. the purchase of vehicles to replace old vehicles;
    2. the purchase of vehicles for fleet expansions where maintenance, storage, and use of the new vehicles will be accommodated in existing facilities;
    3. rehabilitation of vehicles;
    4. alterations to vehicles or facilities to make them accessible for the elderly and persons with disabilities;
    5. installation or replacement of bicycle securement devices, racks, bicycle lockers, and other improvements in bicycle access to transit, on vehicles or in facilities;
    6. track and railbed maintenance and improvements within the existing right-of-way, including traction power, communications, and signal systems;
    7. purchase and installation of operating or maintenance equipment to be located within an existing facility with no significant impacts off-site;
    8. installation of fencing, signs, pavement markings, small passenger shelters, and traffic signals where no substantial land acquisition or traffic disruption will occur; and
    9. at stations, terminals, or other locations.
  2. Other Possible Categorical Exclusions. Even though the following fixed guideway modernization projects involve more construction and greater potential for off-site impacts, these projects may still qualify for CEs:
    1. rehabilitation or reconstruction of existing rail and bus buildings and ancillary facilities;
    2. bridge rehabilitation, reconstruction, or replacement;
    3. construction of park-and-ride facilities associated with existing fixed guideways;
    4. construction of grade separation to replace existing at-grade street crossings;
    5. modernization of a busway, transitway, or transit mall by resurfacing, restoration, rehabilitation or reconstruction;
    6. traffic safety or operational improvement to a busway, transitway, or transit mall.
    Experience has shown that many of these construction projects can be built and operated without causing significant environmental impacts if they are carefully designed and located. FTA may approve the designation of these projects as CEs if the grant applicant provides documentation clearly demonstrating that no significant adverse environmental effects will result. (15) In some cases, FTA will be able to approve a CE based only on the grant applicant's detailed project description showing that no significant environmental impacts will occur. In other cases, FTA may defer approval of a CE until the grant applicant conducts additional environmental studies (such as an analysis of the impact of bridge reconstruction on surrounding wetlands and the river itself). When the grant applicant proposes to rehabilitate an historic property, FTA may again defer approval of a CE until the applicant has negotiated an agreement with the requisite historic preservation agencies.
    When the number and nature of environmental impacts preclude FTA from approving a CE for the project, the grant applicant then must prepare and seek public comment on an EA, which evaluates the impacts and discusses alternatives to the applicant's proposed site or design. After public comment has been completed, FTA will then review the project and related documents to determine if a finding of no significant impact (FONSI) is appropriate or if an EIS is required.
    FTA will not issue a FONSI on a modernization project which has been determined by FTA, in consultation with other agencies and the public, to have significant environmental impacts. For example, the environmental impacts of a fixed guideway modernization project involving substantial reconstruction of the guideway and relocation of stations may be similar to a new start project, particularly if the project establishes or restores high capacity transit service in one or more communities unaccustomed to such service. As with a new start project, FTA will require that the grant applicant prepare an EIS and follow the EIS process whenever significant environmental impacts are identified for a fixed guideway modernization project.
    It should be noted that FTA will not award Federal assistance to support a project until FTA takes one of the following actions: (1) determines that the project qualifies for a CE; (2) issues a FONSI; or (3) approves a final EIS and record of decision.
3. Clean Air Act Compliance. An applicant seeking funding must comply with the Clean Air Act, as amended, by satisfying the requirements of the air quality conformity regulations at 40 C.F.R. Part 51. Fixed guideway modernization projects are generally exempt from these conformity requirements, (16) unless FTA determines otherwise. This exemption is justified because fixed guideway modernization projects generally have neutral effects on the air quality of the project area and are intended to maintain the current level of transit service. Examples of exempt project activities include: upgrading of track, trackbed, and signal systems within existing rail rights-of-way; new construction or renovation of rail storage and maintenance facilities and ancillary structures; rail car rehabilitation; and purchase of new vehicles as replacements or for a minor expansion of the fleet.
  While it is unlikely that a fixed guideway modernization project would involve air quality effects that must be quantified, there can be exceptions. For example, the conversion of an existing commuter rail system from diesel to electric power offers an MPO the opportunity to demonstrate reductions in emissions that should be recorded in the area's transportation planning documents and air quality attainment strategy. Hence, it is advisable for the grant applicant to consult early with the MPO and FTA Regional Office to discuss the scope of the project and whether it will be exempt from the analytical requirements of the air quality conformity process.
4. Requirements Related to Fixed Guideway Rolling Stock.
  1. Service Life Policy. FTA has established several policies over the years meant to ensure that the grantee obtains adequate use of vehicles acquired with FTA assistance. In the case of rail vehicles acquired with FTA assistance, FTA has established a minimum normal service life of 25 years. Service life of rolling stock begins on the date the vehicle is placed in revenue service and continues until it is removed from service. The service life in years refers to total time in normal transit service, not time spent stockpiled or otherwise unavailable for regular transit use. A grantee that regularly measures lifespan by hours of operations, or by any other measure, may develop an appropriate methodology for converting its system to years of service. The reasonableness of such methodologies will be subject to examination, particularly if the grantee proposes to retire a vehicle before FTA's service life requirement has expired.
    Regardless of the reasons, when a grantee removes a vehicle financed by FTA from service before expiration of its minimum normal service life, the grantee is legally obligated to FTA for an amount equal to the Federal share of the vehicle's remaining value, as explained further below. The value of a vehicle prior to the end of its minimum normal service life is calculated on the basis of straight-line depreciation.
  2. Replacement Policies
    1. Replacement at End of Minimum Normal Service Life. Before a grantee may replace an old rail vehicle with a new rail vehicle, the old vehicle must have reached or exceeded its 25-year minimum normal service life. For purposes of a rail vehicle replacement project, the age of the vehicle to be replaced is its age at the time the new vehicle is introduced into service. FTA's 25-year service life requirement is a minimum standard.
    2. Early Disposition Policy. If a vehicle is replaced before the end of its minimum normal service life, the grant applicant has the option of returning to FTA an amount equal to the remaining Federal interest in the vehicle or using FTA's "like kind exchange" policy (discussed below) and putting an amount equal to the remaining Federal interest in the vehicle into a newly purchased vehicle.
      To determine the Federal interest remaining in a federally financed rail vehicle, one must first calculate the total value remaining in the vehicle using the straight-line depreciation method. Based on straight-line depreciation, the value of a rail vehicle with a 25-year minimum normal service life decreases by 1/25 of the purchase price for each year the vehicle has been in transit service. Thus, a rail vehicle in service for 20 years has a total remaining value of 5/25 or 1/5 of the original purchase price. Having calculated the total remaining value, one then multiplies that figure by the percentage of Federal assistance that was provided to purchase the vehicle. The product of this multiplication represents the Federal interest remaining in the vehicle.
    3. Use of Like-Kind Exchange Policy. A vehicle may be traded-in or sold before the end of its minimum normal service life, if a grantee so chooses. Moreover, a grantee may elect to use the trade-in value or the sales proceeds from the vehicle to acquire a replacement vehicle of like kind. "Like-kind" means a bus for a bus with a similar service life and a rail vehicle for a rail vehicle. Under the like-kind exchange policy, proceeds from the vehicle sale are not returned to the FTA; instead, all proceeds must be invested in the acquisition of like-kind replacement vehicles. If sales proceeds are less than the amount of the Federal interest in the vehicle to be replaced, the grantee is responsible for providing the difference, along with the grantee's local share of the cost of the replacement vehicle
      Grant applicants interested in buying a replacement vehicle before the end of the minimum normal service life of the vehicle to be replaced should refer to the FTA Federal Register Notice, "Change in Policy on Sale and Replacement of Transit Vehicles," 57 Fed. Reg., 39328 (1992). A sample calculation for the like-kind replacement of a vehicle appears as "Like-Kind" in Chapter IX.
  3. Rebuilding. Routine maintenance and repair costs are not eligible capital expenses; but rebuilding costs, defined as rehabilitation and mid-life overhaul, are eligible for capital assistance.
    1. Rehabilitation. To be eligible for FTA Capital Program assistance, rehabilitation must be more cost-effective than the purchase of new rolling stock. Thus, the cost of rehabilitation may not exceed the yearly amortized value (straight-line method) of a new vehicle multiplied by the number of years of service life to be added to the vehicle through rehabilitation. The service life of the vehicle must be extended by at least 40 percent of its original service life. To be rehabilitated with Federal assistance, a vehicle must have reached the end of its service life.
    2. Mid-life Overhaul. FTA uses the term "mid-life overhaul" to mean the overhaul of rail rolling stock consisting of one-time rebuilding or replacement of major subsystems on revenue-producing rail cars and locomotives. To be eligible for Capital Program assistance, the rolling stock to be overhauled must have an accumulated service life of at least 12 years.
  4. Spare Ratio Policy. Spare ratio can be determined using the calculations involving buses discussed in Chapter III at paragraph 7a(4). Because rail transit operations tend to be highly individualized, FTA has not established a specific number to serve as an acceptable spare ratio for rail. Nevertheless, rail operators should be aware that the grant applicant's rail vehicle spare ratio and the rationale underlying that spare ratio will be examined as part of the grant application review whenever FTA assistance is requested to purchase rail vehicles. As in the calculation of spare ratio for bus fleets, scheduled standby fixed guideway vehicles are permitted to be included as "vehicles operated in maximum service."
  5. Pre-award and Post-delivery Reviews of Rolling Stock. FTA requires that grantees purchasing revenue passenger rolling stock undertake reviews (17) of the rolling stock before award of the bid, during manufacture, and after delivery of the vehicle as specified in FTA's implementing regulations (18), the intention of which is to improve compliance with Buy America requirements, the grantee's bid specifications, and Federal Motor Vehicle Safety Standards.(Federal Motor Vehicle Safety Standards do not apply to rail rolling stock.)
    Reviews may be conducted either by the grantee's staff or by a contractor for the grantee. The regulations require the grantee to engage a resident inspector who is neither an agent nor an employee of the manufacturer to review specification compliance for the grantee at the manufacturing (or final assembly) site. Grantees may wish to obtain from FTA Regional Offices a copy of "Pre-award and Post-delivery Review for Rail Vehicles," a manual prepared by FTA to assist grantees in complying with this requirement.
    Certifications and supporting documentation from the reviews must be retained by the grantee in a manner readily available for FTA inspection. A grant applicant must certify that it will comply with FTA's pre-award and post-delivery review requirements when purchasing revenue service rolling stock. Category IV in Appendix C presents a standard certification.
5. Procurement Activities Before a Grant is Awarded. Grant applicants for fixed-guideway-modernization funds that want to proceed with a transit project in advance of the availability of Federal funds may use pre-grant-award authority to incur costs using non-Federal resources with the understanding that the costs incurred may be reimbursable if and when an FTA grant is awarded for the project. Such actions prior to FTA approval of a grant may include a grant applicant's contracting with a third party for equipment or services. Grant applicants are advised to follow FTA Circular 4220.1C, "Third Party Contracting Requirements," when contracting in advance of FTA approval of the grant application, in order to reduce reimbursement problems and issues if and when the Federal funds become available. Project activities in advance of Federal funds, such as letters of no prejudice, is the topic of Chapter VI, paragraph 22. The reader's attention is directed also to paragraph f below concerning Buy America and to Chapter VI, paragraph 12 concerning "Pre-award and Post-delivery Reviews."
6. Buy America. Discussed in Chapter VI because it is a requirement that applies to all Capital Program grantees, the Buy America requirement nevertheless is called to the attention of a grant applicant for a fixed guideway modernization grant. For information on Buy America requirements, the reader should refer to Chapter VI, paragraph 16.
7. Major Capital Investment Projects. On occasion, a fixed guideway modernization project will be identified as a major capital investment project. FTA defines a major capital investment project as:
  1. any new start,
  2. rail modernization generally valued at over $100 million, or
  3. any other project identified as a major capital investment project by the FTA Administrator.
  In such cases an applicant must carry out a project management plan and must apply value engineering techniques to the project. The elements of a project management plan appear in 49 U.S.C. § 5327(a). (19) Regulations laying out the requirements of a project management plan can be found at 49 C.F.R. Part 633. For more information about major capital investments, the grant applicant should refer to Chapter V, "New Starts," and, in particular, paragraphs 10 and 11, concerning project management plans and value engineering.

Chapter Notes

formerly Section 3(k) of the Federal Transit Act, as amended ("the Act")
formerly Section 3(h) of the Act
formerly Section 9 funds; see 49 U.S.C. 5336(e), formerly Section 9(q)
49 U.S.C. § 5336(e), formerly Section 9(q)
consistent with the formula established by 49 U.S.C. § 5337
Public Law 102-240, Dec. 18, 1991
formerly Sections 3(h)(1)-(4)
reporting system established under the former Section 15 program
formerly under Section 23
formerly Section 9
formerly Section 9
formerly Section 3
formerly Section 8
in accordance with the regulations at 23 C.F.R. § 771.117(c)
23 C.F.R. 771.117(d)
40 C.F.R. § 51.460
in accordance with 49 U.S.C. § 5323(1)
49 C.F.R. Part 663
formerly Section 23 (e)

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CHAPTER V - NEW STARTS
TABLE OF CONTENTS

INTRODUCTION AND BACKGROUND
CHAPTER CONTENTS
PLANNING AND PROJECT DEVELOPMENT PROCESS
1. Objectives
2. Phases
3. Description of Each Phase
  1. Planning
  2. Preliminary Engineering
  3. Final Design
  4. Construction
ENVIRONMENTAL PROTECTION
CLEAN AIR ACT COMPLIANCE
AVAILABLE FUNDING AND THE NEED FOR PRIORITIES
FTA RATING SYSTEM
LETTER OF INTENT
TIMING OF THE PROJECT DEVELOPMENT PROCESS
PROJECT MANAGEMENT PLAN
VALUE ENGINEERING REQUIREMENTS
FULL FUNDING GRANT AGREEMENT
PROCUREMENT ACTIVITIES BEFORE A GRANT IS AWARDED
BUY AMERICA
LENGTH OF TIME FUNDS ARE AVAILABLE
TECHNICAL ASSISTANCE

CHAPTER V
NEW STARTS

INTRODUCTION AND BACKGROUND. FTA uses the term "new start" to mean a project that involves building a new fixed guideway system or extending an existing fixed guideway. The new start can be a light rail line, subway line, commuter rail, automated fixed guideway system (such as a "people mover"), or a busway/high occupancy vehicle (HOV) facility, or an extension of any of these. Also, new start projects can involve the development of transit corridors and markets to support the eventual construction of fixed guideway systems, including the purchase of land to protect rights-of-way or construction of park-and-ride lots. Funding for new starts is authorized at 49 U.S.C. § 5309(m)(1)(B). (1) New start projects cost many millions of dollars, and their development involves complex analyses of possible changes in local travel patterns, economic development conditions, and environmental quality that could occur if the new start were to be built. New start development is often conducted in a dynamic political and institutional setting; for example, city officials who voted in the project's early phases to support project development may be out of office when the vote to begin construction is scheduled, and the new incumbents may vote differently.
Projects become candidates for funding by successfully completing the appropriate steps in the major capital investment planning and project development process. Competing new start projects are evaluated on the basis of how well they meet project justification and financial criteria listed in 49 U.S.C. § 5309 (e)(2)-(7). (2) The grant applicant is encouraged to make contact with the appropriate Regional Office to discuss the process.
CHAPTER CONTENTS. Chapter V summarizes the steps in developing a new start project and discusses the air quality and environmental considerations particular to new starts. While funds from the Metropolitan Planning Program (3), State Planning and Research Program (4) and the Urbanized Area Formula Program (5) are usually applied in the project's earlier stages, Capital Program funding is generally used in the later stages. Applications for grants for new start projects are very similar to other Capital Program applications. Hence, a grant applicant will need to refer to Chapter VI, "Requirements Common to All Capital Program Grant Applications." The similarity with other projects has several notable exceptions: First, new start projects are more likely to be subject to major investment planning requirements. Second, FTA has a formal rating process for evaluating competing new start projects. In addition, new start projects require submission of a project management plan, the use of value engineering, and execution by FTA of a full funding grant agreement in later phases of the project. All of these subjects are discussed in the paragraphs to follow.
Because a new start project may entail construction of bus facilities and acquisition of buses, acquisition of rail or other fixed guideway vehicles, or construction of a new fixed guideway system or its extension, the reader is reminded to consult the other chapters in this circular that pertain to the components of the grant application at hand. When, for example, buses are to be purchased as part of a new start project, grant application requirements associated with bus acquisitions apply, and the grant applicant should refer to Chapter III, "Buses and Related Acquisitions."
PLANNING AND PROJECT DEVELOPMENT PROCESS. In order to ensure that new start projects meet the requirements of 49 U.S.C. § 5309, (6) FTA requires project applicants to undertake a defined planning and project development process as described in the joint FTA and Federal Highway Administration planning regulations. (See Appendix A of this circular.)
1. Objectives. Local transportation planning agencies and implementing agencies such as state transportation departments, transit operators, and other units of local government develop transportation plans and projects. The planning process is designed to provide the following:
  1. a logical structure to help local decisionmakers develop plans and advance projects from initial conception through design and construction;
  2. sound technical information on costs, benefits, and impacts so that local decisionmakers can make informed choices from among myriad possible alternatives; and
  3. a mechanism for FTA to evaluate major transit capital projects competing for Federal discretionary funds.
2. Phases. The major capital investment process involves four phases of activity leading from project conception to revenue operation:
  1. Planning
    Regional Level Studies
    Corridor/Subarea Level Studies
  2. Preliminary Engineering
  3. Final Design
  4. Construction
  As proposals advance through the phases, the participating state and local planning agencies, working in collaboration, may drop alternatives from consideration as information on costs, benefits, and impacts is developed. This narrows the range of available alternatives until eventually one alternative or strategy (the locally preferred alternative) is selected for implementation.
  In each phase, local agencies undertake the technical studies to develop the proposals. FTA monitors the work, providing technical assistance and oversight. Local officials must obtain FTA approval to advance a project proposal into preliminary engineering and beyond. There have been occasions when no FTA funds were used for early stages of a project. However, in those cases FTA worked closely with the local agency to develop the appropriate studies and resulting documents, because, by statute, FTA cannot approve funds for the later stages if the earlier stages have not met the requirements of 49 U.S.C. § 5309 for new start projects.
3. Description of Each Phase. A brief description follows of each phase in the project's development.
  1. Planning. Planning refers to the continuing, cooperative, and comprehensive urban transportation planning process that exists in each urbanized area of the country. The process is carried out by the designated metropolitan planning organization (MPO) in cooperation with the state government and operators of publicly owned transit services.(7)
    During planning, local officials conduct assessments of transportation conditions throughout the region. Regional goals and objectives are developed or updated, data on regional traffic patterns are collected, and future land use and travel are projected. A wide range of multimodal alternatives is examined leading to the adoption of policies, plans, and transportation improvement programs. Transportation plans and programs must be financially constrained and, in nonattainment areas, must conform to state implementation plans for air quality. Financially constrained means to FTA that in a local transportation plan sources of funds are committed and available, and the Federal share to be requested for projects does not exceed the amounts the locality can reasonably expect on the basis of history and current FTA statutory authorizations. Planning can be financed from a variety of sources including Urbanized Area Formula Program (8) funds, Metropolitan Planning Program (9) funds, and State Planning and Research Program (10) funds administered by FTA. Planning is also supported with FHWA planning funds. Flexible funds (e.g., Surface Transportation Program, National Highway System, Congestion Mitigation and Air Quality) may be used for certain planning activities (see Chapter III, paragraph 2a).
    The metropolitan planning regulations cited above contain special requirements for major metropolitan transportation investments--which include most new start transit projects as well as major highway improvements. For these major projects, decisions on design concept and scope (e.g., technology, termini, width, degree of grade separation) are based on corridor or subarea-level studies which are conducted as part of the long-range planning process. Alternative investments or strategies, including multimodal options, must be evaluated for their effectiveness and cost-effectiveness. The analysis develops information on the direct and indirect costs of the alternatives and on such factors as mobility improvements, socioeconomic and environmental effects, safety, operating efficiency, land use and economic development, financing, and energy consumption. Major investment studies serve as the "alternatives analysis" that is required for certain new start projects.(11)
    Before a major investment study is initiated, it must be included in the MPO's unified planning work program. The study must also be included in the transportation improvement program (TIP) if it is to be financed with capital funds administered by FTA. A cooperative process involving the MPO, the state department of transportation, transit operators, FTA, FHWA, and other interested agencies and the public is used to establish the extent of the analysis, the alternatives to be considered, and agency roles and responsibilities.
    At the end of the major investment study, the MPO reviews and modifies the regional transportation plan as appropriate to identify the selected design concept and scope. Requests to initiate preliminary engineering may be submitted for projects that are included in the adopted plan.
    FTA can approve the initiation of preliminary engineering for a new start when the project meets certain specified criteria. (12) FTA must determine that the new start is justified based on a comprehensive review that considers mobility improvements, cost-effectiveness, operating deficiencies, environmental benefits, and other factors. FTA must also determine that the new start is supported by an acceptable degree of local financial commitment. Certain kinds of projects are exempt from the new start criteria. (13) Exemptions apply to projects with the following characteristics:
    1. the Capital Program (14) share is less than $25 million,
    2. the Capital Program cost of the project is less than 1/3 of the total project cost, or
    3. the project is in a severe or extreme nonattainment area for air quality and is part of an approved state implementation plan.
  2. Preliminary Engineering. The local agency refines the design of the locally preferred alternative, and possibly other alternatives that have been found to be cost effective. More precise estimates of costs and impacts are developed. The environmental documents required under the National Environmental Policy Act are completed. A detailed, comprehensive project management plan is developed to ensure construction quality and financial control. The project financing plan is implemented as the non-Federal funding partners commit themselves during this phase.
    Capital Program (15) and Urbanized Area Formula Program (16) funds are often used for preliminary engineering. Flexible funds may also be used.
  3. Final Design. Local agencies acquire right-of-way and produce the plans, specifications, and estimates necessary to construct the project.
    If FTA agrees to provide financial assistance for the project, FTA will enter into a full funding grant agreement with the grantee, which binds the local agency to complete construction of the project within a fixed time schedule, sets a fixed ceiling on the total Federal contribution, and establishes a schedule for Federal contributions.
    Urbanized Area Formula Program (17) funds and Capital Program (18) funds are often used for final design.
  4. Construction. Construction includes physical construction, procurement of vehicles, and pre-service testing of equipment (signal equipment, rolling stock, for example).
    New start funding is used to finance these costs, and additional financial support may be available from the Urbanized Area Formula Program or flexible funds derived from FHWA.
ENVIRONMENTAL PROTECTION. Chapter VI, paragraph 7, describes FTA's environmental protection procedures in general and the related Capital Program (19) grant application requirements. Regulations governing the preparation and review of environmental documents can be found at 23 C.F.R. Part 771. The following discussion provides supplementary information about environmental requirements specific to new start projects.
Many new start projects involve significant environmental impacts. Before FTA may award capital assistance for a new start project, the social, economic, and environmental impacts of the project, and of reasonable alternatives to the proposed project, must be analyzed and documented in an environmental impact statement (EIS) or an environmental assessment (EA), as required by the regulations. New start projects that normally require EIS's are:
1. new construction or extension of fixed rail transit facilities such as rapid rail, light rail, commuter rail, and automated guideway transit facilities; and
2. new construction or extension of a separate roadway for buses or high-occupancy vehicles (HOV's) not located within an existing highway facility.
An EIS is prepared in two phases, draft and final. The draft EIS can be prepared during the corridor/subarea study and serve as the basis for a decision on general mode (i.e., type of fixed guideway) and alignment. Otherwise, the draft EIS is prepared during preliminary engineering. The draft EIS must identify the impacts of the alternatives, reflect coordination with appropriate Federal, state, and local resource agencies on the impacts, and discuss avoidance, minimization, and mitigation of any adverse impacts. The draft EIS must be provided to agencies with jurisdiction or an interest in the project and to the general public for review and comment. The final EIS, which identifies the preferred alternative, must be completed during preliminary engineering. As appropriate, the final EIS must address the comments received in one of the following ways: changing the project location or design; committing to specific mitigation measures or environmental enhancements; or including a written justification in the final EIS of the applicant's reasons for not changing the project in response to a specific comment. Joint FHWA/FTA environmental regulations (20) prohibit FTA from taking a final action, such as awarding a grant or issuing a Letter of No Prejudice (see Chapter VI, paragraph 22) for final design, land acquisition or construction, or from making any other commitment to a particular alternative, until FTA completes and signs an environmental record of decision (ROD) pertaining to the environmental impact of the project. FTA may not issue an ROD until 30 days after the final EIS is filed with the U.S. Environmental Protection Agency (EPA) and EPA publishes a notice in the Federal Register.
Some new start projects require little new right-of-way and therefore have less potential for off-site impacts. Examples include commuter rail on an existing freight rail line where train frequencies will be increased only marginally, or conversion of an existing highway median to HOV/bus lanes. For these kinds of projects, the grant applicant must prepare an EA which, like an EIS, analyzes the impacts of the proposed project, evaluates alternatives (location or design), and reflects coordination with other appropriate agencies. An EA is subject to public comment and FTA review to determine if a finding of no significant impact (FONSI) is appropriate. If no significant environmental impacts are identified during the preparation of an EA, FTA will complete the environmental review process by issuing a FONSI. However, if significant environmental impacts are identified during the preparation of an EA, the more rigorous EIS process described above must be followed.
The grant applicant should note particularly that FTA will not award Federal assistance to support a project until FTA takes one of the following actions: determines that the project qualifies for a CE; issues a FONSI; or approves the final EIS and issues an ROD.
CLEAN AIR ACT COMPLIANCE. New start projects, including extensions of existing fixed guideway systems, have consequences for air quality at both the regional and local levels and must be analyzed according to the requirements of EPA's transportation conformity regulation. (21) At the regional or corridor scale, the effects of a new start on mode share and travel patterns within the region should be assessed in the development of the metropolitan transportation plan and the TIP. The regional emissions analyses for the plan and TIP are conducted by the MPO, but the grant applicant or project sponsor is responsible for providing a sufficient description of the project design concept and scope to permit an assessment of the proposed project's effects on the area's transportation network. Both the MPO and FTA must make conformity determinations for the plan and TIP. Past analyses of new start projects in the context of the long-range transportation plan have shown small but positive impacts on the regional emissions burden. The potential for greater emission reductions from a new start depends to a great extent on the implementation of complementary measures to support transit use in the region or corridor, such as travel demand management actions and land-use controls to support transit.
Certain parts of a fixed guideway project, however, may cause localized adverse air quality impacts; for example, large parking lots or structures at stations or terminals may lead to elevated levels of carbon monoxide during periods of peak use. The localized effects of these projects are usually assessed by means of air quality dispersion modeling. Air quality dispersion modeling is typically done during the environmental analysis phase of the new start project when decisions concerning design and location are being made. Results of the air quality analysis and the project-level conformity determination are contained in the EA or final EIS for the project.
In general, a new start project is treated as a regionally significant project for purposes of the air quality conformity regulations. As a result, a new start project will usually be required to comply with the most technical or extensive requirements of those regulations. A grant applicant should consult with the FTA Regional Office and become familiar with the Clean Air Act requirements to ensure that, in its various stages of development, the project complies with the applicable air quality requirements.
AVAILABLE FUNDING AND THE NEED FOR PRIORITIES. Congress has allocated 40 percent of the amount available for the Capital Program for construction of new fixed guideway systems and extensions to fixed guideway systems. (22) In almost any given year, however, new start funds available have fallen short of the funds requested by grant applicants. Therefore, a ranking of the authorized projects has been necessary.
FTA's role in establishing priorities for new start funding derives from 49 U.S.C. § 5309(m)(3) (23) which requires the Secretary of Transportation to transmit each year a recommendation for the allocation of new start funding to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. Each year FTA prepares and submits the required "Report on Funding Levels and Allocations of Funds," which identifies the most worthy new start projects that merit funding in the following fiscal year. Interested grant applicants can obtain a copy of the current report (referred to as "the Section 3(j) report") from the Regional Offices. FTA's criteria for making new start funding recommendations are described in the paragraphs below.
FTA RATING SYSTEM. In the "Report on Funding Levels and Allocations of Funds," FTA uses a number of evaluation criteria to rate the various projects and present to Congress its findings and recommendations for allocating new start funds. Criteria currently used are:
1. Readiness--ability to expend funds soon after they are appropriated by Congress and obligated by FTA.
2. Project justification--mobility improvements, environmental benefits, cost-effectiveness (including cost per new rider and cost per hour of travel time saved), and operating efficiencies.
3. Local financial commitment--percentage of the project paid for with local/state funds, the soundness of the capital finance plan, and the stability and reliability of local operating revenues.
4. Other factors--for example, local commitments to support land use and transportation policies, and inclusion of the project in a state's air quality implementation plan.
The first priority for available funds is for projects for which FTA has already awarded a full funding grant agreement, or issued a "letter of intent" to obligate funds from future available appropriations (see paragraph 8 below).
The information used to address the rating criteria is developed as part of the local planning and project development process (see paragraph 3 above). From time to time FTA may issue policy statements that modify or clarify the rating criteria.
LETTER OF INTENT. (24) On occasion, FTA will issue to a grant applicant a "letter of intent" to obligate funds from future available appropriations. When issued, letters of intent usually are to finance major capital projects. At least 30 days before issuing a letter of intent, FTA must notify the House Committee on Transportation and Infrastructure and the Senate Committee on Banking, Housing, and Urban Affairs of the proposal to issue. These congressional committees authorize the FTA program. When a letter of intent is issued for a fixed guideway project, the amount stipulated must be sufficient to complete at least an operable segment. A letter of intent is not an obligation; nor is it an administrative commitment. FTA may not make an obligation or an administrative commitment in connection with a letter of intent except as funds are provided in appropriations acts.
TIMING OF THE PROJECT DEVELOPMENT PROCESS. The length of time required for the process depends upon several factors, including:
1. Nature of the corridor;
2. Complexity of the project alternatives;
3. Magnitude and nature of potential environmental impacts;
4. Status of local planning data bases, e.g., socioeconomic, transportation systems data;
5. Quality of local analysis tools, e.g., travel demand forecasting, cost estimation;
6. Competence and motivation of local agency staff; and
7. Absence or presence of local consensus on how to proceed.
PROJECT MANAGEMENT PLAN. As a condition of Federal assistance, a grant applicant for a major capital investment project must prepare a project management plan. (25) A major capital investment project is defined as: any new start, any fixed guideway modernization project generally valued at more than $100 million, or any other project the Federal Transit Administrator determines to be a major capital investment project. A grant applicant for a new start project must submit the project management plan in time for FTA to review the applicant's plan in conjunction with its new start grant application. Within 60 days of receiving the project management plan, FTA must make a determination either to approve or disapprove the plan, or FTA must notify the grant applicant that it was unable to complete the review. If FTA disapproves a project management plan, FTA must provide its reasons for disapproval to the applicant.
Although the grant applicant should refer to the statute and regulations to determine the amount of detail that must be provided, the project management plan must address the following matters:
1. Adequate staff with clear reporting relationships and responsibilities;
2. Budget that covers the project management organization, its consultants and other support costs;
3. Construction schedule;
4. Document control and recordkeeping system;
5. Change order procedures;
6. Appropriate organizational structures, management skills, and staffing levels throughout construction;
7. Quality control and quality assurance functions;
8. Materials testing policies and procedures;
9. Internal plan implementation and reporting;
10. Criteria and procedures for testing the operational system;
11. Periodic updates of the plan; and
12. Commitment to make monthly budget and schedule submissions about the project.
The grant applicant must agree to carry out the project management plan approved by FTA. Nevertheless, the project management plan is a dynamic document for managing engineering, design, construction, and start-up of a project. Periodic updating is expected as the grantee implements the project. At the grant application stage, the FTA expects the project management plan to provide sufficient detail to demonstrate the grant applicant's technical capacity to carry out the project. The plan for managing later stages of the project may be laid out in general terms with a description of how and when the details will be developed, but the grant applicant must demonstrate that the plan will be developed and implemented as necessary to stay ahead of the implementation of the project.
VALUE ENGINEERING REQUIREMENTS. FTA encourages the application of value engineering to the planning, design, and construction of all federally assisted construction projects and requires its use on major capital projects.
Value engineering is the systematic application of recognized techniques that identify the function of a product or service, establish a value for that function, and provide the necessary function reliably at the lowest overall cost. In all instances, the required function should be achieved at the lowest possible life-cycle cost consistent with requirements for performance, maintainability, safety, and aesthetics.
Typically, a multidisciplinary team usually of five to seven people conducts the value engineering review. Teams may include, for example, electrical engineers, civil engineers, systems engineers, electronic traction experts, signal engineers, maintenance experts, and operations experts.
The training of grantee staff members in value engineering techniques is an eligible project cost. Grantees are encouraged to use independent consultants with expertise in value engineering to prepare value engineering studies. Grantees are also encouraged to use disadvantaged business enterprises.
Value engineering consultants are usually hired during preliminary engineering. FTA cannot approve a grant application for final design funding or a full funding grant agreement (see paragraph 12 below) until value engineering is complete. After every value engineering review, grantees must provide information to the FTA Regional Office about the changes recommended by the value engineering team.
FULL FUNDING GRANT AGREEMENT. FTA is required to use a full funding grant agreement (FFGA) (26) in providing Federal financial assistance for new start projects. The Federal Transit Administrator also has the discretion to use an FFGA in awarding Federal assistance for other major capital projects. The FFGA defines the project, including cost and schedule; commits to a maximum level of Federal financial assistance (subject to appropriation); establishes the terms and conditions of Federal financial participation; covers the period of time for completion of the project; and helps to manage the project in accordance with Federal law. The FFGA assures the grantee of predictable Federal financial support for the project (subject to appropriation) while placing a ceiling on the amount of that Federal support.
The National Environmental Policy Act, the National Historic Preservation Act, Section 4(f) of the Department of Transportation Act of 1966 (27) and the FTA's implementing regulation (28) prohibit FTA from taking any major action before completing the required environmental review process. Hence, FTA will not enter into an FFGA until the environmental review process is complete. The culmination of the environmental review process for projects of major impact is the aforementioned record of decision, issued by FTA after publication and consideration of comments on the FEIS. Issuance of the ROD generally marks the end of preliminary engineering.
FTA Circular 5200.1, "Full Funding Grant Agreements Guidance," dated July 2, 1993, provides guidance. Questions regarding full funding grant agreements should be addressed to FTA Regional Offices.
PROCUREMENT ACTIVITIES BEFORE A GRANT IS AWARDED. Because a grant applicant may desire to undertake procurement activities using local funds before a grant is awarded and to be reimbursed by FTA once the award has been made, the grant applicant is reminded that all Federal procurement requirements apply prior to a grant award if the grant applicant is to be reimbursed for the Federal share. Hence, the reader's attention is directed to the requirements of FTA Circular 4220.1C, "Third Party Contracting Requirements;" to paragraph 14 below concerning "Buy America;" and to Chapter VI, paragraph 12, "Pre-award and Post Delivery Reviews." It is easy for a new grant applicant as well as an experienced applicant to overlook one or more of these requirements.
BUY AMERICA. Discussed in Chapter VI because it is a requirement common to all Capital Program applicants, the Buy America provision nevertheless is called to the attention of new start grant applicants planning to purchase rolling stock. The FTA Final Rule on Buy America Requirements appeared in the Federal Register of January 9, 1991. (29) No funds may be obligated by FTA for a recipient's project unless all steel, iron, and manufactured products used in the project are produced in the United States, unless a waiver has been granted by FTA or the product is subject to a general waiver. General waivers are listed in Appendix A to 49 C.F.R. 661.7. A specific waiver pertains to rolling stock. For further discussion, please see Chapter VI, paragraph 16, "Buy America."
LENGTH OF TIME FUNDS ARE AVAILABLE. Funds appropriated in FY 1994 for new starts that have not been obligated by FTA to a grantee by September 30, 1996, will no longer be available after that date, and will be made available for other discretionary projects. Funds appropriated in FY 1995 for new starts that have not been obligated by FTA to a grantee by September 30, 1997, will also be made available for other discretionary projects after that date. Similarly, funds appropriated in FY 1996 for new starts that have not been obligated by FTA to a grantee by September 30, 1998, will be made available for other discretionary projects after that date. This three-year availability is specified each year in the DOT Appropriations Act.
TECHNICAL ASSISTANCE. FTA offers a wide variety of training courses, guidance manuals, and other forms of technical assistance for planning and project development. Information on available technical assistance can be obtained from Regional Offices (see Chapter X).

Chapter Notes:

formerly 3(k)(1)(B) of the Federal Transit Act, as amended ("the Act")
formerly Section 3(i) of the Act
49 U.S.C. § 5303, formerly Section 8
49 U.S.C. § 5313(b), formerly Secrtion 26(a)(2)
49 U.S.C. § 5307, formerly Section 9
formerly Section 3
Regulations governing the metropolitan planning process can be found at 49 C.F.R. Part 613, Subpart C and at 49 C.F.R. Part 450, Subpart C, "Metropolitan Transportation Planning and Programming."
49 U.S.C. § 5307, formerly Section 9
49 U.S.C. § 5303, formerly Section 8
49 U.S.C. § 5313(b), formerly Section 26(a)(2)
49 U.S.C. § 5309(e)(2)(A), formerly Section 3(i)(1)(A)
under 49 U.S.C. § 5309(e)(5), formerly Section 3(i)
in accordance with 49 U.S.C. § 5309(e)(6)(A), formerly Section 3(i)(5)(A)
formerly Section 3
formerly Section 3
formerly Section 9
formerly Section 9
formerly Section 3
formerly Section 3
at 23 C.F.R. § 771.127
40 C.F.R. Part 51
49 U.S.C. § 5309(m)(1)(B), formerly Section 3(k)(1)(B)
formerly Section 3(j)
Authority for letters of intent rests with 49 U.S.C. 5309(g), formerly Section 3(a)(4)(A).
required by 49 U.S.C. § 5327(a), formerly Section 23(d), and FTA project management oversight regulations at 49 C.F.R. Part 633
49 U.S.C. § 5309(e)(7), formerly Section 3(i)(6)
now codified at 49 U.S.C. Section 303
at 23 C.F.R. Part 771
49 C.F.R. Part 661

Return to Chapter 5 Table of Contents

Return to Circular Table of Contents

CHAPTER VI - REQUIREMENTS COMMON TO ALL CAPITAL PROGRAM GRANT APPLICATIONS
TABLE OF CONTENTS

INTRODUCTION
PROJECT INCLUSION IN TIP AND STIP
ORGANIZATION OF THE CHAPTER
SECRETARY'S DETERMINATIONS
1. Relationship Between Urbanized Area Formula Program and Capital Program Applications
2. Legal Capacity
3. Financial Capacity
4. Technical Capacity
5. Satisfactory Continuing Control
6. Capability to Maintain
PROCUREMENT RESTRICTIONS (SPECIAL REQUIREMENT CONCERNING SPECIFICATIONS)
PUBLIC HEARING REQUIREMENTS; REQUIREMENTS FOR PUBLIC PARTICIPATION IN STATEWIDE AND METROPOLITAN PLANNING
ENVIRONMENTAL PROTECTION
CLEAN AIR ACT
PRIVATE ENTERPRISE CONCERNS
1. Participation by Private Enterprise
2. Acquisition of Private Mass Transportation Facilities
3. Charter and School Bus Operations
REAL PROPERTY ACQUISITION
RELOCATION
PRE-AWARD AND POST DELIVERY REVIEWS
LABOR STANDARDS
1. Davis-Bacon Wage Rates
2. Protection of Transit Employees
TRANSPORTATION OF THE ELDERLY AND PERSONS WITH DISABILITIES
NONDISCRIMINATION-CIVIL RIGHTS REQUIREMENTS
1. General
2. Nondiscrimination
3. Title VI (Service Delivery and Benefits)
4. Equal Employment Opportunity
5. Disadvantaged Business Enterprise
6. Transportation of Persons with Disabilities
BUY AMERICA
1. Basic Requirement
2. General Buy America Requirements Contrasted with Special Requirements for Rolling Stock
3. Waivers
4. Waiver for Small Purchases
5. Regional Offices Available to Assist
DRUG AND ALCOHOL TESTING
DRUG-FREE WORKPLACE
LOBBYING
INTEGRITY - DEBARMENT AND SUSPENSION
SEISMIC DESIGN AND CONSTRUCTION STANDARDS
REQUIREMENTS CONCERNING PROJECT ACTIVITIES IN ADVANCE OF FEDERAL FUNDS
1. Blanket Authority Under Formula Programs to Incur Pre-Award Costs
2. Letter of No Prejudice
3. Advance Capital Project Authority
LEASE VS BUY CONSIDERATIONS

CHAPTER VI
REQUIREMENTS COMMON TO ALL CAPITAL PROGRAM GRANT APPLICATIONS

INTRODUCTION. This chapter discusses requirements common to all applications for Capital Program assistance authorized by 49 U.S.C. § 5309. (1) Earlier chapters discussed requirements that apply particularly to applications for bus-related grants, or fixed guideway modernization projects, or new starts. Grant applicants, therefore, should refer to the chapter or chapters that apply to the grant application at hand as well as follow the requirements in this chapter.
The Federal Transit Administration (FTA) relies on the representations made by a grant applicant in its application. Thus, FTA's commitment to a project is based upon reliance on descriptive documents and on assertions, assurances, and certifications provided by the grant applicant in its application. It is important to note that erroneous statements or failure to disclose significant information in an application can jeopardize Federal funding.
Requirements vary in the action a grant applicant must take. Some requirements identify explicit steps to be taken--for example, grant applicants must have provided an opportunity for public comment on the proposed project. Other requirements oblige grant applicants to document a claim, for example, that the bus spare ratio is within an acceptable percentage. Still others ask for certification that the requirement will be met--for example, that the grant applicant will establish a drug-free workplace policy; and others, again, lay out a philosophical precept requiring no specific, immediate action-- for example, the statement of national policy that transit services are to be made available to the elderly and to persons with disabilities. (2)
When a grant applicant must supply supporting documentation, an example will be included in the circular, where practicable, presenting a sample document. Titles of the examples are identified in the text and the examples are provided in Chapter IX, arranged in alphabetical order by title. When a certification is required, the reader will be directed to the location of standard language. Also, in many cases when a certification is required, a brief discussion will be included identifying those aspects the grant applicant should take into consideration when so certifying.
Grant applicants are urged to make early contact with the appropriate Regional Office to discuss their proposed projects. Some requirements call for extensive planning and should be addressed long before the grant application is to be submitted, and Regional Office staff can guide a grant applicant toward efficient action. Preparing for the project may even include sending staff to courses on, for example, procurement practices, and to FTA-sponsored regional conferences to gain understanding and learn about best practices. It may also be useful to talk with staff of state transportation departments and of other grantees that have applied for assistance to undertake similar projects.
For grant applicants that have received FTA grants previously under the Capital Program (3) or under the Urbanized Area Formula Program,(4) or have been found in compliance as a result of a recent triennial review audit, there will be far less new documentation to submit. If unresolved compliance issues remain outstanding, however, the grant applicant should work with the Regional Office on these matters. (See paragraph 4a below for information about triennial reviews.)
PROJECT INCLUSION IN TIP AND STIP. Before FTA may make a Capital Program grant, adequate planning must take place. (5) The project proposed must be a product of the metropolitan planning process and/or the statewide planning process: That is, all transit projects for which Federal funds are expected to be used and that are within metropolitan planning boundaries must be included in a metropolitan Transportation Improvement Program (TIP) approved by the metropolitan planning organization (MPO) and the Governor and in a statewide transportation improvement program (STIP) that has been approved by FTA and FHWA. Projects not within metropolitan planning boundaries are required only to be in the STIP. The application should identify the particular TIP and STIP (or amendments) containing the project, and should include, in particular, the years covered by the TIP and STIP referenced, and the appropriate page numbers. A statement identifying the date that FTA and FHWA approved the STIP (or STIP amendment) that contains the proposed project must be provided.
Because the planning provisions of 49 U.S.C. chapter 53 (6) have introduced several new steps into the planning process, particularly pertaining to statewide planning and programming, and greatly increased the responsibilities of MPOs in selecting projects, the description and requirements of the planning process that precedes submission of a Capital Program grant application have been addressed in some detail and placed in a separate appendix of this circular (Appendix A).
ORGANIZATION OF THE CHAPTER. This chapter describing the requirements necessary to every Capital Program grant application begins with requirements Congress imposed in 49 U.S.C. § 5309 (7) on the Capital Program itself. These are followed by an explanation of requirements arising from other sections of 49 U.S.C. chapter 53 (8) and, finally, by an explanation of requirements arising outside of chapter 53, this latter category including other Federal statutes, regulations, Executive Orders, and Federal policies that apply to a Capital Program application.
SECRETARY'S DETERMINATIONS . The Secretary of Transportation is required by 49 U.S.C. § 5309(d) (9)to make several specific findings concerning the grant applicant's planning for a project and the applicant's capability to carry out the project. The Secretary of Transportation has delegated authority to make these determinations to the Federal Transit Administrator. The requirement that FTA make specific findings distinguishes its review of Capital Program (10) applications from its review of applications under other FTA grant programs, such as the Urbanized Area Formula Program, (11) where certifications may be relied upon. Therefore, it is the responsibility of the grant applicant (and particularly in the applicant's first application) to provide clear documentation to support a positive FTA determination.
Specifically, no grant or loan may be made by FTA under the Capital Program unless FTA finds that:
1. the project proposed is a product of the planning process, as earlier noted,
2. the grant applicant has or will have the legal, financial, and technical capacity to carry out the project,
3. the grant applicant has or will have satisfactory continuing control over the use of the equipment or facilities, and
4. the grant applicant has or will have the capability to maintain the equipment or facilities, and will maintain the equipment or facilities.
Requirements associated with an FTA finding of adequate planning, item (i), were discussed in paragraph 2 above. Before the requirements associated with a positive FTA finding for the remaining items are discussed, it may be useful first to review the way similar requirements are handled under the Urbanized Area Formula Program. (12)
1. Relationship Between Urbanized Area Formula Program and Capital Program Applications. A grant applicant for urbanized area formula funds (13) is required to certify annually (among other certifications) that it has or will have the legal, financial, and technical capacity to carry out the formula-funded project, that it has or will have satisfactory continuing control over the use of equipment or facilities and will maintain the equipment or facilities and that any project for which funds are requested has been part of the local planning process. (14) On the basis of these certifications, in conjunction with other factors, FTA is permitted to award a grant under the Urbanized Area Formula Program. FTA, however, is required by statute to conduct at least every three years a review and evaluation of the performance of urbanized area formula recipients in carrying out their programs. (15) These performance reviews are called triennial reviews. It is during the triennial review that FTA determines whether an urbanized area formula grantee is in compliance with Federal requirements, including the legal, financial, and technical capacity, satisfactory continuing control, and maintenance of facilities or equipment to which the grantee has certified.
  Returning to the discussion of Capital Program requirements, in making the determinations that a grant applicant for Capital Program funds has the capacities and capabilities required regarding these same matters, (16) FTA will rely on the findings in the grant applicant's most recent triennial review, if the Capital Program applicant is a recipient of Urbanized Area Formula Program funds.
  First-time Capital Program grant applicants, for which FTA has no triennial review findings or other audit findings, will need to submit the necessary documentation to allow FTA to make a positive determination.
  The paragraphs that follow discuss the subjects that FTA takes into account in making the findings for compliance with 49 U.S.C. § 5309(d). Specific documentation the grant applicant is required to submit is identified. Any other documentation suggested is just that, a suggestion, in order to list for the grant applicant the kinds of material the applicant may wish to provide or make reference to, to assist FTA in making the determination. To summarize, it is in the interest of the grant applicant to document its capabilities and capacities in its grant application.
2. Legal Capacity. Before FTA may award a grant for a Capital Program project, FTA must make a finding that the grant applicant has or will have the legal capacity to carry out the project. In making this finding FTA generally relies on the grant applicant's certification that it has or will have the legal capacity to carry out the project. Specifically, the applicant must be eligible and authorized under state or local law to request, receive, and spend FTA funds to administer FTA-assisted projects. Officials acting on behalf of the grant applicant must have appropriate authority designated by state or local law or by the governing body of the grant applicant. Although FTA does not routinely require grant applicants to submit an Opinion of Counsel, FTA expects applicants for their first Capital Program grant to submit an Opinion of Counsel as described below. FTA also retains the discretion to require any grant applicant to submit a legal opinion and other supporting documentation.
  The example, "Opinion," is provided as a guide in Chapter IX. An Opinion of Counsel identifies the legal authority of the grant applicant, citing, for example, state and local statutes, and states whether any significant legislation or litigation is pending that may affect the legal status of the applicant. It is not uncommon for legislation or litigation to be pending; its significance in terms of legal capacity and in terms of ability to complete the project determines whether or not it should be noted in the Opinion of Counsel. While the first Opinion of Counsel sets forth the basis that gives the grant applicant the authority to apply for FTA funding, the authority to apply for subsequent grants will be certified to in the annual certification process described in Chapter I, paragraph 4n. That affirmation appears in the certifications in Appendix C as Category I, Item A, and on the signature page.
  The grant applicant is expected to notify FTA of any change in local law, litigation, conditions, or any other event that may significantly affect the grantee's ability to carry out the project. Any change in status will require a new Opinion of Counsel.
  The authority of those officials acting on behalf of a public body grant applicant generally must be demonstrated by a resolution from the governing body of the grant applicant, a statute, or an ordinance showing the grant applicant has authority to file an official grant application, showing who has the authority to act on behalf of the applicant, and supporting the application. A certified copy of the authorizing resolution is required for the grant applicant's first application. A sample format is provided in Chapter IX as Example "Authorizing." For subsequent grant applications, FTA will rely on the signature page of the annual certification as shown in Appendix C.
3. Financial Capacity. Before FTA may award a Capital Program grant, FTA must make a finding that the grant applicant has or will have the financial capacity to carry out the project. Specifically, an applicant for Capital Program funds must be able to match and manage those funds, to cover cost overruns, to cover operating deficits through long-term stable and reliable sources of revenue, and to maintain and operate federally funded facilities and equipment. Financial capacity and proposed project financing must be documented. The source of local share must be identified and assurances must be provided that adequate local funds are available. The financial capacity of a grant applicant that has previously received a Federal grant will be revealed in its requisite annual independent organization-wide audit required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments," dated April 12, 1985.
  FTA Circular 7008.1, "FTA Financial Capacity Policy," defines the basis upon which FTA will make determinations of a grant applicant's financial capacity to receive a Capital Program grant. The directive refers to two aspects of financial capacity: One is the general financial condition of the transit operator. The general financial condition includes historical trends and current experience in financial factors affecting the ability of the grant applicant to operate and maintain the transit system at present levels of service. The information supporting an assessment of financial condition is usually documented in audited annual financial statements and other financial reports which address working capital levels, current assets versus current liabilities, capital accounts, debt levels, trends in transit costs compared to available revenues, and trends in relevant economic indicators.
  The second aspect of financial capacity is financial capability. Financial capability addresses the sufficiency of the grant applicant's funding sources to meet future operating deficits and capital costs. Financial capability refers to the stability and reliability of revenue sources to meet future annual capital and operating costs. Financial capability considers the nature of funds pledged to support operating deficits and capital programs, and changes forecast in fare and nonfare revenues. Capital costs include replacement and rehabilitation of existing equipment and facilities and new investments. Operating and maintenance costs include those for the present system and any increases caused by capital investments and service expansion.
  In considering financial capacity of the grant applicant, FTA takes into account the fact that a financial analysis must be undertaken and a financial plan must be developed by the MPO before programming a project into the TIP. That analysis and plan, and the subsequent inclusion of the project in the TIP, reflect the two aspects FTA considers in determining the grant applicant's financial capacity: the MPO financial plan must demonstrate that TIP projects can be carried out while the existing transportation system is being adequately operated and maintained (financial condition); and only projects for which funds can reasonably be expected to be available may be included in the TIP (financial capability).
  FTA assesses financial capacity of a Capital Program grant applicant when FTA approves the STIP and again when FTA selects projects for Capital Program funds. The level of detail of the financial capacity assessment will be consistent with the size of the transit system being considered and the scale of the capital investments being proposed. Depending upon the scale of the proposal, the grant applicant may wish to provide FTA by document or by reference with such supporting information as that contained in the TIP, short-range transit plans, 3-to-5-year projection of capital and operating revenues and expenses, capital budgets, reports on financial operations such as periodic financial statements and audit reports, or identification of state and local tax revenues.
4. Technical Capacity. Before FTA may award a Capital Program (17) grant, FTA must make a finding that the grant applicant has or will have the technical capacity to carry out the project. Technical capacity involves the capability of the grant applicant to properly carry out and manage Federal grants. In making this finding, FTA generally relies on its experience with the grant applicant. A first-time grant applicant for a Capital Program grant must demonstrate that the applicant can carry out the project described in the grant application in accordance with the requirements of the grant agreement, and with all applicable laws, and regulations, using sound management practices. Thus, a certification that the grant applicant will comply with all requirements applicable to its grant application and to the grant agreement, when awarded, is required. Category I, Item B, "Standard Assurances," in Appendix C provides the certification language. Guidelines for management practices can be found in FTA Circular 5010.1B, "Grant Management Guidelines."
  Every grant application, first-time or subsequent, must include a proposed project milestone schedule. A sample schedule appears as Example "Project" in Chapter IX.
  A grant applicant must certify that its procurement system complies with all applicable requirements imposed by Federal laws, regulations, and executive orders, and the requirements identified in FTA Circular 4220.1C. The certification language appears as Category I, item H in Appendix C. Also, the grant applicant should review paragraph 5 below, "Procurement Restrictions: Special Requirements Concerning Specifications," for a discussion of the procurement system certification and its relationship to FTA's determination of technical capacity.
  1. FTA Expectations. FTA's view of grantee responsibilities in carrying out a project can be seen in the following edited excerpt from its grant management guidelines (FTA Circular 5010.1B). The grantee's responsibilities include actions to:
    1. Provide continuous direction over project operations;
    2. Provide adequate technical inspection and supervision of work in progress;
    3. Ensure conformity to grant agreements, applicable statutes, codes, ordinances, and safety standards;
    4. Maintain the project schedule and ensure that other performance goals are being achieved;
    5. Ensure compliance with FTA requirements on the part of other persons or entities working under contract or interagency agreements;
    6. Account for project property, provide for its repair and replacement, and maintain property records.
  2. Review of Past Experience. If a grant applicant has previously received FTA financial assistance and carried out FTA-sponsored projects, some questions that may be considered include the following:
    1. Who is responsible for grant administration, and what is the grant administration process?
    2. How did actual grant experience compare to proposed schedules, both activity timetable and drawdown schedules? Have delays been reasonable and explanations documented?
    3. What techniques were used to administer and manage project activities, including contractor work and force account activities? Have audits taken exception to force account activities or reimbursements from FTA?
    4. Was there timely closure of past grants? Do grants have unobligated balances or carryover amounts that appear excessive?
    5. Are progress reports and financial status reports submitted on time and do they contain the required information?
    6. Does the grantee have a cost allocation plan to support indirect administrative costs related to the grant program?
    7. How are changes to major capital and operating contracts approved? Are change orders reasonable in numbers and content?
    8. If past assistance involved a major capital project, did the grant applicant follow its Project Management Plan?
    9. If a grantee has received Federal assistance for the acquisition of rolling stock, is there indication the grantee ensures contractual vehicle specifications are met?
    10. What are the findings in independent audits and in triennial reviews?
5. Satisfactory Continuing Control. Before FTA may award a Capital Program grant, FTA must make a finding that the grant applicant has or will have satisfactory continuing control over the use of property acquired with Federal assistance. Generally, FTA relies on its experience with the grant applicant in making this finding. A grantee must ensure that the property is used in transit service, must dispose of any unneeded property in accordance with Federal requirements, and must provide safeguards against loss, theft, or damage. If the grantee leases federally assisted property either to another party or from another party, the lease must provide the grantee satisfactory continuing control over the use of that property, and the grantee must have had prior concurrence in the lease from FTA.
  Requirements for satisfactory continuing control vary somewhat for the following three types of property: real property (land) and facilities affixed to land; revenue rolling stock, such as buses or railcars, and nonrevenue rolling stock, such as towtrucks and supervisor vehicles; and other personal property (equipment).
  The grant applicant may wish to include brief descriptions or reference to documents supporting its capability to retain satisfactory control of project property. Documentation might come from such records as property inventory records, an excess real property utilization plan, procurement or purchasing manuals, annual audits and financial reports, fleet inventories, or contingency fleet plans.
  The following paragraphs identify factors FTA considers in making its determination of satisfactory continuing control.
  If a grant applicant is requesting assistance for equipment or facilities, FTA must have on file a current description of the transit system and service, including supplemental services, operated directly by the applicant or by contract to another party. If the grant applicant leases vehicles to or contracts for their operation by another party, the grant application should include a description of how control is maintained or a copy of the lease agreement.
  Applicants that have received grants from FTA in prior years are subject to requirements regarding inventory systems, an aspect of satisfactory continuing control. All grantees must conduct biennial inventories of real property, reviewing all grantee-owned real property acquired with FTA assistance to ensure that it continues to be needed for the purposes specified in approved grants. Grantees that are not states must also conduct biennial inventories of personal property (equipment), reviewing the need for the property as well as reconciling the inventoried property with its financial records. The biennial inventory of real property may indicate that FTA-assisted property is no longer needed; then grantees must prepare or update an excess real property utilization plan. Thus, evidence of continuing control could include discussion of the plan.
  With respect to removing real or personal property from service, FTA Circular 5010.1B, "Grant Management Guidelines," contains requirements to assist grantees in achieving the highest possible return. Conformance with the FTA procedures for removing property from service is an element FTA will consider as part of the determination of satisfactory continuing control.
  If a grantee leases vehicles to another entity, FTA is interested in lease provisions regarding maintenance, storage, recordkeeping, return of the vehicle, and other items that guarantee the vehicle is used only for transit service. How the grantee ensures that its service contractors and lessees are complying with contracts or leases is an element FTA considers in determining satisfactory continuing control.
  For grantees with 50 or more buses, FTA has established as a reasonable spare ratio 20 percent of the vehicles operated in maximum service. Some vehicles (after they have achieved their minimum normal service life) may be set aside to be used in specific contingencies, provided the grant applicant has developed a contingency plan for the vehicles. Spare ratios and contingency planning are part of the FTA determination of satisfactory continuing control.
  FTA considers satisfactory continuing control to be part of proper project management. Additional property management requirements are set out in the "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" at 49 C.F.R. Part 18 (referred to as the Common Rule). Please refer to the following: for real property, 49 C.F.R. § 18.31; equipment, 49 C.F.R. § 18.32; and supplies, 49 C.F.R. § 18.33. New applicants are encouraged to obtain a copy of FTA Circular 5010.1B and the Common Rule before undertaking an FTA capital project.
6. Capability to Maintain. The grantee must keep equipment and facilities acquired with Federal assistance in good operating order. This includes maintenance of rolling stock (revenue and non-revenue), machinery and equipment, and facilities.
  Regulations implementing the Americans with Disabilities Act of 1990 (ADA) require that all accessibility features of fixed-route transit such as lifts, elevators, and securement devices be properly maintained and kept operational.
  FTA requires grantees to document maintenance plans, systems for recording warranty claims, and enforcement of warranty claims. At the same time, FTA does not prescribe maintenance standards or requirements. A first-time Capital Program grant applicant should include in its grant application enough information to permit FTA to make a positive finding that the applicant will exercise satisfactory continuing control over the use of facilities and equipment acquired with Capital Program funds and that the applicant has a maintenance plan and the capability to maintain facilities and equipment purchased with grant funds. If the first-time Capital Program grant applicant has been the subject of a recent performance review under the Urbanized Area Formula Program, (18) pertinent findings from the review may be sufficient to allow FTA to make a positive finding without further documentation.
  Questions that a grant applicant may wish to ask of itself regarding its capability to maintain include: Are adequate funds and staff available to employ and train mechanics and other personnel? Are adequate tools, parts, manuals, and equipment available? What is the usual length of time vehicles remain out of service? What is the program of warranty-related preventive maintenance? Answers to these questions, along with a review of annual financial statements and capital and operating budgets devoted to maintenance, may assist the grant applicant in assuring itself and FTA that it has the capability to maintain project property.
PROCUREMENT RESTRICTIONS (SPECIAL REQUIREMENT CONCERNING SPECIFICATIONS). A grant applicant should be aware that each procurement financed with FTA assistance must conform to the requirements of FTA Circular 4220.1C, "Third Party Contracting Requirements." A third party contract refers to any purchase order or contract awarded by a grantee to a vendor or contractor using Federal financial assistance awarded by FTA. The circular's guidelines contain general procurement requirements of the DOT Common Rule, which includes specific statutory procurement provisions required by FTA's enabling legislation and other special concerns to FTA. These provisions include, but are not limited to, a prohibition against the use of FTA grant or loan funds to support exclusionary or discriminatory specifications (19) and special provisions for procuring rolling stock, and management, architectural, and engineering services. (20)
The procurement certification noted in paragraph 4d above is one of the items of information FTA relies on to make a positive finding of technical capacity when reviewing a grant application.
It should be noted that both the Common Rule (21) and FTA Circular 4220.1C prohibit state or local preferences in procurements, except in certain restricted circumstances.
PUBLIC HEARING REQUIREMENTS; REQUIREMENTS FOR PUBLIC PARTICIPATION IN STATEWIDE AND METROPOLITAN PLANNING.
A grant application for a capital project that will "substantially" affect a community or its mass transportation service must include a certification that the grant applicant has:
1. provided an adequate opportunity for a public hearing with adequate prior notice;
2. held the hearing unless no one with a significant social, economic, or environmental interest requested one;
3. considered the social, economic, and environmental effects of the project; and
4. found that the project is consistent with official plans for the comprehensive development of the urban area.
This requirement can be found in 49 U.S.C. § 5323(b) ("General provisions on assistance"). (22)
Usually, a project that "substantially" affects a community or its mass transportation service is one for which an environmental impact statement (EIS) must be prepared, in compliance with the National Environmental Policy Act (NEPA). (The joint FTA/FHWA rules for compliance with NEPA are codified at 23 C.F.R. Part 771). For this type of project, the EIS is the instrument by which the social, economic, and environmental effects of the project are considered, as well as its consistency with official land use plans for the urban area. Thus, as a practical matter, a hearing held in compliance with 49 U.S.C.§ 5323(b), above, will be focused on the social, economic, and environmental effects presented for public review and comment in the draft EIS for that project.
The great majority of capital projects for which FTA provides assistance do not require preparation of an EIS; they require only preparation of an environmental assessment (EA), or they fall within a categorical exclusion from analysis under NEPA. Usually, projects that do not require EISs are not subject to the requirements of 49 U.S.C. § 5323(b), because they do not "substantially" affect the community or its mass transportation service. On occasion, however, there may be substantial public controversy, or other significant social or economic issues involving a project for which an EIS is not required. In such an instance, FTA may determine that the project does in fact "substantially" affect the community or its mass transportation service, and if so, FTA will apply the requirements of Section 5323(b) to that project.
In any instance in which a hearing is held to meet the requirements of Section 5323(b), a copy of the transcript of the hearing must be submitted to FTA. Additionally, FTA must review that transcript (23) to establish that an adequate opportunity to present views was given to all parties with a significant social, economic, or environmental interest, and that the environmental document (EIS or EA) adequately states the environmental impacts of the project, the adverse environmental effects which cannot be avoided, alternatives to the proposed action, and the irreversible and irretrievable impacts on the environment. These public hearing and transcript requirements are codified in the joint FTA/FHWA environmental regulations. (24) Further information about hearing notices and related subjects is available through FHWA and FTA planning and environmental guidance documents.
Category III in Appendix C provides the language for the certification.
It should be noted that the public hearing requirements of 49 U.S.C. § 5323(b) (25) are separate and apart from the requirements for public participation in statewide and metropolitan planning established by the Intermodal Surface Transportation Efficiency Act of 1991 ("ISTEA"). All capital projects financially supported by FTA are subject to statewide transportation planning requirements and, in metropolitan areas, to metropolitan planning requirements. FTA and FHWA have codified procedures for compliance with the ISTEA statewide and metropolitan planning mandates--including the mandates for public participation in the development of long-range plans and transportation improvement programs--in the two agencies' joint planning regulations. (26) The practical effect of these statewide and metropolitan planning requirements is to expose every FTA-funded capital project to a certain level of public scrutiny, regardless of whether that project will "substantially" affect a particular community and its mass transportation service.
ENVIRONMENTAL PROTECTION. FTA's environmental review process has two primary objectives: to fully disclose the probable environmental impacts resulting from a proposed project and to develop measures that will avoid or mitigate adverse environmental effects. Before FTA may approve a Capital Program grant, FTA must make a finding that either "no adverse environmental effect is likely to result from the project, or no feasible and prudent alternative to the effect exists and all reasonable steps have been taken to minimize the effect." (27)
In addition to specific statutory requirements for the Capital Program, (28) several other Federal environmental statutes and regulations may apply to the project. The following statutes often impose requirements on the project: the National Environmental Policy Act of 1969, as amended; (29) section 4(f) of the DOT Act protecting historic sites and public parks and refuges; (30) section 106 of the Historic Preservation Act; (31) section 404 of the Clean Water Act, as amended; (32) and section 176 of the Clean Air Act, as amended. (33) Federal environmental regulations applicable to the Capital Program include the joint FHWA/FTA regulations, "Environmental Impact and Related Procedures." (34) These joint regulations have been drafted to accommodate most of the requirements of the statutes listed above and their implementing regulations. Other environmental requirements have been established by Federal executive orders or state laws, e.g., protection of wetlands, flood plains, prime agricultural lands, and coastal zones.
Capital Program projects have a wide range of environmental effects and thus require varying levels of documentation and review. The joint FHWA/FTA regulations classify projects based on their potential to significantly affect the environment--including the built environment as well as natural resources--and they detail the environmental analysis and review process required, depending on the classification. New start projects usually involve significant social, economic, and environmental impacts and will, therefore, require preparation of formal environmental documents, in most cases an environmental impact statement. In contrast, most fixed guideway modernization projects qualify for an expedited environmental review if the grant applicant demonstrates that the conditions for a "categorical exclusion" are met. A project with uncertain environmental impacts requires an environmental assessment. Substantial controversy surrounding a proposed project will influence the level of documentation and review required for the project. The classification of a project in the context of FTA's environmental impact procedures is determined by the FTA Regional Office in consultation with the grant applicant.
The preparation and review of environmental documents for major transit projects can be a lengthy process, involving technical analysis of a wide range of project impacts and subsequent coordination with Federal, state, and local agencies having regulatory programs for protecting various types of environmental resources. To the extent permitted by Federal law and regulations, a grant applicant may avoid duplication by complying with state or local environmental protection requirements in the course of complying with the joint FHWA/FTA regulations. Early consultation with the FTA Regional Office concerning environmental requirements is critical, because a federally assisted project may not advance beyond the preliminary engineering phase until the environmental review has been completed. This process is completed only when FTA has approved a record of decision or a finding of no significant impact or a categorical exclusion, depending on the project's classification.
CLEAN AIR ACT. The Clean Air Act Amendments of 1990 represent a renewed effort to achieve healthful air quality across the country. In most areas currently in violation of national air quality standards ("nonattainment" areas), transportation is a major source of air pollution. Hence, the 1990 Amendments contain a wide array of provisions to limit pollution from mobile sources--for example, stricter urban bus emission standards, requirements for cleaner fuels, emissions testing for in-use buses, and greater emphasis on transportation control measures in regional air quality planning.
The 1990 Amendments also establish more stringent "conformity" requirements to ensure that federally-assisted transportation projects support state (air quality) implementation plans (SIPs)--the strategies developed by state air agencies for attaining the air quality standards by deadlines prescribed by law. FTA must find that capital projects needing FTA assistance conform to the applicable SIP before the projects may be advanced to construction. The projects must also be included in metropolitan transportation plans and programs (TIPs) that have also been found to conform to the SIP.
The procedures and criteria governing the conformity review process are specified in Environmental Protection Agency (EPA) conformity regulations at 40 C.F.R. Part 51. These regulatory requirements can be complex, depending primarily on the scale of the project and the severity of the area's air pollution problem. In general, major transit projects, e.g., new fixed guideways or extensions, must be analyzed at both the regional and local scales. The MPO has responsibility for performing a regional emissions analysis for all major highway and transit projects in the transportation plan and TIP. The grant applicant has responsibility for analyzing the localized effects of a federally-assisted transit project if that is required. Although it is generally accepted that major transit infrastructure improvements have a beneficial effect on air quality overall, certain projects in certain areas can create localized "hot-spot" violations that must be mitigated, for example, potential carbon monoxide violations at park-and-ride facilities and elevated levels of diesel soot and smoke (small particulate matter) at large bus or intermodal terminals. Hence, the conformity review process is applied at the plan, program, and project levels, and there must be a documented conformity finding by FTA at each step in order to advance a major project.
The EPA regulation also establishes a list of highway and transit projects that are exempt from the process outlined above. These are projects presumed to have insignificant emissions effects even at the local scale, and normally they can be advanced without regard to the conformity requirements. A number of smaller transit projects are covered under the list of exemptions at 40 C.F.R. § 51.460. Regardless of the type of project being considered, early consultation with FTA is essential to lay out the applicable Clean Air Act requirements. The FTA Regional Office can also provide information on selected provisions of ISTEA that support clean air objectives--for example, the Congestion Mitigation and Air Quality Improvement Program (see Chapter III, paragraph 2a) and the increased Federal share for the purchase of vehicle-related equipment necessary to comply with the Clean Air Act Amendments (see Chapter I, paragraph 4j). The FTA Regional Office can also direct the grant applicant to appropriate contacts in EPA concerning other Clean Air Act provisions affecting transit operators, such as the annual emissions testing program for in-use transit buses and the urban bus engine retrofit/rebuild program.
PRIVATE ENTERPRISE CONCERNS . The concerns of transit law regarding private enterprise focus mainly on including the private sector in participating in local transit programs, ensuring that adequate compensation is provided a private provider when its transit facilities and equipment are acquired by a state or local governmental authority, and protecting private providers of transit from competition with federally assisted transit providers.
1. Participation by Private Enterprise. Both Federal transit law and joint FHWA/FTA planning regulations (35) (discussed in Appendix A of the circular) impose strong requirements for private as well as public sector participation as transportation programs are developed. Plans and programs required for Federal transit assistance must encourage the participation of private enterprise to the maximum extent feasible. (36)
  Federal law recognizes the special concerns of private transportation providers that compete with public mass transit authorities. By law, existing private transportation providers are afforded certain safeguards from competition. Specifically, FTA is prohibited from providing Federal assistance to a governmental body that provides service in competition with, or supplementary to, service currently provided by a private transportation company, unless FTA finds that the local transportation program developed in the planning process provides for participation by private transportation companies to the maximum extent feasible. (37)
  Accordingly, Federal transit law (38) and the joint FHWA/FTA planning regulations direct special attention to the concerns of private transit providers in planning and project development. Joint FHWA/FTA planning regulations specifically require that private transit providers, as well as other interested parties, be afforded an adequate opportunity to be involved in the early stages of the plan development and update process. (39) While FTA supports the participation of private transit providers in local mass transportation programs, FTA no longer imposes prescriptive requirements for determining whether a grant applicant has made adequate efforts to integrate private enterprise in its transit program, as explained in the FTA Federal Register Notice "Private Enterprise Participation," of April 26, 1994. (40)
  FTA relies on the local planning process, which must comply with rigorous planning and private enterprise requirements, (41) and the joint FHWA/FTA planning regulations. To determine the adequacy of a grant applicant's efforts to incorporate private enterprise in its transit program, FTA monitors compliance with statutory and regulatory private enterprise requirements as part of the annual audits and the triennial reviews (discussed earlier) under the Urbanized Area Formula Program. (42)
2. Acquisition of Private Mass Transportation Facilities. Although acquisition of a private transit provider's property takes place less often than when Federal transit assistance was first established, Federal law recognizes the special concerns of private transportation providers whose property is acquired by public transit authorities. First, no Federal transit assistance authorized by 49 U.S.C. chapter 53 (43) may be expended to acquire equipment or facilities currently being used in service in an urban area unless the transportation improvement program demonstrates that the acquired property will be so improved that the transportation needs of the area will be served better. (44) Second, FTA is prohibited from awarding Federal assistance to a governmental body to acquire property from a private transportation provider unless just and adequate compensation under state or local law will be paid to the private provider for acquisition of its franchises or property. (45)
3. Charter and School Bus Operations. By law, private providers of charter and school bus service are afforded certain protections from competition with public transit authorities. Grant applicants that operate bus or van services should refer to Chapter III, paragraph 8c, for a full explanation of the limits these protections place on federally assisted transit operators.
REAL PROPERTY ACQUISITION. If a grant applicant intends to use Federal financial assistance in any phase of a project needing real estate, the applicant must provide the assurances required by Section 305 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act), (46) and U.S. DOT implementing regulations. (47) Adherence to the Uniform Act and the DOT implementing regulations ensures that owners of real property, acquired for projects where there is Federal financial assistance in any part of project costs, are treated fairly and are provided benefits uniformly. Real property consists of the interests, benefits, and rights inherent in the ownership of real estate (with real estate being an identified parcel or tract of land, including improvements, if any). In some jurisdictions, the term real estate and real property have the same legal meaning.
Before acquiring real property, the grantee must first establish market value of each parcel to be purchased with project funds. Except for acquisition of rail right-of-way which has not been abandoned, market value is established through appraisal and appraisal review by state-certified appraisers. No owner shall be required to surrender possession of real property until he or she has been paid the agreed purchase price or the proper amount has been deposited in condemnation court for the owner's benefit. The grantee will expeditiously reimburse the owners for reasonable, necessary, and actual expenses incidental to transfer of title. If the acquisition leaves the owner with an uneconomic remnant, the grantee shall offer to acquire that remnant. (An uneconomic remnant is a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property and which the grantee has determined has little or no value or utility to the owner.)
Any decrease or increase in market value caused by the project or caused by the likelihood that a particular property is to be acquired for the project will be disregarded in determining compensation for the property. Prior FTA concurrence must be obtained for property transactions in excess of $250,000.
Real property may be contributed as part of the local matching share for a grant if the property is needed to carry out the scope of the project for which the grant was made and provided there is not a Federal interest in the property (meaning no Federal funds were used to purchase the property). The donated property interest much be appraised for its current market value. Credit can only be allowed for that portion of the property required for project use. The property then becomes a part of the project and subject to the reporting and disposition requirements.
Category X in Appendix C provides standard language for the assurances involving real property and relocation.
RELOCATION. (48) When a project requires displacement of families, individuals, businesses, partnerships, corporations or associations, the grant application must indicate how the relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act), (49) and U.S. DOT implementing regulations (50) will be met. The Uniform Act, in addition to defining property owner rights in land acquisition, requires the acquiring party to establish a program of relocation assistance for persons displaced by projects receiving Federal financial assistance. It applies to FTA projects in which relocation is an inevitable consequence of land acquisition.
The Uniform Act reaffirms these basic policies that are applicable to FTA projects:
1. No persons shall be displaced from their residences unless and until adequate replacement housing has been made available to them.
2. Prior to approval of a project that involves displacement of persons, the grant applicant must give assurance that it has an adequate relocation program for persons to be displaced by the project and that an equal number of decent, safe, and sanitary dwellings will be made available (built, if necessary) for persons who are displaced. Replacement housing must be located in the same area or in areas generally not less desirable with respect to public utilities and public and commercial facilities, reasonably accessible to their places of employment, at rents or prices within their financial means. Replacement housing must be open to all persons regardless of race, color, religion, sex, or national origin.
3. No construction that involves displacement will be authorized to proceed until the persons to be displaced have been offered adequate and fair housing in accordance with Federal regulations.
  If relocation is involved, a grant applicant must provide assurances, in accordance with Section 210 of the Uniform Act, that it will comply with the Uniform Act and DOT regulations, (51) particularly with those requirements pertaining to fair and reasonable relocation payments and assistance, relocation assistance programs, and comparable replacement dwelling within a reasonable time. Category X in Appendix C provides standard language for the assurances involving relocation and real property.
PRE-AWARD AND POST-DELIVERY REVIEWS. FTA requires (52) that grant recipients purchasing revenue passenger rolling stock undertake reviews of the rolling stock prior to the award of the bid, during manufacture, and following delivery of the vehicles. The reviews, specified by FTA regulations, (53) are intended to improve compliance with FTA Buy America requirements, the grantee's bid specifications, and Federal Motor Vehicle Safety Standards.
Reviews may be conducted by the grantee's staff or by a contractor for the grantee. The regulations require a resident inspector who is neither an agent nor an employee of the manufacturer to review specification compliance at the manufacturing site, unless the procurement is for 10 or fewer buses or for unmodified vans. Supporting documentation resulting from these reviews must be retained by the grantee in a manner readily available for FTA inspection. A grant applicant seeking to acquire rolling stock must certify that it will comply with FTA pre-award and post-delivery review requirements. Category V in Appendix C presents a standard certification. A discussion of Buy America requirements appears in this chapter under paragraph 16, "Buy America." Grant applicants requesting Federal funds to purchase buses or vans should review Chapter III, paragraph 8b(4) for a description of the review requirement as it pertains to buses or vans. Grant applicants requesting Federal funds to purchase rail cars should refer to Chapter IV, paragraph 6d(5) for a similar description pertaining to rail cars.
LABOR STANDARDS.
1. Davis-Bacon Wage Rates. Prevailing wage requirements of the Davis-Bacon Act, as amended, apply (54) to transit construction projects authorized by 49 U.S.C. chapter 53. (55)
  FTA must ensure that laborers and mechanics employed for construction projects covered by the Davis-Bacon Act will be paid at least the prevailing wages for their locality as determined by the Department of Labor (DOL). Thus, FTA may not award any FTA assistance authorized by 49 U.S.C. chapter 53 without obtaining adequate assurance that the prevailing wage requirements and required labor standards imposed by the Davis-Bacon Act will be maintained. This is accomplished when the grantee signs the grant agreement, which incorporates by reference a Master Agreement containing construction labor requirements.
2. Protection of Transit Employees. (56) Before FTA may award a grant for capital or operating assistance, fair and equitable arrangements must be made to protect the interests of transit employees affected by the proposed FTA assistance. Those arrangements must be certified by the Secretary of Labor as meeting the requirements of the statute.
  When a labor organization (union) represents a group of affected employees in the service area of an FTA project, the employee protective arrangement is usually the product of negotiations or discussions with the union.
  These protections must be afforded to all transit employees in the service area of the project, including the employees of the grant applicant, employees of other FTA grantees, and employees of any other public or private transit provider, including providers of transit service by contract. Consequently, the grant application submitted to FTA must identify each transit provider in the service area of the project and be accompanied by a list of any union(s) and the transit provider's employees they represent. The grant application must also identify transit providers in the service area whose employees are not represented by a union.
  When any of the grant applicant's employees change the labor organization representing them, the grant applicant must identify the changes made in its next grant application submitted to FTA.
  The grant applicant can also facilitate DOL certification by identifying in the application any previously certified protective arrangements that have been applied to similar projects undertaken by the grant applicant.
  Upon receipt of a grant application requiring employee protective arrangements, the FTA Regional Office will transmit the application to DOL and request certification of the employee protective arrangements.
  In accordance with DOL guidelines, (57) DOL notifies the relevant unions in the area of the project that a grant for transit assistance is pending and affords the grant applicant and union the opportunity to agree to an arrangement establishing the terms and conditions of the employee protections.
  If an appropriate protective arrangement already exists from a previous grant, DOL proposes certification on that arrangement, and new negotiations begin only if a party to the arrangement objects to the proposed certification. If necessary, DOL furnishes technical and mediation assistance to the parties during their negotiations. The Secretary of Labor may determine the protections to be certified if the parties do not reach an agreement after good-faith bargaining and mediation efforts have been exhausted. DOL will also set the protective conditions when affected transit employees are not represented by a union.
  When DOL determines that an agreed-to employee protective arrangement complies with 49 C.F.R. § 5333(b), or when the Secretary of Labor determines the protections to be applied, DOL will provide a certification to FTA. The grant agreement between FTA and the grant applicant incorporates by reference the employee protective arrangements certified by DOL.
  Questions concerning employee protective arrangements and related matters pertaining to transit employees should be addressed to the Office of the American Workplace, Statutory Programs, Department of Labor, 200 Constitution Avenue, N.W., Room N-5411, Washington, D.C. 20210; telephone (202) 219-4473, fax (202) 219-5338.
TRANSPORTATION OF THE ELDERLY AND PERSONS WITH DISABILITIES. Congress has expressed the national policy that the elderly and persons with disabilities have the same right as others to use transit facilities and services. (58) Any project receiving Federal assistance must comply with this policy. Recipients of Capital Program assistance must take measures to ensure that the elderly and persons with disabilities will be able to use the project facilities and equipment. A discussion of how FTA carries out these requirements appears below in paragraph 15f, in which requirements pertaining to nondiscrimination are addressed.
NONDISCRIMINATION--CIVIL RIGHTS REQUIREMENTS. (59)
1. General. It is the responsibility of FTA to ensure that grantees are in compliance with all civil rights program requirements that apply to transit-related projects. The applicable civil rights program areas are: Title VI of the Civil Rights Act of 1964, as amended (Service Delivery/Benefits); Equal Employment Opportunity (EEO); Disadvantaged Business Enterprise (DBE); and Americans with Disabilities Program (Section 504/ADA).
  All required civil rights program submissions must be approved by FTA and periodically updated, in accordance with program guidelines. To avoid any delay in the grant application approval process, early submission of these program elements to the appropriate Regional Office is recommended.
2. Nondiscrimination. FTA is required by 49 U.S.C. § 5332(c) to take affirmative action to assure that no person on the basis of race, color, creed, national origin, sex or age, shall be excluded from participation in, be denied the benefits of, or be subject to discrimination under any project, program, or activity funded in whole or in part by FTA.
  The nondiscrimination provisions of 49 U.S.C. § 5332 apply to employment and business opportunities and impose additional requirements to those provisions of Title VI of the Civil Rights Act of 1964, as amended, which prohibits discrimination in transit service and benefits.
3. Title VI (Service Delivery and Benefits). Each grant applicant or grantee requesting Federal financial assistance authorized under the Capital Program (and under Federal Aid to Urban Systems (FAUS) and Interstate Transfer Programs and other "intermodal" projects authorized by the ISTEA) must submit a Title VI program that addresses requirements enumerated in FTA Circular 4702.1, "Title VI Program Guidelines for Federal Transit Administration Recipients." In this program, a grant applicant or grantee assures FTA that transit services and benefits obtained with FTA assistance will be provided in a nondiscriminatory manner, without regard to race, color, or national origin. Further, in accordance with 49 U.S.C. § 5332, there should be no discrimination on the basis of creed, age, or sex.
  For first-time grant applicants for Capital Program assistance, such entities, if located in areas with a population of 200,000 or less, are only required to submit information relating to "General Reporting Requirements" of FTA Circular 4702.1. This information relates to active lawsuits or complaints, pending grant applications with other Federal agencies, the submittal of the DOT Title VI and FTA civil rights assurances, and the impact of transit projects on minority communities. For first-time grant applicants in areas of more than 200,000, such entities must submit not only "General Reporting Requirements" but program-specific information such as maps/overlays showing bus routes and distribution of minority persons by census tracts, policy standards relating to bus assignments, headways, etc. This information assists FTA to assure service and benefits are provided on a non-discriminatory basis consistent with Title VI.
  After an initial Title VI program has been approved, an update is required every three years. A grant applicant contemplating submitting a grant application should ensure that its latest submission remains current.
  Nondiscrimination requirements cover such areas as: land acquisition and relocation of residences and businesses, impacts of fixed facility sites, placement of routes, vehicle assignments, availability of transit amenities such as bus shelters, headways, passenger loads, and multilingual personnel and literature.
  If a grant applicant is planning the construction of a large FTA-assisted project such as a multimodal transportation facility or a light rail system, prior to submitting a grant application for assistance, the applicant should be taking steps to ensure compliance with Title VI and 49 U.S.C. § 5332. Such steps should include: informing all communities of public hearings or meetings regarding such a project; providing an opportunity for interested persons to be considered for selection to decisionmaking transit boards and advisory committees; and ensuring that input on a facility's accessibility and location will be obtained and decisions will be made without regard to race, color, creed, national origin, age, or sex.
  Each grant applicant must certify annually that it is in compliance with nondiscrimination requirements of Title VI. Standard language for that assurance appears in Category I item F of Appendix C.
4. Equal Employment Opportunity. A grantee with 50 or more employees that has received $l million or more in the previous Federal fiscal year must submit an EEO program to FTA. The specific components of this program may be found in FTA Circular 4704.1, "Equal Employment Opportunity Program Guidelines for Grant Recipients." In this program, grantees implement steps to ensure equal opportunity for employees and job applicants, without regard to race, color, creed, national origin, sex, age, or disability. A major focus of this program is the grantee's conducting an analysis of its work force to identify job categories and levels of employment in which minorities and women are underrepresented and, with the identification of those categories and levels, taking corrective action.
  After an original EEO program has been approved, an update must be submitted every three years. An organization contemplating submitting a grant application should ensure that its latest EEO program update remains current.
5. Disadvantaged Business Enterprise. Pursuant to Department of Transportation requirements, a grantee must assure the Department that disadvantaged business enterprises (DBEs) (including those owned by women) are provided the maximum opportunity to compete for FTA-assisted contracts and participate in FTA-assisted projects. Section 1003(b) of the ISTEA requires that not less than 10 percent of the funds authorized by Congress for transit be expended with DBEs. Accordingly, if a grantee receives $250,000 or more in FTA capital and/or operating assistance in a year (excluding funds for the purchase of transit vehicles), the grantee must submit an annual DBE goal to FTA for approval.
  In addition, the grantee must submit a DBE program indicating actions that will be taken to achieve this goal. Components that must be included in the DBE program are enumerated in FTA Circular 4716.1A, "FTA Disadvantaged Business Enterprise Requirements for Recipients and Transit Vehicle Manufacturers." After it receives FTA approval, the DBE program remains in effect until there are major changes.
  The grantee must submit its annual DBE goal to the FTA Regional Office 60 days before the beginning of each Federal fiscal year (60 days before October 1), and the goal must be approved before FTA may award a grant.
6. Transportation of Persons with Disabilities. Compliance with the Americans with Disabilities Act of 1990 (ADA) (60) and Section 504 of the Rehabillitation Act of 1973, as amended, (61) are eligibility requirements for Federal financial assistance. Section 504 prohibits discrimination on the basis of handicap by recipients of Federal financial assistance. In addition, the ADA and DOT's implementing regulations at 49 C.F.R. Parts 27, 37, and 38, prohibit discrimination against individuals with disabilities in the provision of transportation service.
  The ADA requires that all new, used, and remanufactured vehicles acquired to provide fixed-route service be accessible to persons with disabilities, including persons who use wheelchairs. Rebuilt vehicles must be made accessible to the maximum extent feasible. New, used, or remanufactured vehicles acquired to provide demand responsive service must be accessible unless the operator can provide equivalent service to persons with disabilities.
  The ADA also requires public entities operating fixed-route systems to provide complementary paratransit service for persons with disabilities who cannot use the fixed-route system. A plan describing the steps necessary to achieve compliance with the ADA paratransit requirements must have been submitted to the FTA for review by January 26, 1992, and updates must be submitted annually to FTA on January 26 of each succeeding year through 1997.
  Although commuter bus service and commuter rail systems are subject to the same vehicle acquisition requirements as fixed-route systems, they do not need to provide paratransit service.
  New facilities, including bus stops, must be made readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. Existing facilities or parts of an existing facility, if altered, must be made accessible to the maximum extent feasible.
  Category I, Item G in Appendix C provides standard language for the ADA assurances.
BUY AMERICA.
1. Basic Requirement. In accordance with 49 U.S.C. § 5323(j), and FTA Buy America regulations, 49 C.F.R. Part 661, specific Buy America requirements apply to each acquisition of iron, steel, or manufactured goods, including rolling stock. Thus unless an acquisition qualifies for a waiver as discussed further in this section, Federal transit assistance authorized by 49 U.S.C. chapter 53 (62) and 23 U.S.C. (Highways) may not be used to finance the acquisition of iron, steel, or manufactured goods that are not produced in the United States.
2. General Buy America Requirements Contrasted with Special Requirements for Rolling Stock. The grant applicant should be aware that FTA's Buy America requirements for steel, iron, and manufactured goods other than rolling stock differ substantially from FTA's Buy America requirements for rolling stock. In particular, FTA assistance may not be used to finance the procurement of steel, iron, or manufactured goods other than rolling stock, unless the steel, iron, or those manufactured goods either qualify as a domestic product in accordance with 49 C.F.R. § 661.5, or FTA has granted a waiver in accordance with the Buy America regulations.
  In contrast, rolling stock qualifies as a domestic product when: (1) the cost of its domestic (United States) components exceeds 60 percent of the cost of all its components, and (2) final assembly takes place in the United States. Rolling stock meeting the 60 percent domestic component cost and final assembly requirements of 49 U.S.C. § 5323(j)(2)(C) has qualified for the specific rolling stock waiver authorized by 49 C.F.R. § 661.11(z), and there is no need to apply to FTA for this waiver.
3. Waivers. The statute establishing FTA's Buy America requirements (63) permits FTA to issue waivers in the public interest, or when U.S. products are not available, and for price differentials of at least 25% between the U.S. and foreign product. The statute also authorizes rolling stock to qualify as a domestic product when its domestic component and subcomponent costs exceed 60 percent of the total component and subcomponent costs, and final assembly take place in the United States.
  Absent a specific waiver for a specific product within FTA's Buy America regulations, a grant applicant must apply for and receive a waiver from FTA for each foreign acquisition of iron, steel, or manufactured good it intends to acquire. However, the grant applicant need not apply to FTA for a waiver to acquire rolling stock with domestic component and subcomponent costs exceeding 60 percent of the total component and subcomponent costs and final assembly taking place in the United States. Nor must an applicant apply to FTA for a waiver to acquire equipment listed in Appendix A to 49 C.F.R. § 661.7.
4. Waiver for Small Purchases. FTA issued a general-interest waiver (60 Fed. Reg. 37930) (64) on July 24, 1995, to exempt from its Buy America requirements all purchases made with FTA financial assistance, including capital, planning, and operating assistance, where the cost of the purchase is $100,000 or less. The exemption is based on the total cost of the purchase and not on individual items being purchased. Thus, if a grantee purchased, for example, 10 items costing $15,000 each under a single purchase order, and the total purchase order cost $150,000, the purchase would not be exempt from the Buy America requirements.
5. Regional Offices Available to Assist. It is often helpful to review the preambles as well as the text of the Buy America regulations. FTA recognizes that its Buy America regulations (including the preambles) do not address each issue that may arise in the course of a specific acquisition. It is not unusual for an acquisition to involve specific circumstances requiring individual interpretations of the regulations. For these reasons, Buy America questions or issues should be routinely submitted to the appropriate Regional Office.
DRUG AND ALCOHOL TESTING. In the interest of safety of mass transit operations, a recipient of Capital Program funding is required by 49 U.S.C. § 5331 to establish programs designed to help prevent accidents and injuries resulting from misuse of alcohol or prohibited drugs by employees who perform safety-sensitive functions and to certify annually that it is in compliance with two FTA regulations concerning drug use and alcohol misuse. Compliance with the regulations is a condition of FTA funding. Where applicable as discussed below, recipients of FTA funding are required to certify to Federal Railroad Administration (FRA) regulations and to Federal Highway Administration (FHWA) regulations concerning drug and alcohol programs.
To assure compliance with the drug and alcohol testing requirements, FTA has promulgated two regulations, "Prevention of Prohibited Drug Use in Transit Operations" (65) and "Prevention of Alcohol Misuse in Transit Operations." (66) The regulations apply to recipients of funds under the Capital Program, as well as to recipients under the Urbanized Area Formula Program, (67) the Nonurbanized Area Formula Program, (68) and the interstate program. (69) Both regulations require that FTA recipients follow the drug and alcohol testing procedures found in DOT regulations. (70)
The regulations apply to "employers," and the term employer is defined as "a recipient [of FTA funding] or other entity that provides mass transportation service or which performs a safety-sensitive function for such recipient or other entity." The term includes subrecipients, operators, and contractors. The direct recipient of FTA funding, however, remains responsible to FTA both for carrying out the regulations and for ensuring that any person or organization performing a safety-sensitive function on its behalf is in compliance with the FTA regulations.
Large operators (generally those operating primarily in urbanized areas with populations of 200,000 or more) were required to initially certify and begin the alcohol and drug testing programs by January 1, 1995. States and small operators (generally those operating primarily in areas with populations less than 200,000) must initially certify and begin the testing programs by January 1, 1996. States must annually certify on behalf of their subrecipients. Standard language for certification of compliance with the regulations appears in Category IX and Category XIII, item M in Appendix C.
The FTA regulations do not apply to a recipient that operates a commuter railroad; a commuter railroad operator must comply with FRA regulations (71) with regard to its hours of service employees. An FTA recipient that operates a commuter railroad must comply with regulations of the FHWA for its employees who hold commercial drivers licenses. (72) A recipient that operates a ferry service must comply with FTA's rules and those of the Coast Guard. (73)
The rules require testing of employees who perform a safety-sensitive function, which is defined in the rules. The rules require the following six types of testing: pre-employment, including (for drugs, transfer from a non-safety-sensitive position to a safety-sensitive position); reasonable suspicion; random; post-accident; return-to-duty; and follow-up.
Both rules require each employer to establish and implement a substance abuse prevention program consisting primarily of a testing program but with elements requiring training, educating, and evaluating safety-sensitive employees. Both rules require the development of a detailed policy statement that must be distributed to all safety-sensitive employees and employee organizations. In addition, the alcohol rule establishes alcohol concentration levels, and employers are directed to take specific action on the basis of the level of alcohol concentration.
Technical assistance materials and training information to help grantees implement the rules are available through the FTA Office of Safety and Security, FTA Headquarters, 400 7th Street, S.W., Washington, D.C., 20590.
DRUG-FREE WORKPLACE. Each grantee is required to maintain a drug-free workplace for all employees and to have an anti-drug policy and awareness program. The grant applicant must certify to the FTA that it will provide a drug-free workplace and comply with all requirements of the Drug-Free Workplace Act of 1988 (74) and U.S. DOT's implementing regulations. (75)
The grantee is required to provide a written Drug-Free Workplace policy statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and stating specific actions that will be taken for violations.
The ongoing drug-free awareness program must inform employees about the dangers of drug abuse; about any available drug counseling, rehabilitation, and employee assistance programs; about penalties that may be imposed; and that employees are to be aware that the recipient operates a drug-free workplace.
An employee of an FTA grantee is required to report in writing any conviction for a violation of a criminal drug statute occurring in the workplace, and the grantee/employer is required to provide written notice to FTA within 10 days of having received the notice. Within 30 days of receiving the notice of a conviction, the grantee/employer must have taken appropriate action against the employee or have required participation in a drug abuse assistance or rehabilitation program.
Category I, Item D in Appendix C provides standard certification language pertaining to the grant applicant's drug-free workplace requirements.
LOBBYING. A certification and, when appropriate, a completed disclosure form must be submitted by the grant applicant in accordance with 31 U.S.C. § 1352, "Limitation on use of appropriated funds to influence certain Federal contracting and financial transactions," and U.S. DOT implementing regulations, "New Restrictions on Lobbying." (76) Section 1352 requires that all persons (meaning organizations as well as individuals) that request or receive Federal contracts, grants, or cooperative agreements exceeding $100,000, or loans, loan guarantees, or insured loans exceeding $150,000, submit a certification that Federal appropriated funds were not used to influence or attempt to influence the transactions. Standard language for the certification appears in Appendix C, Item II.
Grantees and contractors are required to disclose certain lobbying activities conducted with funds derived from other than Federal sources. If anyone is hired to lobby on behalf of the potential recipient requesting the Federal funds, Section 1352 requires that a disclosure statement, Standard Form LLL, be completed naming the lobbyists and the amounts paid to them. These requirements also apply to subgrantees and subcontractors. A copy of Standard Form LLL appears in Chapter IX as "Lobbying-Disclosure."
Lobbying is not prohibited by Section 1352. Using federally appropriated funds to pay for lobbying is prohibited. Disclosure is not required for the lobbying activities of long-term regularly employed officers or employees of grantees (that is, persons employed at least 130 working days within 1 year immediately preceding the date the grant application is submitted). Only the activities of hired lobbyists and newly hired officers and employees must be disclosed.
Activities such as submitting grant applications, status inquiries, and professional and technical services are not lobbying and do not need to be disclosed. Efforts to influence Federal officials about specific grants and contracts or to ask Congressional representatives for support of a particular application or bid must be disclosed.
A state applying for a grant on behalf of several subgrantees must keep on file the certifications of the subgrantees.
Disclosure forms, if appropriate, must be submitted when the grant applicant makes its first grant application. Additionally, disclosure forms are required each calendar quarter following the first disclosure if there has been a material change in the status of the previous disclosure. A material change is defined in the following way:
1. a cumulative increase of $25,000 or more in the amount paid or expected to be paid for influencing or attempting to influence a covered Federal action; or
2. a change in the person(s) or individual(s) influencing or attempting to influence a covered Federal action; or
3. a change in the officer(s) or employee(s) or Member(s) contacted to influence or attempt to influence a covered Federal action.
INTEGRITY - DEBARMENT AND SUSPENSION. "In order to protect the public interest, it is the policy of the Federal Government to conduct business only with responsible persons." (77) Debarment and suspension are methods used to implement the policy. U.S. DOT has issued implementing regulations at 49 C.F.R. Part 29.
An applicant for FTA assistance is required to certify that it, through its "principals," is not excluded from federally assisted transactions and to ensure that none of its subrecipients, third-party contractors, or subcontractors are debarred, suspended, ineligible, or voluntarily excluded from participation in federally-assisted transactions. Please see Appendix C, Category I, Item C for standard certification language.
Disclosure to FTA is required if at any time the grantee or other "covered" entity learns the certification was erroneous when submitted or if circumstances have changed (e.g., new personnel, indictment, conviction).
SEISMIC DESIGN AND CONSTRUCTION STANDARDS. A grant applicant must assure FTA that any new building or addition to an existing building built with Federal assistance is designed and constructed in accordance with seismic safety standards. The grant applicant is responsible to know before accepting delivery that the building complies with seismic design and construction requirements and, in accordance with U.S. DOT implementing regulations, "Seismic Safety," (78) must assure FTA that it will obtain a certificate of compliance with the requirements. A grant applicant makes this assurance through the FTA annual certification process; see Category X, Item C in Appendix C.
REQUIREMENTS CONCERNING PROJECT ACTIVITIES IN ADVANCE OF FEDERAL FUNDS. There are three mechanisms FTA uses that allow a grant applicant to incur project costs without first receiving formal FTA project approval. By means of these mechanisms a grant applicant may spend local funds for project activities and be reimbursed by FTA if and when a project is approved. The three are discussed below.
It is important to note that a grant applicant with the requisite authority to proceed with project activities must take care to avoid prejudicing the legal and administrative findings FTA must make before approving financial assistance. That is, the grant applicant must comply with all applicable Federal statutory, procedural, and contractual requirements in carrying out its project, in order for FTA to later be able to provide financial assistance for the project.
1. Blanket Authority Under Formula Programs to Incur Pre-award Costs. In fiscal year 1994, FTA announced it would allow limited authority to recipients receiving funds allocated by formula to incur costs for eligible projects prior to actual grant award. The authority was provided to recipients of apportioned funds contained in the FTA apportionment notice (please see Chapter IV, paragraph 1b, "Apportionments Schedule") and included prior year carryover amounts. Recipients of the formula-based fixed guideway modernization allocation of the Capital Program were among those permitted the blanket authority.
  In fiscal year 1995, the pre-award authority was extended to projects intended to be funded with STP and CMAQ flexible funds if a project was included in an STIP (see Chapter III, paragraph 2a regarding flexible funds). The period of time for such authority is now extended to FTA funds and to flexible funds apportioned through fiscal year 1997. Carryover amounts for the programs so identified were also included in this pre-award spending authority.
  The authority did not extend to new starts or bus projects of the Capital Program, but only to fixed guideway modernization funds.
  FTA specified the following conditions under which the blanket pre-award authority may be used:
  1. This pre-award authority is not a legal or moral commitment that the project(s) will be approved for FTA assistance or that the FTA will obligate Federal funds. Further, it is not a legal or moral commitment that all items undertaken by the grant applicant will be eligible for inclusion in the project(s).
  2. All FTA statutory, procedural, and contractual requirements must be met.
  3. No action will be taken by the grant applicant which prejudices the legal and administrative findings that the Federal Transit Administrator must make in order to approve a project.
  4. Local funds expended by the grant applicant pursuant to and after the date of this authority will be eligible for credit toward local match or reimbursement if the FTA later makes a grant for the project(s) or project amendment(s).
  5. The Federal amount of any future FTA assistance to the grantee for the project will be determined on the basis of the overall scope of activities and the prevailing statutory provisions with respect to the Federal-local match ratio at the time the funds are obligated.
2. Letter of No Prejudice. For a project not covered by the blanket pre-award authority, including all Capital Program bus and new start projects, a grant applicant that seeks to proceed with a transit project in advance of the availability of Federal funds may request FTA to issue a Letter of No Prejudice (LONP) for that project. An LONP permits a grant applicant to incur costs on a project using non-Federal resources with the understanding that the costs incurred after the LONP is issued may be reimbursable as eligible expenses or eligible for credit toward local matching share if the project should be approved at a later date. Each LONP has an expiration date. It is the date beyond which funding cannot be requested retroactively for the project. The period covered by an LONP generally does not exceed two years. The conditions under which LONP authority may be used are the same as those listed by FTA in announcing the blanket pre-award authority as described in the paragraph above.
3. Advance Capital Project Authority. A grant applicant that seeks to proceed with a transit project before Federal funds become available may request advance capital project authority, formerly referred to as advance construction authority. Advance capital project authority (79) permits a grant applicant to incur project and financing (e.g., bond interest) costs before FTA awards a grant for the project and reserve the right to be reimbursed afterFTA has approved the project. Advance capital project authority may be issued for Capital Program (80) grants and Urbanized Area Formula Program (81) grants and for grants under the interstate substitute transit program. (82)
  Advance capital project authority may be approved provided that the project is carried out in accordance with all applicable Federal procedures and requirements. A grant application must be on file and all grant application requirements for FTA must have been met, including receipt of a labor protection certification from the Department of Labor. This requirement for prior approval of an application and the eligibility of financing costs for reimbursement are two important differences from the blanket authority of paragraph 22a above and the LONP of paragraph 22b.
  Advance construction authority is limited to major projects such as large bus buys and facility construction projects that would require funding for more than a single year. Advance construction authority does not constitute a commitment of Federal funds until the project is converted to a regularly financed FTA project. The grant applicant should make contact with the appropriate Regional Office for specific instructions in applying for advance construction authority.
LEASE VS. BUY CONSIDERATIONS. A grant applicant may use Capital Program funds to lease capital assets from another party, where justified. To qualify a lease for Capital Program assistance, a grant applicant must: make a written comparison of the cost of leasing the asset with the cost of purchasing or constructing it, and include the cost-effectiveness justification in its grant application. It is important to note that a recipient of Capital Program funds may not enter into a lease before grant approval without express authority from FTA. The general requirements and principles of FTA regulations, "Capital Leases," (83) (which are directed to the Urbanized Area Formula Program) apply to the Capital Program. Obtaining an asset by lease is more cost-effective than purchase or construction when the lease cost is less than the purchase cost, as calculated in the manner described in the regulations. (84)

Chapter Notes:

formerly Section 3 of the Federal Transit Act, as amended ("the Act")
49 U.S.C. § 5301(d), formerly Section 16(a) of the Act
49 U.S.C. § 5309, formerly Section 3
49 U.S.C. § 5307, formerly Section 9
49 U.S.C. § § 5303 - 5306, formerly Section 8
formerly the Federal Transit Act, as amended, and related laws
formerly Section 3
formerly the Federal Transit Act, as amended, and related laws
formerly Section 3(a)(2)(A)
formerly Section 3
formerly Section 9
formerly Section 9
formerly Section 9 funds
49 U.S.C. § 5307(d)(1)
49 U.S.C. § 5307( (i)(2), formerly Section 9(g)(2) and 9(g)(3)
listed in 49 U.S.C. 5309(d), formerly Section 3(a)(2)(A)
49 U.S.C. § 5309, formerly Section 3
formerly Section 9
49 U.S.C. § 5323(h)(2), formerly Section 3(a)(2)(C)
49 U.S.C. § 5325, formerly Section 12(b) (1)-(4).
49 C.F.R. Part 18
formerly Section 3(d)
49 U.S.C. § 5324(b)(2), also formerly in Section 3(d)
23 C.F.R. Part 771
formerly Section 3(d)
23 CFR Part 450
49 U.S.C. § 5324(b)(3)(A)(iii), formerly Section 14
at 49 U.S.C. § 5324(b)(2)
42 U.S.C. § § 4321 et seq.
49 U.S.C. § 303
16 U.S.C. § 470f
33 U.S.C. § 1344
42 U.S.C. § 7506
23 C.F.R. Part 771
23 C.F.R. Part 450 and 49 C.F.R. Part 613
49 U.S.C. § 5306(a), formerly Section 8(o)
49 U.S.C. § 5323(a)(1)(B), formerly Section 3(e)
49 U.S.C. § 5303(f)(4), formerly Section 8(g)(4)
23 C.F.R. § 450.322(c)
59 Fed. Reg. 21890 (1994)
49 U.S.C. § § 5303 - 5306, formerly Section 8
49 U.S.C. § 5307, formerly Section 9
formerly the Federal Transit Act, as amended, and related laws
49 U.S.C. § 5306(a), formerly Section 8(o)
49 U.S.C. § 5323(a)(1)(C), formerly Section 3(e)(3)
42 U.S.C. § § 4601 et seq.
49 C.F.R. Part 24
formerly Section 7
42 U.S.C. § § 4601 et seq.
49 C.F.R. Part 24
49 C.F.R. Part 24
49 U.S.C. § 5323(l), formerly Section12(j)
49 C.F.R. Part 663
49 U.S.C. § 5333(a), formerly Section 13(a)
formerly the Federal Transit Act, as amended, and related laws
49 U.S.C. § 5333(b), formerly Section 13(c)
29 C.F.R. Part 215
49 U.S.C. § 5301(d), formerly Section 16(a)
49 U.S.C. § 5332, formerly Section 19
42 U.S.C. § § 1201 et seq.
29 U.S.C. § 794
formerly the Federal Transit Act, as amended, and related laws
49 U.S.C. § 5323(j)
to be codified at 49 C.F.R. Part 661
to be codified at 49 C.F.R. Part 653
to be codified at 49 C.F.R. Part 654
49 U.S.C. § 5307, formerly Section 9
49 U.S.C. § 5311, formerly Section 18
Section 103(e)(4) of Title 23
49 C.F.R. Part 40
49 C.F.R. Part 219
49 C.F.R. Part 382
33 C.F.R. Part 95 and 46 C.F.R. Parts 4, 5, and 16
41 U.S.C. 701 et seq.
49 C.F.R. Part 29, Subpart F
49 C.F.R. Part 20
49 C.F.R. 29.115(a)
49 C.F.R. Part 41
pursuant to 49 U.S.C. § 5309(n), formerly Section 3(l)
formerly Section 3
formerly Section 9
23 U.S.C. § 103(e)(4)
49 C.F.R. Part 639
49 C.F.R 639.25 and 639.23

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CHAPTER VII - GRANT APPLICATION CONTENTS
TABLE OF CONTENTS

APPLICATION CHECKLIST
APPLICATION PACKAGE
FTA ASSISTANCE
STANDARD FORM 424
PROJECT BUDGET
PROJECT DESCRIPTION, JUSTIFICATION/PLANNING CONSISTENCY
MASTER AGREEMENT
INDEX OF THIS CIRCULAR

CHAPTER VII
GRANT APPLICATION CONTENTS

APPLICATION CHECKLIST. This chapter contains a checklist that may be used by the grant applicant when preparing a grant application for FTA Capital Program (formerly Section 3) assistance. The checklist contains two parts.
1. Part I, Application Contents, is a list of items that FTA expects to receive with each application, with one exception: the transmittal letter is not a required item. Grant applicants often use a transmittal letter to describe briefly the grant request and to include information concerning significant or unusual aspects of the grant request.
2. Part II, Approval Prerequisites, contains items that, if not in the grant application, should already be on file with FTA and must be current.
In addition to the items listed, FTA reserves the right to request additional documents specific to the grant application.
APPLICATION PACKAGE. An original and two copies of the grant application must be submitted to the geographically appropriate FTA Regional Office. Regional Offices and the states and territories they serve are listed in Chapter X. The Regional Office will forward two copies of the grant application to the Department of Labor for certification of transit employee protective arrangements (formerly Section 13(c) certification).
FTA ASSISTANCE. One of FTA's major responsibilities is to provide assistance to grant applicants in preparing their grant applications. Telephone numbers for Regional Offices are available in Chapter X. Copies of specific laws, regulations, Federal Register notices, and Executive Orders from which the grant application requirements derive can be obtained from the Regional Offices.
STANDARD FORM 424. Office of Management and Budget Standard Form 424 (revised April 1988) entitled "Application for Federal Assistance" should be completed in its entirety and signed by the grant applicant's authorized representative. A copy of SF 424 appears as an example in Chapter IX. This form may be duplicated; also, the form is available from FTA Regional Offices.
PROJECT BUDGET. FTA uses the same budget format for all grant programs it administers. Chapter VIII contains information and exhibits for preparing a Capital Program budget and provides an example of an approved project budget (EXHIBIT VIII-6, Budget). Grant applicants are asked to provide details of proposed capital purchases according to the activity line item codes contained in EXHIBIT VIII-9, Budget Activity Codes.
PROJECT DESCRIPTION, JUSTIFICATION/ PLANNING CONSISTENCY. The grant applicant should describe all projects and activities in the application in sufficient detail for FTA to determine that the grant request is eligible for funding. The grant applicant should briefly summarize the justification for each project, drawing, in particular, from the transportation plan, TIP, STIP, or environmental document. Each project and activity in the grant application should be addressed.
MASTER AGREEMENT. On the first day of Fiscal Year 1995, October 1, 1994, FTA started using a new abbreviated grant agreement that incorporates by reference in a Master Agreement most terms and conditions applicable to the FTA project for which a grant has been awarded. Each grantee is expected to retain the Master Agreement on file. Copies are available in the FTA Regional Offices. A grant applicant that does not have a copy of the Master Agreement on file should request a copy from the appropriate Regional Office.
INDEX OF THIS CIRCULAR. Items listed in EXHIBIT VII-1, Checklist for Grant Applicant, have been discussed in various paragraphs of this circular. An index to topics in the circular and their location forms the circular's final pages.

EXHIBIT VII-1

CHECKLIST FOR GRANT APPLICANT

Application Contents (to be submitted as part of grant application). Submit an original and 2 copies for DOL labor protection certification.
1. Transmittal letter
2. SF-424 Application for Federal Assistance
  (see Example "Application" in Chapter IX)
  Box 17 noted because frequently overlooked
3. Project Budget
4. Project Description
5. Project Justification (1) /Supporting documentation as necessary
6. Milestone Schedule
  (see Example "Project" in Chapter IX)
7. Project Financing/Local Share Commitment (source and amount of funding identified)
8. Labor Union Description(s) (including information about earlier DOL certifications that may apply to this project)
9. Environmental Review
  1. Date of FTA's signing of FONSI, or
  2. Date of FTA's signing of ROD, or
  3. Grant applicant's CE recommendation if neither a nor b above applies
10. Air Quality
  1. Date of project level conformity determination by FTA, or
  2. Applicant's recommendation concerning project's category of exemption
11. Transcript for public hearing, if held (for projects that substantially affect community or transit services)
12. STIP - Date of Approval by FTA (please provide projects' page numbers)
13. Request for copy of Master Agreement, if applicant does not have one on file.
14. Information confirming that urbanized area formula funds are programmed (i.e., are in an approved STIP)
Approval Prerequisites (on file with FTA, or to be submitted with application and updated as appropriate)
1. Opinion of Counsel
2. Authorizing Resolution
3. Information supporting financial capacity, technical capacity, satisfactory continuing control, maintenance capability)
4. Any outstanding oversight findings resolved or resolution plan and schedule set
5. Current annual Certification and Assurances. Grant activities in the application are covered by the Certifications and Assurances (that is, for example, if project includes acquiring real estate, then certification on real property has been made).
6. Civil rights submissions up-to-date
  1. Title VI
  2. Annual DBE Goal
  3. DBE Program
  4. EEO Program
  5. ADA

Chapter Notes:

Brief summary of planning and environmental justifications for project.

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CHAPTER VIII - INSTRUCTIONS FOR PREPARING A PROJECT BUDGET
TABLE OF CONTENTS

BACKGROUND
OVERVIEW OF PROJECT BUDGET DOCUMENT
PREPARING A PROJECT BUDGET
1. Scope and Activity Levels
2. Subrecipient Information

CHAPTER VIII
INSTRUCTIONS FOR PREPARING A PROJECT BUDGET

BACKGROUND. FTA has developed a single budget document that can be used for each of the FTA programs. A sample of an "Approved Project Budget," included as EXHIBIT VIII-6, shows the manner in which FTA transmits funding information to the grantee. A blank copy of the project budget form is included at the end of this chapter as EXHIBIT VIII-8. An applicant should prepare the project budget in this form when preparing a grant application and a request for budget revision.
Chapter VIII provides information about the items that appear on an Approved Project Budget and gives assistance for preparing a project budget. Within a grant, there are often groups of activities related logically to each other; a group of related activities is called a project. Several projects form an overall program. The purpose of a group of activities is referred to as the scope of the group--that is, the scope of the project. Thus, a grant program may have several scopes.
FTA grant management decisions regarding whether a budget revision can be made versus whether a grant amendment is necessary depend in large measure on the effect of the proposed change on the scope of the project. The activity level is used as information to assist in the decision.
OVERVIEW OF PROJECT BUDGET DOCUMENT. Referring to the sample of an Approved Project Budget (EXHIBIT VIII-6), note the Approval Date in the upper left corner. This date will be affixed by FTA when the contents of the budget are formally approved. Also, the FTA-designated project number appears in the upper left, MD-03-0046-00. The first two letters, MD, indicate the state in which the grant is located; the next two digits, 03, indicate that the grant is funded under the Capital Program, and the next four digits, 0046, indicate the sequence number of Capital Program grants awarded within the state. The final two digits, 00, indicate this is the first increment of funding for the grant. Budget No.: 01 indicates this is the first approved budget for the grant.
Next, the scope of work (e.g., 111-01 Bus - Rolling Stock) is defined. Each scope is followed by the specific details (activities) of how the scope will be accomplished (e.g., 11.13.03, Purchase 30-foot buses for expansion of service).
The final section of the budget form, Sources of Federal Financial Assistance, outlines by urbanized area how funding for the grant has been obligated by FTA. If a grant is being funded for the first time, no dollar amounts will appear in the Previously Approved column. This column is used only when a grant is being amended, to reflect the original amount of a grant. Since FTA's grants database is designed to store grant information in the context of "amendments," beginning with amendment "00," even the initial increment of funding for a grant is designated in the next column, the Amendment Amount column. The Amendment Amount column will be the same as the amount that appears in the Total column, if no additional funds are being added to the budget.

PREPARING A PROJECT BUDGET. The grant applicant should complete a project budget following the format provided, through the line, "Local Share." FTA will complete the information under the heading, "Sources of Federal Financial Assistance."

Scope and Activity Levels. The numbering of both the scope and activity levels of information on the Approved Project Budget is derived from the activity codes in the FTA Grants Management Information System (GMIS). A separate listing of scope level codes forms EXHIBIT VIII-7. A five-paged chart showing the activity codes forms EXHIBIT VIII-9.(1) In most cases, the first three digits of the scope code will match the first three digits of its corresponding activities. For example, if a grant applicant wishes to purchase revenue rolling stock, the scope might be defined in the following way:

EXHIBIT VIII-1

Project Scope - Sample No. 1

Scope

111-01 Bus- Rolling Stock

Quantity: 6

Activity

11.12.02 Purchase 35-foot replacement buses with lifts

Quantity: 4

11.13.03 Purchase 30-foot buses with lifts for service exoansion

Quantity: 2

11.12.40 Spare Parts

NOTE: The activity code chart applies to all FTA grant programs. Only the first two pages, and the alternative fue codes on page 5, apply to Capital Grant projects.

NOTE: Although quantities have been included in the examples, FTA requires that quantities only for rolling stock be included in the budget, and then only at the activity level. Rolling stock quantities are shown in the scope level in the examples because the GMIS automatically sums the rolling stock identified at the activity levels and prints the quantity at the scope level.

In the example above, a mix of rolling stock will be purchased, and the scope includes the purchase of associated items. If a grant applicant wishes to include radios and fareboxes as part of this purchase, radios and fareboxes could also be listed as part of the rolling stock scope. In such case, the quantities for the radios and fareboxes would not be included in the rolling stock total quantity under 111-01, but would be indicated in the activity level description. If a grant applicant proposes to purchase an entirely new fare collection system or radio communications system, the more appropriate classification might appear as follows:

EXHIBIT VIII-2

Project Scope - Sample No. 2

Scope

113-01 Bus- Purchase fare collection system
(NOTE: In this example the activity code description appropriate for this Scope Code, Bus - Stations/Stops/Terminal, has been overwritten in order to provide a more accurate description.)

Activity

11.32.06 Purchase coin sorter

11.32.20 Purchase miscellaneous stationary fare collection equipment

11.42.09 Purchase fareboxes

Quantity: 45

Scope

116-01 Bus Signal/Communications System

Activity

11.61.01 Design bus communications system

11.62.02 Purchase base stations

11.62.03 Purchase bus radios

Quantity: 50

11.42.09 Purchase mobile radios

Quantity: 20

As one can see from these examples, it is also possible to combine activities that are associated, but which do not necessarily match the first three digits of the scope code under which they appear.

A grant applicant that operates a fixed guideway system or that is engaged in a new start project will use scope level numbers that correspond to the rail and new start segments of the Activity Code Chart, e.g., scope code 121-01, 02...for Rail Rolling Stock or 131-01, 02...for New Start Rolling Stock; or 123-01, 02...for Rail Stations and 133-01, 02...for New Start Stations.

Subrecipient Information. The design of the project budget can also accommodate subrecipient information in cases where a recipient such as the state wishes to track each subrecipient's projects separately. In the following example, the recipient is purchasing rolling stock on behalf of two small operators:

EXHIBIT VIII-3

Presenting Subrecipient Information - Format Option No. 1

Scope

111-01 Purchase Rolling Stock and Related Equipment

Quantity: 7

Activity

11.12.03 Purchase small lift-equipped replacement buses for Allegany County

Quantity: 3

11.12.15 Purchase lift-equipped vans for Cumberland Transit System

Quantity: 4

11.12.40 Spare components for buses

11.42.10 Purchase of fareboxes for buses

Quantity: 3

11.62.03 Purchase of radios for vans

Quantity: 4

EXHIBIT VIII-4

Presenting Subrecipient Information - Format Option No. 2

Scope

111-01 Rolling Stock for Allegany County

Quantity: 3

Activity

11.12.03 Purchase small lift-equipped replacement buses for Allegany County

Quantity: 3

11.12.40 Spare components for buses

11.42.10 Purchase fareboxes for buses

Quantity: 3

Scope

111-02 Rolling Stock for Cumberland Transit System

Quantity: 4

Activity

11.12.15 Purchase lift-equipped vans for Cumberland Transit System

Quantity: 4

11.62.03 Purchase radios for vans

Quantity: 4

Under Format Option No. 1, FTA determinations regarding budget revisions and scope changes would be based on the quantity total of seven vehicles found at the scope level. Under Format Option No. 2, those determinations would be based on the specific scope level quantity for each of the subrecipients, i.e., quantities of three and four.

A grant applicant operating a larger system can also choose which of the two format options above best suit its internal management of projects. However, at a minimum, different scopes should be used to distinguish between rolling stock and facility activities and between rail and bus within each grouping. Furthermore, a grant applicant seeking Capital Program assistance to undertake a major capital project will be required to develop a budget based upon the baseline cost estimate and associated contract units reflected in the associated full funding grant agreement. It is necessary to clearly relate the scope and activities in the program-of-projects budget to the baseline cost estimate and related procurement actions. This can be accomplished by "rolling up" the costs of similar items (i.e., station construction) into one activity. The format for this budget is illustrated below:

EXHIBIT VIII-5

Combining Costs of Similar Items

SCOPE

132-01 Construct a 20-mile light rail line, including 20 stations and support facilities

Activities

13.23.03 Construction of line and structures

13.33.02 Construction of stations

13.43.02 Construction of operations/maintenance

13.53.01 Electrification and power distribution

13.63.01 Signals

13.33.06 Fare collection equipment acquisition and installation

13.75.91 Real estate acquisition

13.75.92 Relocation

SCOPE

137-01 Support services, in house and contracted, for engineering design, project and construction management, insurance, legal aid, etc.

Activities

13.71.02 Contracted final design services

13.71.04 Contracted construction management services

13.72.03 Grantee support services/project management

13.72.11 Other contracted support services

SCOPE

131-01 Purchase of Rolloing Stock

Activities

13.12.20 Purchase 50 light rail vehicles

EXHIBIT VIII-6

APPROVED PROJECT BUDGET

APPROVAL DATE: 6/09/95

GRANTEE: REGIONAL TRANSIT ADMINISTRATION
TRANSIT-TOWN, MARYLAND

PROJECT NO.: MD-03-0046-00 BUDGET NO.: 01

SCOPE FEDERAL AMOUNT TOTAL AMOUNT

111-01 BUS - ROLLING STOCK......
QUANTITY: 4 $450,750 $601,000

ACTIVITY

11.13.03 BUY 30-FT BUS FOR SERVICE EXPANSION
QUANTITY: 4 435,000 580,000

11.32.06 ACQ FARE COLLECTION EQUIPMENT
QUANTITY: 5 3,750 5,000

11.62.03 PURCHASE BUS RADIOS 30-FT BUSES
QUANTITY: 3 12,000 16,000

SCOPE

113-01 BUS - STATIONS/STOPS/TERMINAL 18,740 25,000

ACTIVITY

11.13.10 PURCHASE PASSENGER AMENITIES
QUANTITY: 5 18,750 25,000

TOTAL CAPITAL............. 469,500 626,000

TOTALS......... 469,500 626,000

ESTIMATED NET PROJECT COST 626,000

FEDERAL SHARE 469,500

LOCAL SHARE 156,500

SOURCES OF FEDERAL FINANCIAL ASSISTANCE

FUNDING UZA: 240149 FUNDING UZA NAME: Transit-Town, Md.

ACCOUNTING CLASSIFICATION FPC DESCRIPTION PREVIOUSLY APPROVED AMENDMENT AMOUNT TOTAL

95.37.03.31.2 00 FY 1995, §5309* CAPITAL $460,500 $469,500

* formerly Section 3

EXHIBIT VIII-7

SCOPE LEVEL CODES AND
SPECIAL USE ACTVITY CODES

These codes should be used in conjunction with the various actvity level codes included in EXHIBIT VIII-9. All scope level coes must have associated activity level codes attache to them. While the damples below desingate 00 as the last two digits, the applicant should begin with 01 and sequentially number each scope in each group.

The first three digits of these codes correspond to the major categorical heading located on the left side of the Activity Code Chart.

111-00 Bus - Rolling Stock

112-00 Bus- Transitways/Lines

113-00 Bus - Stations/Stops/Terminals

114-00 Bus - Support Equipment/Facilities

115-00 Bus - Electrification/Power Distribution

116-00 Bus - Signals/Communications Equipment

117-00
Bus - Other Capital Items

121-00 Rail - Rolling Stock

122-00 Rail - Transitways/Lines

123-00 Rail - Stations/Stops/Terminals

124-00 Rail - Support Equipment/Facilities

125-00 Rail - Electrification/Power Distribution

126-00 Rail - Signals/Communications Equipment

127-00
Rail - Other Capital Itmes

131-00 New Start - Rolling Stock

132-00 New Start - Transitways/Lines

133-00 New Start - Stations/Stops/Terminals

134-00 New Start - Support Equipment/Facilities

135-00 New Start - Electrification/Power Distribution

136-00 New Start - Signals/Communications Equipment

137-00
New Start - Other Capital Items

996-00 ADA/CAA - Non-add Scope

Project Budget

Activity Line Items (Page 1 of 5)

Activity Line Items (Page 2 of 5)

Activity Line Items (Page 3 of 5)

Activty Line Items (Page 4 of 5)

EXHIBIT VIII-9
Activity Line Items

GRANTS MANAGEMENT INFORMATION SYSTEM
ALTERNATIVE FUEL TYPE CODES
FOR BUS PURCHASES
DF	DIESEL FUEL
DP	DIESEL (PARTICULATE TRAP)
CN	COMPRESSED NATURAL GAS
LN	LIQUEFIED NATURAL GAS
LP	LIQUEFIED PERTROLEUM GAS
MT	METHANOL
ET	ETHANOL
EP	ELECTRIC PROPULSION
GA	GASOLINE
BF	BUNKER FUEL
OR	OTHER

Activity Line Items (Page 5 of 5)

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Chapter IX
Examples

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Application for Federal Assistance (SF 424)

Instructions for the SF 424

Return to Chapter 9 Table of Contents

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Disclosure of Lobbying Activites Form (SF-LLL)

Instructions for Completion of SF-LLL

Disclosure of Lobbying Activites Coninuation Sheet

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(GRANTEE)

PROJECT MILESTONE SCHEDULE (SAMPLE)

PROJECT NO.: XX-03-0162
MOST RECENT AMENDMENT NO.: N/A

TOTAL FTA SHARE: $3,300,000

MILESTONE SCHEDULE

Line Item Description Milestone Description Date

Purchase 10 30-ft buses Bids advertised Dec. 1993

Contract March 1994

First bus delivery, acceptance May 1994

Last bus delivery, accptance March 1995

Contract completed (Final payment made) May 1995

Renovate maintenance facility Bids advertised Jan. 1994

Contracted awarded March 1994

Construction to begin April 1994

Contract completed (Final payment made) Oct. 1994

Purchase/install communications equipment Bids advertised April 1995

Contract awarded June 1995

Contract completed Sept. 1995

Engineering design for new facility Request for proposals Jan. 1995

Contract awarded March 1995

Design completed June 1995

Contract closed (Final payment made) July 1995

CHAPTER X
REGIONAL OFFICES

REGION 1
Boston Transportation Systems Center
Kendall Square
55 Broadway, Suite 920
Cambridge, MA 02142-1093
Areas served: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut
Tel. No.
617-494-2055
Fax No.
617-494-2865

REGION 2
New York 26 Federal Plaza, Suite 2940
New York, NY 10278-0194
Areas served: New York, New Jersey, and U.S. Virgin Islands
Tel. No.
212-264-8162
Fax No.
212-264-8973

REGION 3
Philadelphia 1760 Market Street
Suite 500
Philadelphia, PA 19103-4124
Areas served: Pennsylvania, Virginia, West Virginia, Delaware, Maryland, and District of Columbia
Tel. No.
215-656-6900
Fax No.
215-656-7260

REGION 4
Atlanta 1720 Peachtree Road, NW
Suite 400
Atlanta, GA 30309-2439
Areas served: North Carolina, Kentucky, Tennessee, South Carolina, Alabama, Georgia, Florida, Missippi, and Puerto Rico
Tel. No.
404-347-3948
Fax No.
404-347-7849

REGION 5
Chicago 55 E. Monroe Street
Suite 1415
Chicago, IL 60603-5704
Areas served: Illinois, Ohio, Minnesota, Wisconsin, Indiana, and Michigan
Tel. No.
312-353-2789
Fax No.
312-886-0351

REGION 6
Ft. Worth 524 East Lamar Boulevard
Suite 175
Arlington, TX 76001-3900
Areas served: Texas, Oklahoma, Arkansas, Louisiana, and New Mexico
Tel. No.
817-860-9663
Fax No.
817-860-9437

REGION 7
Kansas City 6301 Rockhill Road
Suite 303
Kansas City, MO 64131-1117
Areas served: Iowa, Kansas, Nebraska, and Missouri
Tel. No.
816-523-0204
Fax No.
816-523-0927

REGION 8
Denver Columbine Place
216 16th St., Suite 650
Denver, CO 80202-5120
Areas served: Colorado, Utah, Montana, Wyoming, South Dakota, and North Dakota
Tel. No.
303-844-3242
Fax No.
303-844-4217

REGION 9
San Francisco 201 Mission Street
Room 2210
San Francisco, CA 94105-1926
Areas served: California, Arizona (1), Nevada (2), Hawaii, Guam, American Samoa, and the Northern Mariana Islands
Tel. No.
415-744-3133
Fax No.
415-744-2726

REGION 10
Seattle Jackson Federal Building
915 Second Avenue, Suite 3142
Seattle, WA 98174-1002
Areas served: Washington, Oregon, Idaho, and Alaska
Tel. No.
206-220-7954
Fax No.
206-220-7959

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APPENDICES

APPENDIX A RELATIONSHIP BETWEEN CAPITAL PROGRAM GRANTS AND THE METROPOLITAN AND STATEWIDE PLANNING PROCESS
APPENDIX B JOINT DEVELOPMENT PROJECTS
APPENDIX C ANNUAL CERTIFICATIONS AND ASSURANCES

APPENDIX A
RELATIONSHIP BETWEEN CAPITAL PROGRAM GRANTS AND THE METROPOLITAN AND STATEWIDE PLANNING PROCESS

BACKGROUND. The codification of the laws authorizing the Federal transit program begins by expressing the congressional finding that "it is in the interest of the United States to encourage and promote the development of transportation systems that embrace various modes of transportation and efficiently maximize mobility of individuals and goods in and through urbanized areas and minimize transportation-related fuel consumption and air pollution." (1) To implement this policy, each metropolitan planning organization (MPO), in cooperation with the state, must develop transportation plans and programs for its urbanized areas within the state. (2) Further, the plans and programs must provide for development of transportation facilities that will function as an integrated intermodal transportation system for the state, the metropolitan areas, and the United States. (3) Both the Federal Transit Administration (FTA) and the Federal Highway Administration (FHWA) impose transportation planning requirements as a condition of Federal assistance for most mass transportation and highway projects.
To achieve consistency in their planning requirements, FTA and FHWA have issued various joint regulations. The following text of this circular is a synopsis of part of the following two regulations:
1. Joint FHWA/FTA regulations, "Planning Assistance and Standards," 23 C.F.R. Part 450 and 49 C.F.R. Part 613 (specifically Subpart B "Statewide Transportation Planning," and Subpart C "Metropolitan Transportation Planning and Programming").
2. Joint FHWA/FTA regulations, "Management and Monitoring Systems," 23 C.F.R. Part 500 and 49 C.F.R. Part 614.
GRANT APPLICANT'S ROLE. A grant applicant for Capital Program assistance will need to be an active participant in the metropolitan planning process in order to be certain that the transit projects for which assistance is desired are properly evaluated for inclusion within the metropolitan transportation improvement program (TIP) and the statewide transportation improvement program (STIP). (As used in this appendix and the joint FHWA/FTA regulations, the TIP always refers to a metropolitan transportation improvement program.) A potential grant applicant for Capital Program assistance is therefore encouraged to participate in the local MPO's planning activities, specifically in both the development of the metropolitan transportation plan (4) (hereinafter referred to as the "metropolitan long-range transportation plan") and the development of the TIP to ensure that proposed projects are adequately considered for inclusion in the TIP and STIP.
LONG-RANGE TRANSPORTATION PLANNING.
1. Metropolitan. (5) Each MPO is required to develop and update periodically a metropolitan long-range transportation plan covering a forecast period of at least 20 years. New start projects and other major facilities projects earmarked in Federal authorizing legislation (i.e., Intermodal Surface Transportation Efficiency Act of 1991), should be addressed in the metropolitan long-range transportation plan.
2. State. (6) Each state is required to develop and update periodically a statewide transportation plan, hereinafter referred to as the "statewide long-range transportation plan" because this plan also must cover a forecast period of at least 20 years. The state must integrate each metropolitan long-range transportation plan submitted by the state's MPOs into a consistent statewide long-range transportation plan.
METROPOLITAN LONG-RANGE TRANSPORTATION PLANNING IN AN AIR QUALITY "NONATTAINMENT AREA." Each MPO serving an area designated by EPA as a nonattainment or maintenance area for purposes of the Clean Air Act, as amended, due to transportation-related pollutants (such as ozone or carbon monoxide), must coordinate development of its metropolitan long-range transportation plan with development of the state (air quality) implementation plan (SIP). (7) Before the MPO approves the metropolitan long-range transportation plan, the MPO must first provide a reasonable opportunity for interested parties to comment on that plan, including an opportunity for at least one formal public meeting annually to review planning assumptions and plan development for each nonattainment transportation management area (TMA). (8) FTA and FHWA then must review and evaluate the MPO's "conformity finding" for the metropolitan long-range transportation plan -- i.e., a finding that the metropolitan long-range transportation plan conforms with the SIP. Other air quality requirements applicable to a TMA in a nonattainment or maintenance area are discussed in paragraph 8 of this appendix.
UNIFIED PLANNING WORK PROGRAM. Unless FHWA and FTA permit an MPO to submit a simplified statement of work describing the planning activities for which it seeks Federal assistance, the MPO must develop a Unified Planning Work Program (UPWP), which addresses transportation planning activities to be undertaken in the next one or two-year period. (9) FTA makes Metropolitan Planning Program grants to states, which in turn transfer financial assistance to MPOs to support the costs of developing UPWPs. (10) FHWA, through FHWA's counterpart planning program (the "PL" Program), may also make grants to states, which in turn transfer financial assistance to MPOs to support the costs of developing UPWPs. (11) Both FTA and FHWA grant assistance may be used for transportation-related planning and is not limited to mode-specific planning activities. A state may also use some of its State Planning and Research Program assistance to provide financial assistance to MPOs to supplement the costs of preparing UPWPs. (12)
THE TRANSPORTATION IMPROVEMENT PROGRAM. The MPO, in cooperation with the state and affected transit operators, must develop a TIP for the metropolitan planning area and provide interested parties an opportunity to comment on the proposed TIP. The TIP must be updated at least once every 2 years and must be approved by the MPO and the governor of the state.
Projects proposed in the TIP for Federal funding must be consistent with the area's metropolitan long-range transportation plan. The TIP may include only projects or identified segments or phases of a project for which the entire amount of Federal and non-Federal funding can reasonably be anticipated to be available within the time period contemplated for completion of the project. Before the MPO and governor of the state approve the TIP, the MPO also must first provide adequate public notice and an opportunity for interested parties to review and comment on the proposed TIP.
Particularly important to FTA is the TIP's list of projects, including project segments and phases, intended to be carried out within the 3-year period, and the financial plan demonstrating how the TIP can be implemented, indicating resources from public and private sources expected to be made available for the project. Those projects, including segments and phases, must be listed in priority order, at a minimum, by year of funding.
Because each TIP must be financially constrained and a portion of the Capital Program funds are discretionary, Capital Program projects identified in Federal authorizing and annual appropriations legislation (funding committed to the area) may be included in the first year of the TIP, provided all other program requirements are met. The total Federal share of projects included in the second and third year of a TIP may not exceed the levels of funds committed, or reasonably expected to be available, to the metropolitan area.
Project selection for projects involving Federal participation must be made from an approved TIP by the MPO in consultation with the state in areas with population of more than 200,000, as well as in other metropolitan areas designated as TMA's. For an area with a population of less than 200,000 and not designated a TMA, project selection is carried out by the state and/or the transit operator in consultation with the MPO. Documentation for project selection must be forwarded to FTA.
FTA provides Capital Program assistance only for those projects included in the TIP and/or STIP (see paragraph below) applicable to the fiscal year in which the grant applicant requests assistance. If, for any reason, FTA does not grant available Capital Program assistance for a specific project as requested, FTA does not consider the project as remaining eligible, absent rare circumstances. Thus, if a request for that Capital Program assistance is re-submitted in a later fiscal year, the TIP and/or STIP must include that project on the list for the later year, reflecting the fact that available Capital Program assistance not granted in the past as requested continues to be desired.
STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM. A statewide transportation improvement program (STIP) must be prepared and approved by FHWA and FTA (13) before Federal assistance authorized by 49 U.S.C. chapter 53 (14) or Title 23 U.S.C. (15) may be awarded. Among other things, the STIP consists of unmodified TIPs, approved by both the MPO and governor of the state. TIPs for nonattainment and maintenance areas, however, may not be included in the STIP until the requisite air quality conformity findings are made by FTA and FHWA. A multi-year STIP should be developed with proposed projects and funding sources identified for each year. Transit projects must be selected in accordance with requirements of the specific funding programs. Each project in the grant application must be included in Year1 of the approved STIP before FTA may award a grant for that project, or be moved from Years 2 and 3 into Year 1 using project selection procedures. If the STIP is used for two years, then each project must be included, as appropriate, in years 1 or 2.
TRANSPORTATION MANAGEMENT AREAS. The Secretary of Transportation is required to designate each area with more than 200,000 in population as a TMA. Upon request by the governor of the state and the MPO, the Secretary of Transportation may also designate an area with 200,000 or less population as a TMA. (16) Within a TMA, the metropolitan long-range transportation plans and TIPs must be based on a continuing and comprehensive transportation planning process carried out by the MPO in cooperation with the state and transit operators.
For a TMA classified by EPA as a nonattainment or maintenance area for purposes of the Clean Air Act, as amended, Federal assistance funds may not be included in the TIP or STIP for any transit project that will result in a significant increase in carrying capacity for single occupant vehicles unless the project is part of an approved congestion management system (see discussion below).
The projects within the planning area boundaries of a TMA for which Federal assistance is sought must be selected by the MPO in consultation with the state and in conformance with the TIP and that TIP's priorities for the applicable funding sources.
To the extent FTA considers appropriate, simplified planning procedures producing metropolitan long-range transportation plans and TIPs may be developed for an urbanized area not designated as a TMA. (17) All projects or project groupings in an approved TIP must be included unmodified in the STIP. FTA and FHWA then approve the STIP before awarding Federal assistance.
CONGESTION MANAGEMENT SYSTEM. The transportation planning process for a TMA must include a congestion management system that provides for the use of travel demand reduction and operational management strategies to achieve effective management of new and existing transportation facilities. (18)
PROJECTS NOT IN METROPOLITAN PLANNING AREA BOUNDARIES (RURAL). A state seeking Capital Program assistance for a project in a rural area must have developed that project as a result of its statewide planning process. The state must include the rural transit project in its current STIP before FTA may award Capital Program assistance for that project.

Chapter Notes:

49 U.S.C. § 5301(a); formerly, the first sentence of section 8(a) of the Federal Transit Act, as amended (FT Act).
49 U.S.C. § 5303(a); formerly, the second sentence of section 8(a) of the FT Act.
Within 49 U.S.C. chapter 53, transportation planning requirements are set forth at 49 U.S.C. § § 5303 - 5306; formerly, transportation planning requirements of the FT Act were set forth at sections 3(e), 8, and 9(e) of the FT Act.
Defined by 23 C.F.R. § 450.104.
49 U.S.C. § 5303(f); formerly, section 8(g) of the FT Act, as amended; and 23 C.F.R. § 450.322.
23 C.F.R. § 450.214.
23 C.F.R. § 450.322(d), and joint FHWA/FTA conformity regulations at 23 C.F.R. Part 51.
23 C.F.R. § 450.322(c).
23 C.F.R. § 450.314.
49 U.S.C. § 5303(g); formerly, section 8(n) of the FT Act.
23 U.S.C. § 134.
49 U.S.C. § 5313(b)(1); formerly, section 26(a)(2) of the FT Act.
23 C.F.R. § 450.216.
49 U.S.C. chapter 53 consists of the former FT Act and related laws.
Title 23 U.S.C. consists of the codified Federal highway and surface transportation laws.
49 U.S.C. § 5305(a); formerly section 8(i)(1) of the FT Act.
23 C.F.R. § 450.316(c).
49 U.S.C. § 5305(c); formerly section 8(i)(3) of the FT Act.

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APPENDIX B
JOINT DEVELOPMENT PROJECTS

Joint development projects are commercial, residential, industrial, or mixed-use developments that are induced by or enhance the effectiveness of transit projects. Joint development projects include private, not-for-profit, and non-profit development activities usually associated with fixed guideway transit systems that are new or being modernized or extended. Joint development projects can also be associated with intermodal transfer facilities, transit malls, and Federal, state or local investments in existing facilities. Capital Program funds may be used to facilitate private development that enhances transit; they may not be used for purely private development such as construction and permanent financing costs related to the design and construction of retail, residential, or other commercial public and private revenue-producing facilities.

REQUIREMENTS. A joint development transportation project must have the following characteristics:
1. It includes a transit element; and
2. It enhances urban economic development or incorporates private investment including office, commercial, or residential development; and
3. It enhances the effectiveness of a mass transit project, and the non-transit element is physically or functionally related to a mass transit project; or it creates new or enhanced coordination between public transit and other forms of transportation. Or,
4. It includes nonvehicular capital improvements that result in increased transit usage, in corridors supporting fixed guideway systems.
PHYSICALLY RELATED. A project is physically related to a transit project if it provides a direct physical connection with transit services or facilities, including projects using air rights over transit stations or projects built adjacent to the transit station.
FUNCTIONALLY RELATED. A project is functionally related to a transit project if it is related by activity and use and it is functionally linked (with or without direct physical connection) to transit services or facilities. Also, a project is functionally related to a transit project if it provides a beneficial service to the public (or community service) and enhances usage or access to transit. Functional relationships must not extend beyond the distance most people will reasonably walk to use a transit service. This distance is estimated to be approximately 1500 feet. The eligible project area for a functionally related project will be identified by the grantee in consultation with FTA's Regional Office on a case-by-case basis.
ELIGIBLE COSTS FOR JOINT DEVELOPMENT PROJECTS. Eligible project costs for joint development projects include, but are not limited to, the following:
1. Site design, engineering, and environmental analysis as appropriate.
2. Real estate packaging for a specific joint development project including preliminary design and engineering; estimates of operating income and expenses and capital costs; and negotiations to secure financing, developers, and prime tenants.
3. Land acquisition, relocation, and demolition, as appropriate.
4. Foundations and substructure improvements for buildings over transit facilities.
5. Pedestrian connections and access links between transit services and related development.
6. Other facilities and infrastructure investments needed to induce significant private investment and to improve access between new or existing development and transit facilities.
SPECIAL COST ELEMENTS.
1. Utility work. The eligibility of costs of utility work associated with private investment will be considered on a case-by-case basis. FTA will pay for costs of utility work that are attributable to non-FTA project purposes only when--
  1. The utility services a joint private and transit use; or
  2. The utility lines will be located under a co-located street or sidewalk or within other common elements so that it would benefit the project to provide adequate capacity at the outset of the project.
2. Parking elements. FTA participation in financing parking elements of joint development projects will be considered on a case-by-case basis.
PARTICIPATION IN PROCEEDS DERIVED FROM FTA INVESTMENT.
1. Each grantee must negotiate a fair and equitable return of the benefits to be generated as a result of the FTA investment.
2. Local transit must benefit from revenues accruing as a result of FTA financial participation in a project.
3. Grantees must retain for transit-related use any proceeds and profits realized in connection with FTA participation in joint development projects.
4. Proceeds and profits may include returns generated from, but not limited to, sale or lease of property, mortgage proceeds, or returns stemming from participation in the distribution of project revenues.
5. In accordance with 49 C.F.R. 18.25, if property is sold or leased to a third party, or if any payments are made to the grantee or the public agency in consideration for the use of the property, all proceeds must be treated as program income and applied to capital and operating expenses of the transit system. When the scope of a project intends acquisition and subsequent disposition of properties or related income for joint development purposes, this intent must be clearly stated in the grant. In the absence of such definition, the more customary post-grant rules will be applied, potentially interfering with the benefits of joint development.
6. The grant agreement will address any special requirements for the use of income in a joint development project.
7. Agreements which transfer title or control of land or facilities acquired as part of the FTA project must contain provisions which--
  1. Extend the requirements, as appropriate, of the FTA grant contract (see paragraph 8);
  2. Ensure that the grantee retains continuing control of the transit assets as long as they are needed for mass transit.
OTHER FUNDS THAT MAY BE USED IN JOINT DEVELOPMENT PROJECTS. Joint development activities eligible for funding under the Capital Program are also eligible under Section 5307 (formerly Section 9), Section 5311 (formerly Section 18) and Section 5310 (formerly Section 16). Flexible funds transferred from the Federal Highway Administration to be administered by FTA may also be used to support joint development projects. (See Chapter III, paragraph 2a for a discussion of flexible funds.)
APPLICATION OF REQUIREMENTS TO PRIVATE SECTOR PROJECTS. In a joint development project, FTA must determine whether and to what degree various Federal rules apply to the privately funded, non-transit portion of the project. The applicability of Federal requirements such as those of the National Environmental Policy Act and the Davis-Bacon Act, labor protection arrangements, third-party procurement requirements, and Buy America, will be resolved on a case-by-case basis. FTA will work with the grant applicant to determine whether, and the extent to which, such Federal requirements apply, particularly to any private development, and the most appropriate procedures for satisfying the requirements.

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APPENDIX C
ANNUAL CERTIFICATIONS AND ASSURANCES

INTRODUCTION. FTA publishes a list of certifications and assurances that grant applicants must provide, in the Federal Register annually at the same time it publishes the Notice of Apportionments and Allocation for the Urbanized Area Formula Program (49 U.S.C. § 5307, formerly Section 9 of the Federal Transit Act, as amended). FTA publishes apportionments for each fiscal year no later than the 10th day following the date on which funds are appropriated or on October 1, whichever is later. Thus the certifications and assurances can be located in the Federal Register on that same date.
The applicant should obtain a copy of the Federal Register containing the current-year certifications and use that Federal Register version for making and submitting its certifications. Copies are available in FTA Regional Offices.
SUPPLEMENTARY INFORMATION. To receive a Federal grant or cooperative agreement for transportation purposes from FTA, an applicant must first provide certain certifications and assurances required by Federal laws and regulations.
The certifications and assurances in Appendix C are a reasonable representation of certifications and assurances required for FTA assistance programs. The specific language of particular certifications or assurances may change as FTA publishes the text each year, but the text presented in this Appendix C of the Capital Program circular represents FTA's current expectations concerning the responsibilities of the grant applicants, and FTA expects no fundamental changes to that text. FTA's assistance programs, to which the certifications and assurances apply, include Capital Program Grants; Research, Development and Demonstration Grants; Metropolitan Planning Grants; Formula Assistance Grants for Urbanized Areas; Grants for Training Programs; Formula Assistance Grants for the Elderly and Persons With Disabilities; Formula Assistance Grants for Nonurbanized Areas; Human Resource Grants; and Planning and Research Grants (formerly referenced as Sections 3, 6, 8, 9, 10, 11(a), 16, 18, 20, or 26, respectively, of the Federal Transit Act, as amended, now codified at 49 U.S.C. chapter 53.) FTA also uses these certifications and assurances for Federal assistance programs authorized by Title 23, United States Code administered by FTA.
The certifications and assurances contained in Appendix C are a comprehensive compilation of Federal certification and assurance requirements for transit programs to date. FTA plans to continue to publish them annually with any changes or additions specifically highlighted, in conjunction with the publication of FTA's annual apportionment Notice, which allocates funds in accordance with the latest U.S. Department of Transportation annual appropriations act. Accompanying the certifications and assurances is a signature page, allowing the applicant and its attorney to certify compliance with all certifications and assurances pertinent to any and all grants or cooperative agreements for which the applicant wishes to apply in the Federal fiscal year for which the applicant is certifying compliance.
In addition, FTA has introduced two new electronic programs for applicants. The On-Line Program is offered to applicants through the Grant Management Information System (GMIS). This is a computerized system designed to assist the grantee or cooperative agreement recipient with the management of FTA assistance projects and budgets. All applicants are encouraged to participate in the On-Line Program, which includes the opportunity to certify compliance electronically for all certifications and assurances. The Electronic Grant Making and Management initiative (EGMM) is a pilot program initiated in Fiscal Year 1995 and offered to selected grantees which were able to apply for and receive Federal assistance electronically. Both programs have been designed to aid FTA applicants by reducing time and paper. Applicants are asked to contact their Regional Office shown in Chapter X of this circular for more information.
BACKGROUND. The publication in October 1994 of the Federal Fscal Year 1995 certifications and assurances for Federal transportation assistance awards for the first time consolidated into one document all statutory and regulatory pre-grant requirements. This marked the beginning of an effort to assist applicants in reducing time and paper work in certifying compliance with various Federal laws and regulations. It coincided with the pilot program for the EGMM initiative and the On-Line Program described above, which will further reduce the time required to process an application.
The publication of certifications and assurances therefore has superseded the requirements of FTA Circular 9100.1B, dated July 1, 1988, "Standard Assurances for Urban Mass Transportation Administration Applications," which was rescinded. FTA is revising other affected circulars accordingly. These annual certifications and assurances also supersede a Statement of Continued Validity which is no longer required. However, the applicant's Attorney Affirmation is still required as indicated on the signature page.
PROCEDURES. Following the certifications and assurances is a replication of a typical signature page. The signature page is to be signed by the applicant's authorized representative and the applicant's attorney (the attorney's current affirmation may be on file in some instances), and sent to the appropriate FTA Regional office by: (1) the first-quarter application submission date published in the annual fiscal year apportionment announcement; or (2) with the applicant's first Federal assistance application of each Federal fiscal year.
The signature page, when properly signed and submitted to FTA, assures FTA that the applicant intends to comply with the requirements for the specific program involved. Both parts of the signature page must be completed, first by marking where appropriate with an ''X'' on the category selection part, and then signifying compliance by signing the other part.
In the event the applicant is a participant in the EGMM initiative or the On-Line Program described above, submission of the signature page may be accomplished electronically. The applicant is advised to consult with the appropriate Regional Office prior to submission.

FY 19xx CERTIFICATIONS AND ASSURANCES FOR FTA ASSISTANCE PROGRAMS

Each Applicant is requested to provide as many of the following certifications and assurances as possible to cover each application for the various types of Federal assistance the applicant intends to submit to FTA in Federal Fiscal Year 19xx. A state making certifications and assurances on behalf of its prospective subrecipients of FTA assistance is expected to obtain sufficient documentation from those subrecipients for the state to make informed certifications and assurances. The thirteen categories are listed by Roman numerals I through XIII on one part of the Signature Page document. Categories II through XIII may not be required of all applicants. The categories correspond to the following descriptions of circumstances mandating submission of specific certifications, assurances, or agreements:

I. CERTIFICATIONS AND ASSURANCES REQUIRED OF EACH APPLICANT

Each Applicant for Federal assistance awarded by FTA must make all certifications and assurances in this Category I. Accordingly, FTA may not award any Federal assistance until the Applicant provides assurance of compliance by selecting Category I on the Signature Page at the end of this document.

Authority of Applicant and Its Representative
The authorized representative of the Applicant and legal counsel who sign these certifications, assurances, and agreements attest that both the Applicant and its authorized representative have adequate authority under state and local law and the by-laws or internal rules of the Applicant organization to:
1. Execute and file the application for Federal assistance on behalf of the Applicant,
2. Execute and file the required certifications, assurances, and agreements on behalf of the Applicant binding the Applicant, and
3. Execute grant and cooperative agreements with FTA on behalf of the Applicant.
Standard Assurances
The Applicant assures that it will comply with all applicable Federal statutes, regulations, executive orders, FTA circulars, and other Federal administrative requirements in carrying out any grant or cooperative agreement awarded by FTA. The Applicant acknowledges that it is under a continuing obligation to comply with the terms and conditions of the grant or cooperative agreement issued for its approved project with FTA. The Applicant understands that Federal laws, regulations, policies, and administrative practices might be modified from time to time and affect the implementation of the project. The Applicant agrees that the most recent Federal requirements will apply to the project, unless FTA issues a written determination otherwise.
Debarment, Suspension, and Other Responsibility Matters -- Primary Covered Transactions
As required by U.S. DOT regulations on Governmentwide Debarment and Suspension (Nonprocurement) at 49 CFR 29.510, the Applicant (Primary Participant) certifies to the best of its knowledge and belief, that it and its principals:
1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;
2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) transaction or contract under a public transaction; violation of Federal or state antitrust statutes; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, state, or local) with commission of any of the offenses listed in paragraph (2) of this certification; and,
4. Have not within a three year period preceding this application had one or more public transactions (Federal, state, or local) terminated for cause or default.
The Applicant (Primary Participant) certifies that if it becomes aware of any later information that contradicts the statements of paragraphs (1) through (4) above, it will promptly inform FTA. Should the Applicant (Primary Participant) be unable to certify to the statements of paragraphs (1) through (4) above, it shall so acknowledge on its Signature Page and provide a written explanation to FTA.
Drug-Free Workplace Certification
As required by U.S. DOT regulations on Drug-Free Workplace Requirements (Grants) at 49 CFR 29.630, the Applicant certifies that it will provide a drug-free workplace by:
1. Publishing a statement notifying its employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the Applicant's workplace and specifying the actions that will be taken against its employees for violation of such prohibition;
2. Establishing an ongoing drug-free awareness program to inform its employees about: (a) the dangers of drug abuse in the workplace; (b) the Applicant's policy of maintaining a drug-free workplace; (c) any available drug counseling, rehabilitation, and employee assistance programs; and (d) the penalties that may be imposed upon its employees for drug abuse violations occurring in the workplace;
3. Making it a requirement that each of its employees to be engaged in the performance of the grant or cooperative agreement be given a copy of the statement required by paragraph (1);
4. Notifying each of its employees in the statement required by paragraph (1) that, as a condition of employment financed with Federal assistance provided by the grant or cooperative agreement, the employee will: (a) abide by the terms of the statement, and (b) notify the employer (applicant) in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than 5 calendar days after such conviction;
5. Notifying FTA in writing, within 10 calendar days after receiving notice under paragraph (4)(b) from an employee or otherwise receiving actual notice of such conviction. The applicant, which is the employer of any convicted employee must provide notice, including position title, to every project officer or other designee on whose project activity the applicant's convicted employee was working. Notice shall include the identification number(s) of each affected grant or cooperative agreement.
6. Taking one of the following actions within 30 calendar days of receiving notice under paragraph (4)(b) with respect to any employee who is so convicted by: (a) taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended, or (b) requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, state, or local health, law enforcement, or other appropriate agency;
7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (1), (2), (3), (4), (5), and (6).
The Applicant has or will provide to FTA a list identifying its headquarters location and each workplace it maintains in which FTA assisted activities are conducted.
Intergovernmental Review Assurance
The Applicant assures that each application submitted to FTA for Federal assistance has been or will be submitted, as required by each state, for intergovernmental review to the appropriate state and local agencies. Specifically,
the Applicant assures that it has fulfilled or will fulfill the obligations imposed on FTA by U.S. DOT regulations, "Intergovernmental Review of Department of Transportation Programs and Activities," 49 CFR part 17.
Nondiscrimination Assurance
As required by 49 U.S.C. 5332 and title VI of the Civil Rights Act of 1964, as amended, 2000d and U.S. DOT regulations, "Nondiscrimination in Federally-Assisted Programs of the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act," 49 CFR 21.7, the Applicant assures that it will comply with all requirements of 49 CFR part 21; FTA Circular 4702.1, "Title VI Program Guidelines for Federal Transit Administration Recipients"; and other applicable directives, so that no person in the United States, on the basis of race, color, national origin, creed, sex, or age will be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination in any program or activity (particularly in the level and quality of transportation services and transportation-related benefits) for which the Applicant receives Federal assistance awarded by the U.S. DOT or FTA as follows:
1. The Applicant assures that each project will be conducted, property acquisitions will be undertaken, and project facilities will be operated in accordance with all requirements of 49 CFR part 21 and 49 U.S.C. 5332, and understands that this assurance extends to its entire facility and to facilities operated in connection with the project.
2. The Applicant assures that it will take appropriate action to ensure that any transferee receiving property financed with Federal assistance derived from FTA will comply with the requirements of 49 CFR part 21 and 49 U.S.C. 5332.
3. The Applicant assures that it will promptly take the necessary actions to effectuate this assurance, including notifying the public that complaints of discrimination in the provision of transportation-related services or benefits may be filed with U.S. DOT or FTA. Upon request by U.S. DOT or FTA, the Applicant assures that it will submit the required information pertaining to its compliance with these requirements.
4. The Applicant assures that it will make such changes in its 49 U.S.C. 5332 and Title VI implementing procedures as U.S. DOT or FTA may request.
5. As required by 49 CFR 21.7(a)(2), the Applicant will include appropriate clauses in each third party contract or subagreement to impose the requirements of 49 CFR part 21 and 49 U.S.C. 5332, and include appropriate provisions imposing those requirements in deeds and instruments recording the transfer of real property, structures, improvements.
Assurance of Nondiscrimination on the Basis of Disability
As required by section 27.9 of U.S. DOT regulations, "Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance," 49 CFR part 27, implementing the Rehabilitation Act of 1973, as amended, and the Americans with Disabilities Act of 1990, the Applicant assures that, as a condition to the approval or extension of any Federal assistance awarded by FTA to construct any facility, obtain any rolling stock or other equipment, undertake studies, conduct research, or to participate in or obtain any benefit from any program administered by FTA, no otherwise qualified person with a disability shall be, solely by reason of that disability, excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in any program or activity receiving or benefiting from Federal assistance administered by the FTA or any entity within U.S. DOT. The Applicant assures that project implementation and operations so assisted will comply with all applicable requirements of U.S. DOT regulations implementing the Rehabilitation Act of 1973, as amended, and the Americans with Disabilities Act of 1990, and any later amendments thereto, at49 CFR parts 27, 37, and 38, and any applicable regulations and directives issued by other Federal departments or agencies.
Procurement Compliance
The Applicant certifies that its procurements and procurement system will comply with all applicable requirements imposed by Federal laws, executive orders, or regulations and the requirements of FTA Circular 4220.1C, "Third Party Contracting Requirements," and other implementing guidance or manuals FTA may issue. The Applicant certifies that it will include in its contracts financed in whole or in part with FTA assistance all clauses required by Federal laws, executive orders, or regulations, and will ensure that each subrecipient and contractor will also include in its subagreements and contracts financed in whole or in part with FTA assistance all clauses required by Federal laws, executive orders, or regulations.

II. LOBBYING CERTIFICATION REQUIRED FOR EACH APPLICATION EXCEEDING $100,000

An Applicant that submits, or intends to submit this fiscal year, an application for FTA assistance exceeding $100,000 must provide the following certification. FTA may not provide Federal assistance for an application exceeding $100,000 until the Applicant provides this certification by selecting Category II on the Signature Page.

As required by U.S. DOT regulations, "New Restrictions on Lobbying," at 49 CFR 20.110, the Applicant's authorized representative certifies to the best of his or her knowledge and belief that for each Federal assistance application exceeding $100,000:

A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Applicant, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with awarding any Federal grant or cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any Federal grant or cooperative agreement.

B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any application to FTA for Federal assistance, the Applicant assures that it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with the form's instructions.

C. The Applicant shall require that the text of this certification be included in the award documents for each subagreement and contract under a grant and cooperative agreement (at any tier) financed in whole or in part with FTA assistance, and that each subrecipient and contractor shall certify and disclose accordingly.

The Applicant understands that this certification is a material representation of fact upon which reliance is placed when this transaction was made or entered into and that submission of this certification is a prerequisite for making or entering into a transaction covered by 31 U.S.C. 1352. The Applicant also understands that any person who fails to file a required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

II. PUBLIC HEARING CERTIFICATION REQUIRED FOR EACH PROJECT (EXCEPT URBANIZED AREA FORMULA PROJECTS) THAT WILL SUBSTANTIALLY AFFECT A COMMUNITY OR ITS TRANSIT SERVICE

Apart from FTA's formula assistance program for urbanized areas, an Applicant for capital assistance or assistance that will substantially affect a community or its transit service financed under another program must provide the following certification. FTA may not award such assistance until the Applicant provides this certification by selecting Category III on the Signature Page.

As required by 49 U.S.C. 5323(b), the Applicant certifies that it has, or before submitting its application, it will have:

A. Provided an adequate opportunity for a public hearing with adequate prior notice that includes a concise statement of the proposed project, published in a newspaper of general circulation in the geographic area to be served;

B. Held that hearing and provided to FTA either a transcript or detailed report with a summary of issues discussed and responses provided, unless no party with a significant economic, social, or environmental interest requests a hearing;

C. Considered the economic, social, and environmental effects of the project; and

D. Determined the project to be consistent with official plans for developing the urban area.

IV. CERTIFICATION OF PRE-AWARD AND POST-DELIVERY REVIEWS OF ROLLING STOCK REQUIRED FOR EACH APPLICANT THAT PURCHASES ROLLING STOCK

An Applicant seeking FTA assistance to purchase rolling stock must make the following certification. FTA may not provide assistance for any rolling stock acquisition until the Applicant provides this certification by selecting Category IV on the Signature Page.

As required by 49 U.S.C. 5323(l), and implementing FTA regulations at 49 CFR 663.7, the Applicant certifies that it will comply with the requirements of 49 CFR part 663, in the course of purchasing revenue service rolling stock. Among other things, the Applicant will conduct or cause to be conducted the prescribed pre-award and post-delivery reviews, and will maintain on file the certifications required by 49 CFR subparts B, C, and D.

V. BUS TESTING CERTIFICATION REQUIRED FOR THE ACQUISITION OF NEW BUSES

An Applicant seeking FTA assistance to acquire new buses must make the following certification. FTA may not provide assistance for the acquisition of new buses until the Applicant provides this certification by selecting Category V on the Signature Page.

As required by FTA regulations, "Bus Testing," at 49 CFR 665.7, the Applicant certifies that before authorizing final acceptance of the first bus of any new bus model or any bus model with a major change in configuration or components (as described in 49 CFR part 665) acquired or leased with Federal assistance funds awarded by FTA: (1) the model of the bus will have been tested at a bus testing facility approved by FTA; and

(2) the Applicant will have received a copy of the test report prepared on the bus model.

VI. CHARTER BUS AGREEMENT

An Applicant seeking FTA assistance to acquire buses must agree as follows. FTA may not provide assistance for bus projects until the Applicant accepts this agreement by selecting Category VI on the Signature Page.

In accordance with 49 U.S.C. 5323(d) and FTA regulations, "Charter Service," at 49 CFR 604.7, the Applicant agrees that it and all its recipients will:

A. Provide charter service that uses equipment or facilities acquired with Federal assistance authorized for 49 U.S.C. 5307, 5309, or 5311; or transit projects awarded by FTA with Federal assistance derived from Title 23 U.S.C., only to the extent that there are no private charter service operators willing and able to provide the charter service that it or its recipients desire to provide, unless one or more of the exceptions in 49 CFR 604.9 applies.

B. Comply with the provisions of 49 CFR part 604 before they provide any charter service using equipment or facilities provided with Federal assistance authorized for the above statutes

The Applicant understands that the requirements of 49 CFR part 604 will apply to any such charter service that is provided, the definitions in 49 CFR part 604 apply to this agreement, and that a violation of this agreement may require corrective measures and the imposition of penalties, including debarment from the receipt of further Federal assistance for transportation.

VII. SCHOOL BUS AGREEMENT

An Applicant seeking FTA assistance to acquire transportation facilities and equipment with Federal assistance authorized by 49 U.S.C. ch. 53 must agree as follows. FTA may not provide assistance for transportation facilities until the Applicant accepts this Agreement by selecting Category VII on the Signature Page.

In accordance with 49 U.S.C. 5323(f) and FTA regulations, "School Bus Operations," at 49 CFR 605.14, the Applicant agrees that it and all its recipients will:

A. Engage in school bus operations in competition with private school bus operators, only to the extent permitted by an exception provided by 49 U.S.C. 5323(f), and implementing regulations.

B. Comply with the requirements of 49 CFR part 605 and before providing any school bus service using equipment or facilities acquired with Federal assistance authorized by 49 U.S.C. ch. 53 or Title 23 U.S.C. awarded by FTA for transportation projects.

The Applicant understands that the requirements of 49 CFR part 605 will apply to any such school bus service it provides, the definitions of 49 CFR part 605 apply to this school bus agreement, and a violation of this agreement may require corrective measures and the imposition of penalties, including debarment from the receipt of further Federal assistance for transportation.

VIII. CERTIFICATION REQUIRED FOR THE DIRECT AWARD OF FTA ASSISTANCE TO AN APPLICANT FOR ITS DEMAND RESPONSIVE SERVICE

For FTA to award Federal assistance directly to an Applicant to support its demand responsive service, the Applicant must provide the following certification. FTA may not award Federal assistance directly to an Applicant to support its demand responsive service until the Applicant provides this certification by selecting Category VIII on the Signature Page.

As required by U.S. DOT regulations, "Transportation Services for Individuals with Disabilities (ADA)," at 49 CFR 37.77, the Applicant certifies that its demand responsive service offered to persons with disabilities, including persons who use wheelchairs, is equivalent to the level and quality of service offered to persons without disabilities. Such service, when viewed in its entirety, is provided in the most integrated setting feasible and is equivalent with respect to: (1) response time; (2) fares; (3) geographic service area; (4) hours and days of service; (5) restrictions on trip purpose; (6) availability of information and reservation capability; and (7) constraints on capacity or service availability.

IX. SUBSTANCE ABUSE CERTIFICATIONS REQUIRED BY JANUARY 1, 1996

An Applicant required by Federal regulations to provide the following substance abuse certifications, must do so by January 1, 1996. FTA may not provide Federal assistance until an Applicant required to provide the following certifications by January 1, 1996 has selected Category IX on the Signature Page.

Alcohol Testing Certification
As required by FTA regulations, "Prevention of Alcohol Misuse in Transit Operations," at 49 CFR 654.83, the Applicant certifies that it and its contractors, as required, has or will have, by January 1, 1996, established and implemented an alcohol misuse prevention program in compliance with the requirements of 49 CFR part 654; and to the extent that the Applicant has employees regulated by the Federal Railroad Administration (FRA), the
Applicant also certifies that it has for those employees an alcohol misuse prevention program that complies with the requirements of FRA's regulations, "Control of Alcohol and Drug Use," 49 CFR part 219.
Anti-Drug Program Certification
As required by FTA regulations, "Prevention of Prohibited Drug Use in Transit Operations," at 49 CFR 653.83, the Applicant certifies that it and its contractors, as required, has or will have, by January 1, 1996, established and implemented an anti-drug program, and has or will have conducted employee training in compliance with the requirements of 49 CFR part 653; and to the extent that the Applicant has employees regulated by FRA, the Applicant also certifies that it has for those employees an anti-drug program that complies with the requirements of FRA's regulations, "Control of Alcohol and Drug Use," 49 CFR part 219.

X. ASSURANCES FOR PROJECTS INVOLVING REAL PROPERTY OR CONSTRUCTION THEREON

The Applicant must provide the following assurances in connection with each application for Federal assistance to acquire (purchase or lease) real property. FTA may not award Federal assistance for a project involving real property until the Applicant provides these assurances shown by selecting Category X on the Signature Page.

Relocation and Real Property Acquisition Assurance
As required by U.S. DOT regulations, "Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs," at 49 CFR 24.4, and sections 210 and 305 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. 4630 and 4655, the Applicant assures that it has the requisite authority under applicable state and local law and will comply with the terms of that Act, 42 U.S.C. 4601 et seq. Specifically:
1. The Applicant will comply with the requirements of U.S. DOT regulations, "Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs," 49 CFR part 24;
2. The Applicant will adequately inform each affected person of the benefits, policies, and procedures provided for in 49 CFR part 24;
3. The Applicant will provide fair and reasonable relocation payments and assistance required by 42 U.S.C. 4622, 4623, and 4624; 49 CFR part 24; and any applicable FTA procedures, to or for families, individuals, partnerships, corporations or associations displaced as a result of any project financed with FTA assistance;
4. The Applicant will provide relocation assistance programs offering the services described in 42 U.S.C. 4625 to such displaced families, individuals, partnerships, corporations or associations in the manner provided in 49 CFR part 24 and FTA procedures;
5. Within a reasonable time prior to displacement, the Applicant will make available comparable replacement dwellings to such displaced families and individuals as required by 42 U.S.C. 4625(c)(3);
6. The Applicant will carry out the relocation process in such a manner as to provide displaced persons with uniform and consistent services, and will make available replacement housing in the same range of choices with respect to such housing to all displaced persons regardless of race, color, religion, or national origin; and
7. In acquiring real property, the Applicant will be guided to the greatest extent practicable under state law, by the real property acquisition policies of 42 U.S.C. 4651 and 4652;
8. The Applicant will pay or reimburse property owners for necessary expenses as specified in 42 U.S.C. 4653 and 4654, with the understanding that FTA will participate in the Applicant's costs of providing those payments and that assistance for the project as required by 42 U.S.C. 4631;
9. The Applicant will execute such amendments to contracts and agreements financed with FTA assistance and execute, furnish, and be bound by such additional documents as FTA may determine necessary to effectuate or implement the assurances provided herein; and
10. The Applicant agrees to make this document part of and incorporate it by reference in any contract or agreement, or any supplements and amendments thereto, relating to any project financed by FTA involving relocation or land acquisition and provide in any affected document that these relocation and land acquisition provisions shall supersede any conflicting provisions.
Flood Insurance Coverage
As required by section 102(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4012a(a), the Applicant assures that in the course of implementing each project financed with Federal assistance, the Applicant will obtain appropriate insurance for any real estate acquired or construction undertaken thereon within any special flood hazard area as identified by the Federal Insurance Administrator. The Applicant understands that such insurance is available in the participating area through the U.S. Federal Emergency Management Agency's National Flood Insurance Program.
Seismic Safety Assurance
As required by U.S. DOT regulations, "Seismic Safety," 49 CFR 41.117(d), the Applicant assures that before it accepts delivery of any building financed with Federal assistance provided by FTA, the Applicant will obtain a certificate of compliance with the seismic design and construction requirements of 49 CFR part 41.

XI. CERTIFICATIONS REQUIRED FOR THE URBANIZED AREA FORMULA PROGRAM

Each Applicant to FTA for urbanized area formula program assistance authorized by 49 U.S.C. 5307 must provide the following certifications in connection with its application. FTA may not award urbanized area formula program assistance to the Applicant until the Applicant provides these certifications. Note that in Category XI.A, the Applicant must indicate which certification it is making about transit security projects by selecting Category XIA(1) or Category XIA(2) on the Signature Page. (See item (10) below.)

Certifications Required by Statute
As required by 49 U.S.C. 5307(d)(1)(A) through (J), the Applicant certifies that:
1. It has or will have the legal, financial, and technical capacity to carry out the proposed program of projects;
2. It has or will have satisfactory continuing control over the use of the equipment and facilities;
3. It will adequately maintain the equipment and facilities;
4. It will ensure that the elderly and handicapped persons, or an individual presenting a Medicare card issued to that person under title II or title XVIII of the Social Security Act (42 U.S.C. 401 et seq. or 42 U.S.C. 1395 et seq.) will be charged during non-peak hours for transportation using or involving a facility or equipment of a project financed with Federal assistance authorized by 49 U.S.C. ch. 53 not more than 50 percent of the peak hour fare;
5. In carrying out a procurement financed with Federal assistance authorized for 49 U.S.C. 5307, it will use competitive procurement (as defined or approved by the Secretary), will not use a procurement using exclusionary or discriminatory specifications, and will comply with applicable Buy America laws in carrying out a procurement;
6. It has complied or will comply with the requirements of 49 U.S.C. 5307(c); specifically, it has or before submitting its application it will: (a) make available to the public information on amounts available through 49 U.S.C. 5307 and the program of projects that the Applicant proposes to undertake with those funds; (b) develop, in consultation with interested parties, including private transportation providers, a proposed program of projects for activities to be financed; (c) publish a proposed program of projects in a way that affected citizens, private transportation providers, and local elected officials have the opportunity to examine the proposed program and submit comments on the proposed program and the performance of the Applicant; (d) provide an opportunity for a public hearing to obtain the views of citizens on the proposed program of projects; and (e) ensure that the proposed program of projects provides for the coordination of transportation services assisted under 49 U.S.C. 5336 with transportation services assisted by another Federal Government source; (f) consider comments and views received, especially those of private transportation providers, in preparing the final program of projects; and (g) make the final program of projects available to the public;
7. It has or will have available and will provide the required amount of funds required by 49 U.S.C. 5307(e) and applicable FTA policy (specifying Federal and local shares of project costs);
8. It will comply with: (a) 49 U.S.C. 5301(a) (requirements to develop transportation systems that efficiently maximize mobility and minimize fuel consumption and air pollution); (b) 49 U.S.C. 5301(d) (requirements for the transportation of the elderly and persons with disabilities); (c) 49 U.S.C. 5303 through 5306 (planning requirements); and (d) 49 U.S.C. 5310(a) through (d) (programs for the elderly and persons with disabilities);
9. It has a locally developed process to solicit and consider public comment before raising a fare or implementing a major reduction of transportation; and
10. As required by 49 U.S.C. 5307(d)(1)(J), it will treat its transit security needs in one of the following ways, as indicated on its Signature Page at Category XI(A)(1) or Category XI(A)(2): Either it will expend at least one percent of the amount it receives for this fiscal year apportioned by 49 U.S.C. 5336 for transit security projects, including increased lighting in or adjacent to a transit system (including bus stops, subway stations, parking lots, and garages), increased camera surveillance of an area in or adjacent to that system, providing an emergency telephone line to contact law enforcement or security personnel in an area in or adjacent to that system, and any other project intended to increase the security and safety of an existing or planned transit system; or it has decided that it is not necessary to expend its funds apportioned by 49 U.S.C. 5336 this fiscal year for security projects.
Certification Required for Capital Leasing
As required by FTA regulations, "Capital Leases," 49 CFR at 639.15(b)(1) and 639.21, to the extent that the Applicant uses funds derived from 49 U.S.C. 5307 to acquire any capital asset by lease, the Applicant certifies that:
1. It will not use funds authorized for 49 U.S.C. 5307 to finance the cost of leasing any capital asset until it undertakes calculations demonstrating that it is more cost-effective to lease the capital asset than to purchase or construct similar assets;
2. It will complete these calculations before entering into the lease or before receiving a capital grant for the asset, whichever is later; and
3. It will not enter into a capital lease for which FTA can only provide incremental funding unless it has the financial capacity to meet its future obligations under the lease in the event Federal funds are not available for capital assistance in subsequent years.

XII. CERTIFICATIONS AND ASSURANCES FOR THE FORMULA PROGRAM FOR THE ELDERLY AND PERSONS WITH DISABILITIES

An Applicant that intends to administer, on behalf of the state, the formula program for the elderly and persons with disabilities must provide the following certifications. FTA may not award assistance for this program until the Applicant provides these certifications and assurances by selecting Category XII on the Signature Page.

Based on its own knowledge and, as necessary, on information submitted by the subrecipient, the Applicant administering the formula assistance program for the elderly and persons with disabilities on behalf of the state certifies and assures that the following requirements and conditions will have been fulfilled before any Federal assistance authorized for 49 U.S.C. 5310 will be provided to a specific subrecipient:

A. The state department or organization serving as the Applicant and each subrecipient has or will have the necessary legal, financial, and managerial capability to apply for, receive, and disburse Federal assistance authorized by 49 U.S.C. 5310 funds; and to implement and manage the project.

B. The state assures that each subrecipient either is recognized under state law as a private nonprofit organization with the legal capability to contract with the state to carry out the proposed project, or is a public body that has met the statutory requirements to receive funds authorized for 49 U.S.C. 5310.

C. The subrecipient's application for 49 U.S.C. 5310 assistance contains information from which the state concludes that the transit service provided or offered to be provided by existing public or private transit operators is unavailable, insufficient, or inappropriate to meet the special needs of the elderly and persons with disabilities.

D. The state assures that sufficient non-Federal funds have been or will be committed to provide the required local share.

E. The subrecipient has, or will have by the time of delivery, sufficient funds to operate and maintain the vehicles and equipment purchased with Federal assistance awarded for this project.

F. The state assures that its formula program for the elderly and persons with disabilities is included in the Statewide Transportation Improvement Program as required by 23 U.S.C. 135; and all projects in urbanized areas recommended for approval are included in the annual element of the metropolitan Transportation Improvement Program in which the subrecipient is located.

G. The subrecipient has, to the maximum extent feasible, coordinated with other transportation providers and users, including social service agencies authorized to purchase transit service.

H. The subrecipient is in compliance with all applicable civil rights requirements, and has signed the Nondiscrimination Assurance. (Category I, G. "Certifications and Assurances Required of Each Applicant.")

I. The subrecipient will comply with applicable requirements of U.S. DOT regulations on participation of disadvantaged business enterprises in U.S. DOT programs.

J. The state will comply with all existing Federal requirements regarding transportation of the elderly and persons with disabilities. The subrecipient has provided to the state an Assurance of Nondiscrimination on the Basis of Disability, as set forth in the Certifications and Assurances required of each Applicant for FTA assistance.

(Category I, F "Certifications and Assurances Required of Each Applicant." ) If non-accessible vehicles are being purchased for use by a public entity in demand responsive service for the general public, the state will obtain from the subrecipient a "Certification of Equivalent Service," which states that the public entity's demand responsive service offered to persons with disabilities, including persons who use wheelchairs, is equivalent to the level and quality of service the public entity offers to persons without disabilities. (See Category VIII "Certifications Required for the Direct Award of FTA Assistance to an Applicant for its Demand Responsive Service.")

This "Certification of Equivalent Service" must also state that the public entity's demand responsive service, when viewed in its entirety, is provided in the most integrated setting feasible and has equivalent: (1) response time; (2) fares; (3) geographic service area; (4) hours and days of service; (5) restrictions or restraints on trip purpose; (6) availability of information and reservation capability; and (7) constraints on capacity or service availability.

K. The subrecipient has certified to the state that it will comply with applicable provisions of 49 CFR part 605 pertaining to school bus operations. (See Category VII, "School Bus Agreement.")

L. Unless otherwise noted, each of the subrecipient's projects qualifies for the type of categorical exclusion that does not require further FTA environmental approvals, as described in the joint FHWA/FTA regulations, "Environmental Impact and Related Procedures," at 23 CFR 771.117(c). In the case of any project not qualifying for a categorical exclusion described in 23 CFR 771.117(c), the state assures that financial assistance will not be provided for that project until FTA has made the required environmental finding. In addition, if a conformity finding for the project is required by the Environmental Protection Agency's clean air conformity regulations for FTA programs at 40 CFR parts 51 and 93, the state certifies that no financial assistance will be provided for that project until FTA makes the requisite conformity finding.

M. The subrecipient has submitted (or will submit) all certifications and assurances currently required, including, but not limited to: a nonprocurement suspension and debarment certification; a bus testing certification for new models; a pre-award and post-delivery review certification; and a lobbying certification for each application exceeding $100,000.

N. The state will enter into a written agreement with each subrecipient stating the terms and conditions of assistance by which the project will be undertaken and completed.

O. The state recognizes FTA's authority to conduct audits to verify compliance with the foregoing requirements and stipulations.

XIII. CERTIFICATIONS AND ASSURANCES FOR THE NONURBANIZED AREA FORMULA PROGRAM

The Applicant that intends to administer, on behalf of the state, the nonurbanized area formula program areas must submit the following certifications and assurances. FTA may not award urbanized area formula program assistance to the Applicant until the Applicant provides these certifications and assurances. In addition to selecting these miscellaneous certifications and assurances for this Category XIII, the Applicant must indicate which certification it is making about expenditures for intercity transportation projects by selecting (A) or (B) in Category XIII on the Signature Page.

Based on its own knowledge and, as necessary, on information submitted by the subrecipient, the Applicant administering the nonurbanized area formula assistance program on behalf of the state certifies and assures that the following requirements and conditions will have been fulfilled before any Federal assistance authorized for

49 U.S.C. 5311 will be provided to a specific subrecipient:

49 U.S.C. 5311; and to implement and manage the project.

B. The state assures that sufficient non-Federal funds have been or will be committed to provide the required local share.

C. The subrecipient has, or will have by the time of delivery, sufficient funds to operate and maintain the vehicles and equipment purchased with Federal assistance authorized for this project.

D. The state assures that its formula assistance program for nonurbanized areas is included in the Statewide Transportation Improvement Program as required by 23 U.S.C. 135; and to the extent applicable, projects are included in a metropolitan Transportation Improvement Program.

E. The state has provided for a fair and equitable distribution of assistance authorized for 49 U.S.C. 5311 within the state, including Indian reservations within the state.

F. The subrecipient has, to the maximum extent feasible, coordinated with other transportation providers and users, including social service agencies authorized to purchase transit service.

G. The subrecipient is in compliance with all applicable civil rights requirements, and has signed the Nondiscrimination Assurance. (See Category I, G, "Certifications and Assurances Required of Each Applicant.")

H. The subrecipient will comply with applicable requirements of U.S. DOT regulations on participation of disadvantaged business enterprise in U.S. DOT programs.

I. The state will comply with all existing Federal requirements regarding transportation of elderly persons and persons with disabilities. The subrecipient has provided to the state an Assurance of Nondiscrimination on the Basis of Disability, as set forth in the Certifications and Assurances required of each Applicant for FTA assistance in Category I of this document. If non-accessible vehicles are being purchased for use by a public entity in demand responsive service for the general public, the state will obtain from the subrecipient a "Certification of Equivalent Service," which states that the public entity's demand responsive service offered to persons with disabilities, including persons who use wheelchairs, is equivalent to the level and quality of service the public entity offers to persons without disabilities. (See Category I, F , "Certifications and Assurances Required of Each Applicant.") This "Certification of Equivalent Service" must also state that the public entity's demand responsive service, when viewed in its entirety, is provided in the most integrated setting feasible and has equivalent: (1) response time; (2) fares; (3) geographic service area; (4) hours and days of service; (5) restrictions and restraints on trip purpose; (6) availability of information and reservation capability; and (7) constraints on capacity or service availability. (See Category VIII, "Certifications Required for the Direct Award of FTA Assistance to an Applicant for its Demand Responsive Service.")

J. The subrecipient has complied with the transit employee protective provisions of 49 U.S.C. 5333(b), by one of the following actions: (1) signing the Special Warranty for the Nonurbanized Area Formula Program, (2) agreeing to alternative comparable arrangements approved by the Department of Labor (DOL), or (3) obtaining a waiver from DOL; and the state has certified the subrecipient's compliance to DOL.

K. The subrecipient has certified to the state that it will comply with 49 CFR part 604 in the provision of any charter service provided with equipment or facilities acquired with FTA assistance, and will also comply with applicable provisions of 49 CFR part 605 pertaining to school bus operations. (See Category VI, "Charter Bus Agreement," and Category VII, "School Bus Agreement.")

M. The subrecipient has submitted (or will submit) all certifications and assurances currently required, including but not limited to: a nonprocurement suspension and debarment certification; a bus testing certification for new bus models; a pre-award and post-delivery review certification; a lobbying certification for each application exceeding $100,000; and if required by FTA, an anti-drug program certification and an alcohol testing certification.

N. The state will enter into a written agreement with each subrecipient stating the terms and conditions of assistance by which the project will be undertaken and completed.

O. The state recognizes FTA's authority to conduct audits to verify compliance with the foregoing requirements and stipulations.

P. As required by 49 U.S.C. 5311(f), it will address intercity transportation needs in one of the following ways, as indicated on its Signature Page at Category XIII (A) or (B): Either it will expend not less than 15 percent of the funds authorized for 49 U.S.C. 5311(f) it receives during this fiscal year to carry out a program to develop and support intercity bus transportation, or the chief executive officer of the state, or his or her duly authorized designee, has certified that the intercity bus service needs of the state are being adequately met.

FEDERAL FISCAL YEAR 19xx CERTIFICATIONS AND ASSURANCES FOR FTA ASSISTANCE

Signature Page

Both sides of this Signature Page must be appropriately completed and signed where indicated.

For all Categories I, II, III, IV, V, VI, VII, VIII, IX, X, XI.B, and XII: (select here) ____

Applicant's selection of above replaces individual selections below, except for XI.A and XIII options.

Certifications and Assurances Required of Each Applicant. (previously separate Procurement Category is now Category I, paragraph H.)
Lobbying Certification.
Public Hearing Certification for Major Projects with Substantial Impacts.
Certification for the Purchase of Rolling Stock.
Bus Testing Certification.
Charter Bus Agreement.
School Bus Agreement.
Certification for Demand Responsive Service.
Substance Abuse Certifications Required by January 1, 1996.
Assurances for the Acquisition (Purchase or Lease) of Real Property.
Certifications for Formula Assistance for Urbanized Areas. (Applicants must select either A(1) or A(2) below.)
1. Miscellaneous Certifications
  1. All Certifications; not less than 1% of the formula assistance funds it receives this fiscal year will be used for transit security.
  2. All Certifications; it is unnecessary to spend 1% of the block assistance funds it receives this fiscal year for transit security.
2. Capital Leasing Certification. (select if appropriate during this fiscal year)
Certifications for Formula Assistance for the Elderly and Persons with Disabilities.
Certifications for Formula Assistance for Nonurbanized Areas. (Applicants must select either A or B below.)
1. All required certifications; 15% of nonurbanized area funds it receives this fiscal year will be used for intercity bus projects.
2. All required certifications; the state's chief executive officer has certified that state intercity bus service needs are adequately met.
Name of Applicant:_______________________________________________________
Name and Relationship of Authorized Representative:________________________________________
BY ENDORSING THIS SIGNATURE PAGE, I, _______________________(name) declare that I am duly authorized by the Applicant to make the certifications and assurances on behalf of the Applicant and bind the Applicant to comply with them. Thus, the Applicant agrees to comply with all Federal statutes, regulations, executive orders, and administrative guidance required for any application it makes to the Federal Transit Administration (FTA) during Federal Fiscal Year 19xx.
FTA intends that the certifications and assurances the Applicant selects on the other part of this form, as representative of the certifications and assurances in Appendix A, should apply, as required, to each project for which the Applicant seeks now, or may later, seek FTA assistance during Federal Fiscal Year 19xx.
The Applicant affirms the truthfulness and accuracy of the certifications and assurances it has made in the statements submitted herein with this document and any other submission made to FTA, and acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, 31 U.S.C. 3801 et seq., as implemented by U.S. DOT regulations, "Program Fraud Civil Remedies," 49 CFR part 31 apply to any certification, assurance or submission made to FTA. The criminal fraud provisions of 18 U.S.C. 1001 apply to any certification, assurance, or submission made in connection with the FTA formula assistance program for urbanized areas, and may apply to any other certification, assurance, or submission made in connection with any program administered by FTA.
In signing this document, I declare under penalties of perjury that the foregoing certifications and assurances, and any other statements made by me on behalf of the Applicant are true and correct.
Date: __________________ a. ___________________________________
Authorized Representative of Applicant
(Except in the case of projects under FTA's university and research training program authorized by 49 U.S.C. 5312(b), the Applicant's legal counsel is required to affirm the legal capacity of the Applicant.)
AFFIRMATION OF APPLICANT'S ATTORNEY
for ___________________________________________(Name of Applicant)
As the undersigned legal counsel for the above named Applicant I hereby affirm that the Applicant has authority under state and local law to make and comply with the certifications and assurances as indicated on the foregoing pages. I further affirm that, in my opinion, the certifications and assurances have been legally made and constitute legal and binding obligations on the Applicant.

I further affirm that, to the best of my knowledge, there is no legislation or litigation pending or threatened that might adversely affect the validity of these certifications and assurances, or of the performance of the project.
Furthermore, if I become aware of circumstances that change the accuracy of the foregoing statements, I will notify the Applicant and FTA.
Date: __________________ b. _________________________________
Applicant's Attorney
Date: __________________ c. _________________________________
If the Attorney's Affirmation is on File leave line "b" blank. The same Authorized Representative signs "a." and "c." See Procedures in introduction section. The Affirmation must be current and available when requested by FTA. Note: FTA reserves the right to require Attorney's signature on line "b."
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EXHIBIT III-1
Eligible Warranties
Item	Years	Mileage
(Whichever ocurs first)
Engine	2	200,000
Transmission	2	100,000
Drive axle	2	100,000
Brake system (excluding friction material)	2	50,000
Air conditioning system	2	n/a
Basic body structure	3	150,000
Structural integrity	7	350,000

EXHIBIT III-2
Timeframe for Bus Maintenance Facility
Milestone	Time Required
Planning Study, Environmental Impact Study, Conceptual design completed	6 to 12 months, for projects costing up to $10 million 12 to 24 months, for project costing up to $40 million
Design/Engineering	3 to 6 months, for projects up to $10 million 12 to 24 months, for projects costing up to $40 million
Construction	12 to 18 months, for project up to $10 million 24 to 36 months, for projects up to $40 million

EXHIBIT VIII-1
Project Scope - Sample No. 1
Scope
111-01	Bus- Rolling Stock
	Quantity: 6
Activity
11.12.02	Purchase 35-foot replacement buses with lifts
	Quantity: 4
11.13.03	Purchase 30-foot buses with lifts for service exoansion
	Quantity: 2
11.12.40	Spare Parts

EXHIBIT VIII-2
Project Scope - Sample No. 2
Scope
113-01	Bus- Purchase fare collection system (NOTE: In this example the activity code description appropriate for this Scope Code, Bus - Stations/Stops/Terminal, has been overwritten in order to provide a more accurate description.)
Activity
11.32.06	Purchase coin sorter
11.32.20	Purchase miscellaneous stationary fare collection equipment
11.42.09	Purchase fareboxes
	Quantity: 45
Scope
116-01	Bus Signal/Communications System
Activity
11.61.01	Design bus communications system
11.62.02	Purchase base stations
11.62.03	Purchase bus radios
	Quantity: 50
11.42.09	Purchase mobile radios
	Quantity: 20

EXHIBIT VIII-3
Presenting Subrecipient Information - Format Option No. 1
Scope
111-01	Purchase Rolling Stock and Related Equipment
	Quantity: 7
Activity
11.12.03	Purchase small lift-equipped replacement buses for Allegany County
	Quantity: 3
11.12.15	Purchase lift-equipped vans for Cumberland Transit System
	Quantity: 4
11.12.40	Spare components for buses
11.42.10	Purchase of fareboxes for buses
	Quantity: 3
11.62.03	Purchase of radios for vans
	Quantity: 4

EXHIBIT VIII-4
Presenting Subrecipient Information - Format Option No. 2
Scope
111-01	Rolling Stock for Allegany County
	Quantity: 3
Activity
11.12.03	Purchase small lift-equipped replacement buses for Allegany County
	Quantity: 3
11.12.40	Spare components for buses
11.42.10	Purchase fareboxes for buses
	Quantity: 3
Scope
111-02	Rolling Stock for Cumberland Transit System
	Quantity: 4
Activity
11.12.15	Purchase lift-equipped vans for Cumberland Transit System
	Quantity: 4
11.62.03	Purchase radios for vans
	Quantity: 4

EXHIBIT VIII-5
Combining Costs of Similar Items
SCOPE
132-01	Construct a 20-mile light rail line, including 20 stations and support facilities
Activities
13.23.03	Construction of line and structures
13.33.02	Construction of stations
13.43.02	Construction of operations/maintenance
13.53.01	Electrification and power distribution
13.63.01	Signals
13.33.06	Fare collection equipment acquisition and installation
13.75.91	Real estate acquisition
13.75.92	Relocation
SCOPE
137-01	Support services, in house and contracted, for engineering design, project and construction management, insurance, legal aid, etc.
Activities
13.71.02	Contracted final design services
13.71.04	Contracted construction management services
13.72.03	Grantee support services/project management
13.72.11	Other contracted support services
SCOPE
131-01	Purchase of Rolloing Stock
Activities
13.12.20	Purchase 50 light rail vehicles

EXHIBIT VIII-6
APPROVED PROJECT BUDGET
APPROVAL DATE: 6/09/95
GRANTEE:	REGIONAL TRANSIT ADMINISTRATION TRANSIT-TOWN, MARYLAND
PROJECT NO.: MD-03-0046-00 BUDGET NO.: 01
SCOPE			FEDERAL AMOUNT	TOTAL AMOUNT
111-01	BUS - ROLLING STOCK...... QUANTITY: 4		$450,750	$601,000
	ACTIVITY
	11.13.03	BUY 30-FT BUS FOR SERVICE EXPANSION QUANTITY: 4	435,000	580,000
	11.32.06	ACQ FARE COLLECTION EQUIPMENT QUANTITY: 5	3,750	5,000
	11.62.03	PURCHASE BUS RADIOS 30-FT BUSES QUANTITY: 3	12,000	16,000
SCOPE
113-01	BUS - STATIONS/STOPS/TERMINAL		18,740	25,000
	ACTIVITY
	11.13.10	PURCHASE PASSENGER AMENITIES QUANTITY: 5	18,750	25,000
TOTAL CAPITAL.............			469,500	626,000
TOTALS.........			469,500	626,000
		ESTIMATED NET PROJECT COST		626,000
		FEDERAL SHARE		469,500
		LOCAL SHARE		156,500
SOURCES OF FEDERAL FINANCIAL ASSISTANCE
FUNDING UZA: 240149 FUNDING UZA NAME: Transit-Town, Md.

ACCOUNTING CLASSIFICATION	FPC	DESCRIPTION	PREVIOUSLY APPROVED	AMENDMENT AMOUNT	TOTAL
95.37.03.31.2	00	FY 1995, §5309* CAPITAL		$460,500	$469,500

111-00	Bus - Rolling Stock
112-00	Bus- Transitways/Lines
113-00	Bus - Stations/Stops/Terminals
114-00	Bus - Support Equipment/Facilities
115-00	Bus - Electrification/Power Distribution
116-00	Bus - Signals/Communications Equipment
117-00	Bus - Other Capital Items
121-00	Rail - Rolling Stock
122-00	Rail - Transitways/Lines
123-00	Rail - Stations/Stops/Terminals
124-00	Rail - Support Equipment/Facilities
125-00	Rail - Electrification/Power Distribution
126-00	Rail - Signals/Communications Equipment
127-00	Rail - Other Capital Itmes
131-00	New Start - Rolling Stock
132-00	New Start - Transitways/Lines
133-00	New Start - Stations/Stops/Terminals
134-00	New Start - Support Equipment/Facilities
135-00	New Start - Electrification/Power Distribution
136-00	New Start - Signals/Communications Equipment
137-00	New Start - Other Capital Items
996-00	ADA/CAA - Non-add Scope

(GRANTEE)
PROJECT MILESTONE SCHEDULE (SAMPLE)
PROJECT NO.: XX-03-0162 MOST RECENT AMENDMENT NO.: N/A
TOTAL FTA SHARE: $3,300,000
MILESTONE SCHEDULE
Line Item Description	Milestone Description	Date
Purchase 10 30-ft buses	Bids advertised	Dec. 1993
	Contract	March 1994
	First bus delivery, acceptance	May 1994
	Last bus delivery, accptance	March 1995
	Contract completed (Final payment made)	May 1995
Renovate maintenance facility	Bids advertised	Jan. 1994
	Contracted awarded	March 1994
	Construction to begin	April 1994
	Contract completed (Final payment made)	Oct. 1994
Purchase/install communications equipment	Bids advertised	April 1995
	Contract awarded	June 1995
	Contract completed	Sept. 1995
Engineering design for new facility	Request for proposals	Jan. 1995
	Contract awarded	March 1995
	Design completed	June 1995
	Contract closed (Final payment made)	July 1995

REGION 1 Boston	Transportation Systems Center Kendall Square 55 Broadway, Suite 920 Cambridge, MA 02142-1093 Areas served: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut	Tel. No. 617-494-2055 Fax No. 617-494-2865
REGION 2 New York	26 Federal Plaza, Suite 2940 New York, NY 10278-0194 Areas served: New York, New Jersey, and U.S. Virgin Islands	Tel. No. 212-264-8162 Fax No. 212-264-8973
REGION 3 Philadelphia	1760 Market Street Suite 500 Philadelphia, PA 19103-4124 Areas served: Pennsylvania, Virginia, West Virginia, Delaware, Maryland, and District of Columbia	Tel. No. 215-656-6900 Fax No. 215-656-7260
REGION 4 Atlanta	1720 Peachtree Road, NW Suite 400 Atlanta, GA 30309-2439 Areas served: North Carolina, Kentucky, Tennessee, South Carolina, Alabama, Georgia, Florida, Missippi, and Puerto Rico	Tel. No. 404-347-3948 Fax No. 404-347-7849
REGION 5 Chicago	55 E. Monroe Street Suite 1415 Chicago, IL 60603-5704 Areas served: Illinois, Ohio, Minnesota, Wisconsin, Indiana, and Michigan	Tel. No. 312-353-2789 Fax No. 312-886-0351
REGION 6 Ft. Worth	524 East Lamar Boulevard Suite 175 Arlington, TX 76001-3900 Areas served: Texas, Oklahoma, Arkansas, Louisiana, and New Mexico	Tel. No. 817-860-9663 Fax No. 817-860-9437
REGION 7 Kansas City	6301 Rockhill Road Suite 303 Kansas City, MO 64131-1117 Areas served: Iowa, Kansas, Nebraska, and Missouri	Tel. No. 816-523-0204 Fax No. 816-523-0927
REGION 8 Denver	Columbine Place 216 16th St., Suite 650 Denver, CO 80202-5120 Areas served: Colorado, Utah, Montana, Wyoming, South Dakota, and North Dakota	Tel. No. 303-844-3242 Fax No. 303-844-4217
REGION 9 San Francisco	201 Mission Street Room 2210 San Francisco, CA 94105-1926 Areas served: California, Arizona (1), Nevada (2), Hawaii, Guam, American Samoa, and the Northern Mariana Islands	Tel. No. 415-744-3133 Fax No. 415-744-2726
REGION 10 Seattle	Jackson Federal Building 915 Second Avenue, Suite 3142 Seattle, WA 98174-1002 Areas served: Washington, Oregon, Idaho, and Alaska	Tel. No. 206-220-7954 Fax No. 206-220-7959