[Federal Register Volume 85, Number 128 (Thursday, July 2, 2020)]
[Notices]
[Pages 39971-39975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14249]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Fiscal Year 2020 Coronavirus Aid, Relief, and Economic
Security (CARES) Act Supplemental Apportionments, Allocations, Program
Information and Guidance
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice.
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SUMMARY: This notice provides program information and guidance for
implementation of the supplemental fiscal year (FY) 2020 apportionments
and allocations appropriated in the Coronavirus Aid, Relief, and
Economic Security (CARES) Act.
FOR FURTHER INFORMATION CONTACT: For general information about this
notice, contact Kimberly Sledge, Deputy Associate Administrator, Office
of Program Management, at (202) 366-2053. Please contact the
appropriate FTA Regional Office for any specific requests for
information or technical assistance. FTA Regional Office contact
information is available on FTA's website: www.transit.dot.gov. An FTA
headquarters contact for each program area is included in this notice.
FTA recommends stakeholders subscribe on FTA's website:
www.transit.dot.gov to receive email notifications when new information
is available.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. FY 2020 Funding for FTA Programs
A. Funding Available Under CARES Act, 2020
B. Oversight Takedown
C. CARES Act Apportionments: Data and Methodology
III. FY 2020 Program Highlights
A. Emergency Relief Docket
B. New Eligibilities and Increased Federal Share
IV. FY 2020 Program-Specific Information Under CARES Act
A. Urbanized Area Formula Program (49 U.S.C. 5307)
B. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
C. Public Transportation Emergency Relief Program (49 U.S.C.
5324)
V. Grant Requirements and Administration
A. Automatic Pre-Award Authority To Incur Project Costs
B. Federal Requirements
C. Insurance and Other Federal Funds
D. Grant Application Procedures
I. Overview
This document provides notice to stakeholders that FTA is
apportioning supplemental Fiscal Year (FY) 2020 Transit Infrastructure
Grants (TIG) funding made available by the CARES Act, 2020 (Pub. L.
116-136). In addition, this document contains important information
about statutory requirements and policy priorities for the Transit
Infrastructure Grants program. FTA previously posted frequently asked
questions and apportionment tables identifying funding amounts to
States, urbanized areas and tribes on FTA's website.
For the Transit Infrastructure Grants program, this notice provides
information on the FY 2020 supplemental appropriations funding levels,
funding availability, and the period of availability of funds. A
separate section provides information on pre-award authority as well as
other requirements applicable to the Transit Infrastructure Grants
program and grant administration. Finally, the notice includes a
reference to the apportionment tables on FTA's website that show the
amount of funding made available until the funds are expended.
Information in this document includes references to existing FTA
program guidance and circulars. Some information in FTA's guidance
documents and circulars that were issued prior to passage of the Fixing
America's Surface Transportation (FAST) Act (Pub. L. 114-94) may have
been superseded by the FAST Act, but these guidance documents and
circulars remain a resource for program management in most areas.
II. FY 2020 Funding for FTA Programs
A. Funding Available Under the CARES Act
The CARES Act, 2020 (Pub. L. 116-136) makes $25 billion in
supplemental funding available for FTA grantees to prevent, prepare
for, and respond to the coronavirus disease 2019 (COVID-19). The CARES
Act provides $25 billion in funding from the General Fund, including
$22,696,291,664 for Section 5307 Urbanized Area Formula Grants
(Urbanized Area Program) and $2,228,708,336 for Section 5311 Formula
Grants for Rural Areas (Rural Area Program). Current funding
availability for each program is identified in Section IV of this
notice and in Table 1 located on FTA's FY 2020 Apportionment web page:
www.transit.dot.gov/funding/apportionments.
B. Oversight Takedown
The CARES Act provides that not more than three-quarters of 1
percent, but not to exceed $75 million, of the funds shall be available
until expended for administrative expenses and ongoing program
management oversight and to generally provide technical assistance and
correct deficiencies identified in compliance reviews and audits as
authorized under sections 5334 and 5338(f)(2) of title 49, United
States Code.
C. CARES Act Apportionments: Data and Methodology
1. Apportionment Tables
FTA has posted tables displaying the funds available to eligible
states, tribes, and urbanized areas to www.transit.dot.gov/funding/apportionments. This website contains a page with the apportionment
tables for the CARES Act, links to prior year formula apportionment
notices and tables, and the National Transit Database (NTD) and Census
data used to calculate the apportionments.
2. Funding Assignment to Urbanized Area and Rural Area Formula Grant
Programs
The CARES Act provides for the apportionment of funds via the
Urbanized Area formula, the Rural Area formula, the State of Good
Repair formula, and the Growing States and High Density States formula
factors. The CARES Act also stipulates that the funding apportioned via
the formulas be made available under the existing Urbanized Area and
Rural Area Formula programs and procedures. Details on the
apportionment for both programs are found in the program specific
sections below.
3. NTD and Census Data Used in the CARES Act Apportionments
Consistent with past practices, the apportionments calculations for
Sections 5307, 5311, and 5337 rely on the most-recent transit service
data reported to the NTD, which for FY 2020 is the 2018 report year. In
some cases, where an apportionment is based on the age of the system,
the age is calculated as of September 30, 2019, the last day before FY
2020 began. Recipients or beneficiaries of either Section 5307 or 5311
funds are required to report to the NTD. Additionally, several transit
operators report to the FTA's NTD on a voluntary basis. For the 2018
report year, the NTD includes data from 941 reporters in urbanized
areas, 925 of
[[Page 39972]]
which reported operating transit service. The NTD also includes data
from 1,475 providers of rural transit service, which includes 134
Indian Tribes providing transit service.
The 2010 Census data is used to determine population and population
density for Section 5307 as well as rural population and rural land
area for the Section 5311 program. The formulas for Sections 5307,
5311, and 5311(c)(1) include tiers where funding is allocated based on
the number of persons living in poverty. The Census Bureau no longer
publishes decennial census data on persons living in poverty. As a
result, since FY 2013, FTA has used the data for this population
available via the Census' American Community Survey (ACS). The NTD and
Census data that FTA used to calculate the apportionments associated
with this notice can be found on FTA's website: www.transit.dot.gov/funding/apportionments.
The FY 2020 CARES Act apportionments use data on low-income
persons, persons with disabilities, and older adults from the 2013-2017
ACS five-year data set, which was published in December 2018. This data
represents the most recent five-year ACS estimates that are available
as of October 1 for the year being apportioned. As was the case in
prior years, data on low-income persons comes from ACS Table B17024,
``Age by Ratio of Income to Poverty in the Last Twelve Months.''
III. FY 2020 Program Highlights
A. Emergency Relief Docket
Pursuant to 49 CFR 601.42, on January 15, 2020 FTA announced the
establishment of an Emergency Relief Docket for calendar year 2020. See
https://federalregister.gov/d/2020-00539 for more information. After an
emergency or major disaster, if FTA requirements impede a grantee or
subgrantee's ability to respond to the emergency or major disaster, a
grantee or subgrantee may submit a request for temporary relief from
FTA administrative and statutory requirements. A grantee or subgrantee
seeking relief must submit a petition for waiver of FTA requirements at
https://www.regulations.gov for posting in the docket (FTA-2020-0001).
FTA encourages grantees, prior to submitting a request to the docket,
to review existing requests and responses already posted, as well as
FTA's COVID-19 Frequently Asked Questions web page, at https://www.transit.dot.gov/cares-act. In addition to the docket, FTA has
established an email address by which grantees may ask questions about
FTA requirements: [email protected].
For additional information on the Emergency Relief Docket, please
contact the appropriate FTA Regional Office.
B. New Eligibilities and Increased Federal Share
Activities eligible under the CARES Act include all activities
typically eligible under the Urbanized Area and Rural Area Formula
Programs undertaken beginning on January 20, 2020. Funds appropriated
through the CARES Act are also available for all funding recipients in
large urban, small urban, and rural areas for operating expenses (net
fare revenues) in response to the COVID-19 public health emergency as
described in Section 319 of the Public Health Service Act, including,
beginning on January 20, 2020, reimbursement for operating costs to
maintain service, purchase of personal protective equipment, and paying
for administrative leave of operations personnel due to reductions in
service and quarantining after potential exposure to COVID-19.
The Federal share for Transportation Infrastructure Grants is, at
the option of the recipient, up to 100 percent for all eligible
expenses.
IV. FY 2020 Program Specific Information Under CARES Act
A. Urbanized Area Formula Program (49 U.S.C. 5307)
Funds made available under this notice for the Transit
Infrastructure Grants program, apportioned through the Urbanized Area
Formula Program, provide financial assistance to designated recipients
in urbanized areas (UZAs) for all projects normally eligible under the
Urbanized Area Formula program such as capital investments in public
transportation systems, planning, job access and reverse commute
projects, and operating under limited circumstances. Under the CARES
Act, funds are available for operating assistance in both large and
small urbanized areas. There is no limit on the amount of CARES funds
that may be spent on operating activities.
For more information about the Urbanized Area Formula Program,
contact John Bodnar at (202) 366-9091 or [email protected].
1. Funding Availability
The CARES Act provides a total of $22,696,291,664 of supplemental
FY 2020 funding for the Urbanized Area Formula program. Of that amount,
$13,748,722,241 is apportioned according to the Urbanized Area Formula
(49 U.S.C. 5336), $7,485,374,559 is apportioned according to the State
of Good Repair formula (49 U.S.C. 5337), $862,846,477 is apportioned
according to the High Density States formula, and $599,348,387
according to the Growing States formula. FTA apportioned funds do not
include a take-down for the competitive Passenger Ferry Grant Program
or the State Safety Oversight Program.
Urbanized Area Formula Program
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5307 Urbanized Area Formula........................... $13,748,722,241
5337 State of Good Repair............................. 7,485,374,559
5340 High Density States.............................. 862,846,477
5340 Growing States................................... 599,348,387
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Total Apportioned................................... 22,696,291,664
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2. Period of Availability
Funds made available under the Urbanized Area Formula Program are
available until expended, though FTA encourages recipients to obligate
and expend CARES Act funds expeditiously in response to the coronavirus
public health emergency.
3. Operating Expenses Under the CARES Act
All FTA recipients, including those in urbanized areas of 200,000
or more in population, may utilize funds made available under the CARES
Act for operating expenses incurred to maintain service on or after
January 20, 2020. Such expenses include any operating expenses (net
fare revenues) incurred in response to the COVID-19 public health
emergency, as well as paying for administrative leave for operations
personnel due to reductions in service. Additionally, such funds may be
used to pay for leave for employees who are placed on administrative
leave due to quarantine or for employees placed on sick leave due to
COVID-19 infection. See Chapter IV of the Urbanized Area Formula
Program Guidance (FTA Circular 9030.1E) for details on eligible
operating assistance activities.
Note that service that might otherwise be characterized as charter
service, such as exclusive, closed door transportation of children to
meal sites, or of homeless individuals to shelters, paid for by a third
party, is eligible for reimbursement (net payment by a third party) if
the service is in direct response to COVID-19. For charter operations
lasting more than 90 days after the date a Governor declared a state of
emergency, the recipient should submit a waiver request to the
Emergency Relief docket.
Recipients are not required to incur operating expenses (or
preventive
[[Page 39973]]
maintenance expenses, which are operating expenses that may be
capitalized for the purposes of FTA grants) prior to grant award. A
recipient, at its discretion, may use operating expenses submitted,
accepted, and published by the NTD for the 2018 report year as
justification for its request for operating assistance, along with a
description of operations included in the grant. Draw down of funds
must reflect actual expenses. There is no limit on the amount of funds
made available under the CARES Act that may be used for operating
assistance.
B. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
The Formula Grants for Rural Areas Program provides formula funding
to States and Indian tribes for supporting public transportation in
areas with a population of less than 50,000. Funding under this notice
may be used for all activities typically eligible under the Rural Areas
Program, including reimbursement for operating costs to maintain
service during the COVID-19 public health emergency, the purchase of
personal protective equipment, and paying the administrative leave of
operations personnel due to reduction in service. Eligible
subrecipients include State and local governmental authorities, Indian
Tribes, private non-profit organizations, and private intercity bus
companies. Indian Tribes also are eligible direct recipients under the
Formula Grants for Rural Areas Program, both for funds apportioned to
the States and for projects apportioned with funds set aside for the
Tribal Transit Program.
For more information about the Formula Grants for Rural Areas
program, contact [Eacute]lan Flippin at (202) 366-3800 or
[email protected].
1. Funding Availability
The CARES Act provides a total of $2,178,708,336 of supplemental FY
2020 funding for the Rural Area Formula Program. Of that amount
$1,989,462,090 is apportioned according to the Rural Area formula and
$239,246,246 is apportioned according to the Growing States formula. Of
the amount appropriated, $20 million is made available for the
Appalachian Development Public Transportation Assistance Program and
$30 million is made available for the Public Transportation on Indian
Reservations formula program. FTA-apportioned funds do not include a
take-down for the Rural Transit Assistance Program or the Public
Transportation on Indian Reservations competitive program.
Grants for Rural Areas Formula Program
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5311 Rural Area Formula............................... $1,989,462,090
5311(c)(2) Appalachian Development.................... (20,000,000)
5311(c)(1) Public Transportation on Indian Res........ (30,000,000)
5340 Growing States................................... 239,246,246
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Total Apportioned................................... 2,178,708,336
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2. Period of Availability
The Formula Grants for Rural Areas Program funds apportioned in
this notice are available until expended, though FTA encourages
recipients to obligate and expend CARES Act funds expeditiously in
response to the coronavirus public health emergency.
3. Operating Expenses Under the CARES Act
All FTA recipients may utilize funds made available under the CARES
Act for operating expenses incurred as of January 20, 2020, at a 100
percent Federal share. Such expenses include any expenses incurred in
response to the COVID-19 public health emergency, as well as paying for
administrative leave for operations personnel due to reductions in
service. Additionally, such funds may be used to pay for leave for
employees who are placed on administrative leave due to quarantine or
for employees on sick leave due to COVID-19 infection. Additional
information on eligible operating assistance projects can be found in
Chapter III of Formula Grants for Rural Areas: Program Guidance and
Application Instructions.
Note that service that might otherwise be characterized as charter
service, such as exclusive, closed door transportation of children to
meal sites, or of homeless individuals to shelters, paid for by a third
party, is eligible for reimbursement (net payment by a third party) if
the operations are in direct response to COVID-19. For charter
operations lasting more than 90 days after the date a Governor declared
a state of emergency, the recipient should submit a waiver request to
the Emergency Relief docket.
Recipients are not required to incur operating expenses (or
preventive maintenance expenses, which are operating expenses that may
be capitalized for the purposes of FTA grants) prior to grant award. A
recipient, at its discretion, may use operating expenses submitted,
accepted, and published by the NTD for the 2018 report year as
justification for its request for operating assistance, along with a
description of operations included in the grant. Draw down of funds
must reflect actual expenses. There is no limit on the amount of funds
made available under the CARES Act that may be used for operating
assistance.
States may use methods other than those identified in their State
Management Plans to allocate CARES Act funds.
4. Appalachian Development Public Transportation Assistance Program (49
U.S.C. 5311(c)(2))
This program is a take-down under the Formula Grants for Rural
Areas Program to provide additional funding to support public
transportation in the Appalachian region. There are thirteen eligible
States that receive an allocation under this provision. The State
allocations are shown in the Formula Grants for Rural Areas Program
table posted on FTA's website at www.transit.dot.gov/funding/apportionments . A total of $20 million is available until expended
through the CARES Act.
For more information about the Appalachian Development Public
Transportation Assistance Program, contact [Eacute]lan Flippin at (202)
366-3800 or [email protected].
4. Public Transportation on Indian Reservations Program (49 U.S.C.
5311(c)(1))
The Public Transportation on Indian Reservations Program, or Tribal
Transit Program (TTP), is funded as a take-down from funds made
available for the Formula Grants for Rural Areas program. Formula
factors include vehicle revenue miles and the number of low-income
individuals residing on tribal lands (defined as American Indian Areas
and Alaska Native Areas). Eligible direct recipients are federally
recognized Indian tribes and Alaskan Native Villages providing public
transportation in rural areas. The TTP funds are allocated for grants
to eligible recipients for any purpose eligible under Formula Grants
for Rural Areas program or the CARES Act, which includes capital,
operating, planning, and job access and reverse commute projects.
Allocations are shown in the Public Transportation on Indian
Reservations Formula Program table posted on FTA's website at
www.transit.dot.gov/funding/apportionments. A total of $30 million is
available until expended through the CARES Act.
For more information about the Tribal Transit Program, contact Amy
Fong at (202) 366-0876 or [email protected].
[[Page 39974]]
C. Public Transportation Emergency Relief Program (49 U.S.C. 5324)
In addition to the funds appropriated under the CARES Act, on March
13, 2020, FTA announced that all recipients in large urban, small
urban, and rural areas that operate in states that have declared a
State of Emergency related to COVID-19 may use their existing Urbanized
Area and Rural Area Formula funding for both capital and operating
expenses related to COVID-19 response at an increased Federal share, as
authorized by the Public Transportation Emergency Relief Program (49
U.S.C. 5324). For information on how to use funds previously
apportioned under the Urbanized Area and Rural Area Formula programs
for COVID-19 response, please visit transit.dot.gov/coronavirus.
For more information about the Emergency Relief Program, contact
Thomas Wilson at (202) 366-5279 or [email protected].
V. Transit Infrastructure Grants
A. Automatic Pre-Award Authority To Incur Project Costs
Recipients have pre-award authority to incur project costs as of
January 20, 2020. Recipients should review the most recent version of
FTA's Apportionments Notice for further guidance on pre-award
authority.
B. Federal Requirements
Except as noted otherwise in this notice, all statutory and
administrative requirements pertaining to Urbanized Area and Rural Area
formula funds apply to grants utilizing funding made available through
the CARES Act, including the requirements for Department of Labor
certification found in Federal public transportation law (49 U.S.C.
5333(b)).
CARES Act funds used to pay for operating expenses in response to
COVID-19 do not need to be included in a Transportation Improvement
Plan (TIP) and/or Statewide Transportation Improvement Plan (STIP).
CARES Act funds used to pay for capital expenses for emergency relief
in response to COVID-19 do not need to be included in the TIP and/or
STIP unless the projects are for substantial functional, locational, or
capacity changes per Federal planning and assistance standards
regulations (23 CFR 450.326(e)(5), 23 CFR 450.218(g)(5)). Accordingly,
capital projects to prevent, prepare for, and respond to COVID-19 that
involve substantial functional, locational, or capacity changes must be
included in the TIP and/or STIP.
C. Insurance and Other Federal Funds
FTA funds may not be used to reimburse expenses that have
previously been reimbursed by insurance proceeds or other Federal
funds. Recipients are required to pursue claims for any losses covered
by insurance policies that are also eligible expenses under FTA's
programs. The recipient must report to FTA any insurance proceeds or
Federal funds received before or after FTA grant obligation that
duplicate any funding received through an FTA grant and make subsequent
adjustments to the grant prior to disbursement or return to FTA the
amount of funding determined to be duplicative. This includes any
proceeds from insurance policies that include applicable business
interruption coverage and funding received from the Federal Emergency
Management Agency. Any such funds returned to FTA will remain available
to the recipient for obligation in another grant for eligible expenses.
D. Grant Application Procedures
All applications for FTA funds should be submitted to the
appropriate FTA Office. All applications must be filed electronically.
FTA continues to award and manage grants and cooperative agreements
using the Transit Award Management System (TrAMS). To access TrAMS,
contact your FTA Office. Resources on using TrAMS can be found on FTA's
website at https://www.transit.dot.gov/TrAMS.
FTA regional staff are responsible for working with grantees to
review and process grant applications. For an application to be
considered complete and ready for FTA to assign a Federal Award
Identification Number (FAIN), enabling submission in TrAMS, and
submission to the Department of Labor, when applicable, the following
requirements must be met:
a. Recipient has registered in the System for Award Management
(SAM) and its registration is current with an active status. To
register an entity or check the status and renew registration, visit
the SAM website at https://www.sam.gov/SAM/.
b. Recipient's contact information, including Dun and Bradstreet
Data Universal Numbering System (DUNS), is correct. To request a DUNS
number, call Dun & Bradstreet at 1-866-705-5711 or visit the website at
http://fedgov.dnb.com/webform.
c. Recipient has properly submitted its annual certifications and
assurances.
d. Recipient's Civil Rights submissions are current.
e. After October 1, 2018, the grantee has a Transit Asset
Management plan in place that meets the requirements of the Transit
Asset Management regulation (49 CFR part 625), or is covered by a
compliant Group Plan.
f. Documentation is on file to support recipient's status as either
a designated recipient for the program and area or a direct recipient.
g. Funding is available, including any flexible funds included in
the budget, and split letters or sub allocation letters on file, where
applicable, to support the amount requested in the grant application.
h. The activity is listed in a currently approved Transportation
Improvement Program (TIP); Statewide Transportation Improvement Program
(STIP), or Unified Planning Work Program (UPWP) if applicable.
i. All eligibility issues are resolved.
j. Required environmental findings are made.
k. The application contains a well-defined scope of work, including
at least one project with accompanying project narratives, at least one
budget scope code and one activity line item, Federal and non-Federal
funding amounts, and milestones.
l. Milestone information is complete. FTA will also review status
of other open award reports to confirm financial and milestone
information is current on other open awards.
Other important issues that impact FTA grant processing activities
in addition to the list above are discussed below.
a. Award Budgets--Scope Codes and Activity Line Items (ALI) Codes;
Financial Purpose Codes
FTA uses Scope and ALI Codes in the award budgets to track
disbursements, monitor program trends, report to Congress, and to
respond to requests from the Inspector General and the Government
Accountability Office, as well as to manage grants. The accuracy of the
data is dependent on the careful and correct use of codes.
b. Designated and Direct Recipients Documentation
For its formula programs, FTA primarily apportions funds to the
designated recipient in large UZAs (areas over 200,000), or for areas
under 200,000 (small UZAs and rural areas), it apportions the funds to
the Governor, or its designee (e.g., State DOT). Depending on the
program, as described in the individual program sections found in
Section IV of this notice, further suballocation of funds may be
permitted to eligible recipients who may then apply directly to FTA for
the funding as direct recipients.
[[Page 39975]]
For the programs in which FTA may make grants to eligible direct
recipients, other than the designated recipient(s), recipients are
reminded that documentation must be on file to support: (1) The status
of the recipient either as a designated recipient or direct recipient;
and (2) the allocation of funds to the direct recipient.
Documentation to support existing designated recipients for the UZA
must also be on file at the time of the first application in FY 2020.
Split letters and/or suballocation letters (Governor's Apportionment
letters), must also be on file to support grant applications for direct
recipients. Split and/or suballocation letters must be updated to
include funds apportioned via this notice. Once suballocation letters
for FY 2020 funding are finalized, recipients should upload them as
part of the application into TrAMS.
The Direct Recipient is required to upload to TrAMS a copy of the
suballocation letter (Letter) indicating their allocation of funding,
for the appropriate fund program, when the applicant transmits their
application for initial review. The Letter must be signed by the
Designated Recipient, or as applicable in accordance with planning
requirements. If there are two Designated Recipients, both entities
must sign the Letter. The Letter must: (1) Indicate the allocations to
the respective Direct Recipients listed in the letter; (2) incorporate
language above the signatories to reflect this agreement; and (3) make
clear that the Direct Recipient will assume any/all responsibility
associated with the award for the funds. When drafting the Letter,
Designated Recipients may use the template language below:
``As identified in this Letter, the Designated Recipient(s)
authorize the reassignment/reallocation of [enter fund source; e.g.,
CARES Act funds] to the Direct Recipient(s) named herein. The
undersigned agree to the amounts allocated/reassigned to each Direct
Recipient. Each Direct Recipient is responsible for its application to
the Federal Transit Administration to receive such funds and assumes
the responsibilities associated with any award for these funds.''
The contents of this document do not have the force and effect of
law and are not meant to bind the public in any way. This document is
intended only to provide clarity to the public regarding existing
requirements under the law or agency policies.
Grantees should refer to applicable regulations and statutes
referenced in this document.
K. Jane Williams,
Acting Administrator.
[FR Doc. 2020-14249 Filed 7-1-20; 8:45 am]
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