[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Notices]
[Pages 3738-3739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1632]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Implementation of Section 360 of the Omnibus Appropriations Act 
for Fiscal Year 1999 (Public Law 105-277)

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of implementation of Section 360 of the Omnibus 
Appropriations Act for Fiscal Year 1999.

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SUMMARY: Section 360 of the Omnibus Appropriations Act for Fiscal Year 
1999 (Public Law 105-277) provides that FTA may allow certain 
recipients of Urbanized Area Formula Funds (Section 5307 of Title 49 
U.S.C.) in areas with populations 200,000 or over that provide service 
for elderly persons and persons with disabilities, with 20 or fewer 
vehicles, to use a portion of their Section 5307 funds for operating 
assistance. Because of changes made by the Transportation Equity Act 
for the 21st Century (TEA-21), such funds would normally not be 
available for Federal transit operating assistance.

    The chief executive or authorized official of a transit operation 
who believes his or her operation to be eligible for Federal transit 
operating assistance under Section 360 may submit a letter of intent to 
use the provisions of Section 360. The letter of intent should identify 
the transit property, address the criteria for eligibility listed 
herein, and identify the amount of funds that will be requested for 
Federal transit operating assistance for Fiscal Year 1999.

DATES: A letter of intent to apply for funds pursuant to Section 360 
must be received by the appropriate FTA Regional Office on or before 
April 15, 1999. FTA will make a determination of the amount that may be 
used for Federal transit operating assistance on or before May 14, 
1999.

ADDRESSES: Addresses of FTA Regional Offices are as follows:

Region 1--Boston. Transportation Systems Center, Kendall Square, 55 
Broadway, Suite 920, Cambridge, MA. 02142-1093
Tel. 617 494-2055
Region 2--New York. I Bowling Green, New York, NY 10274
Tel. No. 212 264-8162
Region 3--Philadelphia. 1760 Market Street, Suite 500, Philadelphia, PA 
19103-4124
Tel. 215 656-7100
Region 4--Atlanta. 61 Forsyth Street, S.W. Suite 17T50 Atlanta, GA 
30303-8917
Tel. 404 562-3500
Region 5--Chicago. 200 W. Adams Street, Suite 2410, Chicago, IL 60606-
5232
Tel. 312 353-2789
Region 6--Ft. Worth. 819 Taylor Street, Room 8A36 Ft. Worth, TX 76102
Tel. 817 978-0550
Region 7--Kansas City, MO. 6301 Rockhill Road, Suite 303 Kansas City, 
MO 64131-1117
Tel. 816 523-0204
Region 8--Denver. Columbine Place, 216 16th St., Suite 650 Denver, CO 
80202-5120
Tel. 303 844-3242
Region 9--San Francisco. 201 Mission Street, Room 2210 San Francisco, 
CA 94105-1800
Tel. 415 744-3133
Region 10--Seattle. Jackson Federal Building, 915 Second Avenue, Suite 
3142 Seattle, WA 98174-1002
Tel. 206 220-7954

FOR FURTHER INFORMATION CONTACT: Mr. Douglas A. Kerr, Director, Office 
of Program Guidance and Support, Federal Transit Administration (Tel. 
(202) 366-1656).

SUPPLEMENTARY INFORMATION: In the Omnibus Appropriations Act for Fiscal 
Year 1999 (Public Law 105-277 dated October 21, 1998, Congress added a 
provision that allows operating expenses of certain transit operators 
in areas with populations of 200,000 and over to be an eligible cost 
category under the Urbanized Area Formula Program, Section 5307 of 
Title 49 U.S.C. The Transportation Equity Act for the 21st Century 
(TEA-21) (Pub. L. 105-178) eliminated the eligibility of Federal 
transit operating assistance for urbanized areas with populations 
200,000 or over. The provision, Section 360 of the Omnibus Act, amends 
Section 3027 of the TEA-21 by adding the following language:

    ``(3) Services for Elderly and Persons with Disabilities. In 
addition to assistance made available under paragraph (1), the 
Secretary may provide assistance under section 5307 of title 49 
United States Code, to a transit provider that operates 20 or fewer 
vehicles in an urbanized area with a population of at least 200,000 
to finance the operating costs of equipment and facilities used by 
the transit provider in providing mass transportation services to 
elderly and persons with disabilities, provided that such assistance 
to all entities shall not exceed $1,000,000 annually.''

    The intent of Congress is to protect--``hold harmless''--from the 
loss of Federal transit operating assistance certain small providers in 
urbanized areas larger than 200,000 that provide demand-responsive 
service to accommodate elderly persons and/or persons with disabilities 
in areas in which there is no other transit service. The provision of 
Section 360 is designed not as a new window of opportunity to use 
Federal funds for transit operating assistance but as a corrective 
action to address a need the Congress identified in large urbanized 
areas in which there is no other transit service provided for elderly 
persons and persons with disabilities.

Amount Available

    Section 5307 funds made eligible for operating assistance by 
Omnibus Act amount to a total of $1 million per year. Such demand 
responsive service to elderly persons and/or persons with disabilities 
will be eligible for FTA operating assistance at the 50/50 Federal/
local share ratio.
    The $1 million made eligible for Federal transit operating 
assistance by Section 360 of the Omnibus Act is not additional money; 
nor is it a set-aside. Rather, this provision establishes an optional 
additional eligibility for the use of Section 5307 funds by past 
recipients of Section 5307 funds that qualify to use a portion of the 
Fiscal Year 1999 funds for operating assistance.

Funds for ADA-Related Paratransit

    The funds eligible for operating assistance under Section 360 of 
the Omnibus Act are not available to operate the paratransit services 
complementary to fixed route bus services that are required by the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12143). TEA-21, at 
Section 3027, amended Section 5302(a) of Federal transit law to expand 
the

[[Page 3739]]

definition of an eligible FTA-assisted capital project to include costs 
for operating ADA-related complementary paratransit in any sized UZA, 
for any grant applicant that is in compliance with ADA. Hence, 
providers of ADA-related paratransit service may apply for funds at the 
80/20 Federal/local share ratio in accordance with Section 3027 of TEA-
21. Up to 10 percent of the urbanized area's apportionment under 
Section 5307 of Title 49, Chapter 53, may be used for the ADA-related 
costs. The option to use and the allocation of the 10 percent is to be 
made by the local Metropolitan Planning Organization.

Critera

    The criteria by which FTA will allow eligibility for Federal 
transit operating assistance under the provisions of Section 360 of the 
Omnibus Appropriations Act for Fiscal Year 1999 are as follows:
    1. The operator provides demand responsive service exclusively for 
elderly persons and/or persons with disabilities. Such service does not 
include service for the general public.
    2. The number of demand responsive vehicles, operated in maximum 
service, is 20 or fewer.
    3. The operator provides the demand responsive service in a UZA 
with a population of 200,000 or over.
    4. The demand-responsive service provided is not ADA paratransit 
service complementary to fixed route service.
    5. Neither fixed-route nor ADA-related paratransit service 
complementary to fixed-route service is provided in the service areas 
serve by the demand responsible service for which Federal transit 
operating assistance will be requested.
    6. The transit provider, in at least one of Federal Fiscal Years 
1996, 1997, or 1998, has received an FTA grant for operating assistance 
under Section 5307 of Title 49 U.S.C. or has received operating 
assistance under Section 5307 passed through from another FTA grantee 
and has reported the assistance in the National Transit Database. An 
exception to the criteria of reporting the funds received by a pass 
through arrangement would be the case in which FTA has allowed an 
exemption to the reporting because the transit operator operated nine 
or fewer vehicles.
    7. The Metropolitan Planning Organization concurs in the use for 
operating assistance of a portion of the urbanized area's Section 5307 
apportionment.

Calculation

    After determining a transit provider's eligibility to use Section 
5307 funds for operating assistance, and taking into account the total 
amounts of Federal transit operating assistance being requested, FTA 
will determine the amount for which the recipient is eligible. 
Determination will be made on the basis of the recipient's past 
receipt--either directly or indirectly--of Federal transit operating 
assistance under Section 5307 of Title 49 U.S.C. The transit operator 
will not receive more than the maximum the operator has received in any 
one of the Federal Fiscal Years 1996, 1997, or 1998.
    If the total amount requested by all eligible recipients pursuant 
to Section 360 is greater than $1 million, FTA will calculate the 
amount eligible to each eligible recipient on the basis of Federal 
transit operating assistance obligated to or passed through to the 
particular eligible recipient in the past, as a proportion of the total 
amount of Federal transit operating assistance obligated to or passed 
through to all of the eligible recipients requesting eligibility under 
Section 360.

FTA Grant Application Requirements

    All of the normal FTA grant requirements regarding Federal transit 
operating assistance apply, as described in Appendix D of FTA Circular 
9030.1C, ``Urbanized Area Formula Program: Grant Application 
Instructions.'' dated October 1, 1998. Understanding that amendments to 
Transportation Improvement Programs (TIP) and to State Transportation 
Improvement Programs (STIP) will have to be made, FTA will not require 
that the funds be programmed in a TIP before the letter of intent is 
received. Use of the funds under Section 360 must be programmed in an 
approved TIP and an approved STIP, however, before FTA can obligate 
funds.

Letter of Intent

    The letter of intent, which must be received by the appropriate FTA 
Regional Office on or before April 15, 1999, should address the 
following:
    1. Each criterion of eligibility listed.
    2. The amounts of Federal transit operating assistance received, 
either directly or indirectly, in each of Federal Fiscal Years 1996, 
1997, and 1998.
    3. The amount of Fiscal Year 1999 funds that will be requested for 
Federal transit operating assistance. Such amount may not be greater 
than the maximum amount received in any one of Federal Fiscal Years 
1996, 1997, or 1998.

    Issued on: January 20, 1999.
Gordon J. Linton,
Administrator.
[FR Doc. 99-1632 Filed 1-22-99; 8:45 am]
BILLING CODE 4910-57-M