|(a) Purpose. Section 5311, Federal Transit Act (49
U.S.C. §5311), authorizes the Secretary of the U.S. DOT to make
grants for public transportation projects in rural areas. The department
has been designated by the governor to administer the §5311 program.
(b) Goal and objectives. The department's goal in administering
the §5311 program is to promote the availability of cost-effective,
efficient, and coordinated passenger transportation services to the
general public in rural areas using the most efficient combination
of financial and other resources. To achieve this goal, the objectives
of the department are to:
(1) promote the development and maintenance of a network
of general public transportation services, including intercity services,
in rural areas throughout the state, in partnership with local officials;
(2) fully integrate the §5311 program with other
federal, state, and local resources that are designed to serve rural
(3) improve the efficiency, effectiveness, and safety
of §5311 systems through the provision of technical assistance;
(4) include private sector operators in the overall
plan to provide public transportation services; and
(5) minimize negative impacts from changes in public
transportation district boundaries.
(c) Department role. The department acts as the designated
recipient for all §5311 funds apportioned to the state and has
an oversight responsibility for all rural transit services within
the state. The department, however, recognizes the subrecipients as
partners who shall retain control of daily operations. As the administering
agency, the department will:
(1) develop application materials and disseminate information
to prospective applicants and other interested parties;
(2) allocate the available program funds in a fair
and equitable manner as described in subsection (g) of this section
(the department will not provide §5311 funds to more than one
transit system in a geographical area);
(3) develop evaluation criteria and select projects
(4) prepare the state's annual program of projects
and funding application and submit that material to the FTA for approval;
(5) negotiate and execute contracts with local §5311
(6) prepare requests for federal reimbursement, and
process payment requests from §5311 subrecipients;
(7) monitor and evaluate the progress of ongoing transportation
operations, including compliance with federal regulations; and
(8) provide technical assistance to §5311 subrecipients
to aid them in improving transit services.
(d) Eligible subrecipients. State agencies, local public
entities, private nonprofit organizations, Native American tribes
and organizations, and operators of public transportation services
are eligible to receive §5311 funds through the department. Private
for-profit operators of public transportation services may participate
in the program through contracts with eligible subrecipients. An entity
must be a rural transit district to receive §5311 funds except
that private for-profit operators of public transportation services
and entities that are not rural transit districts are eligible to
receive §5311 funds through the department under the intercity
bus program, as set forth in subsections (g)(1) and (i) of this section.
(e) Eligible assistance categories. The following categories
of expenses are eligible for federal reimbursement under the §5311
(1) State administrative expenses. The department may
use up to 10 percent of the annual federal apportionment to defray
its expenses incurred for the administration of the §531l program.
These funds may also be used to provide technical assistance to subrecipients.
Technical assistance may include project planning, program development,
management development, coordination of public transportation projects,
and related research. Projects are solicited from subrecipients and
other interested parties. State administrative and technical assistance
expenses do not require a non-federal match.
(2) Capital expenses.
(A) Eligible items include:
(ii) vans or smaller accessible vehicles;
(iii) radios and communications equipment;
(iv) passenger shelters, bus stop signs, and similar
(v) wheelchair lifts and restraints;
(vi) vehicle rehabilitation, remanufacture, or overhaul;
(vii) preventive maintenance, including all maintenance
(viii) extended warranties that do not exceed the industry
(ix) the public transportation portion of ferry boats
(x) operational support such as computer hardware or
(xi) installation costs and vehicle procurement, testing,
inspection, and acceptance costs;
(xii) construction or rehabilitation of transit facilities,
including design, engineering, and land acquisition;
(xiii) facilities to provide access for bicycles to
transit facilities and equipment for transporting bicycles on transit
(xiv) the lease of equipment or facilities, provided
that the local subrecipient, with the concurrence of the department,
determines that a lease is more cost effective than the purchase of
equipment or facilities after considering management efficiency, availability
of equipment, staffing capabilities and guidelines on capital leases
as contained in 49 C.F.R. Part 639;
(xv) the capital portions of costs for service under
(xvi) joint development projects (FTA Circular 9300.1B,
or its latest version, provides guidelines for joint development projects);
(xvii) the introduction of new technology, through
innovative and improved products, into mass transportation;
(xviii) transit-related intelligent transportation
(xix) the provision of ADA paratransit service, which
shall not exceed 10 percent of the state's annual apportionment of
§5311 funds and shall be used only by subrecipients that are
in compliance with ADA requirements for both fixed route and demand
(xx) mobility management consisting of short-range
planning, management activities and projects for improving coordination
among public transportation, and other transportation service providers
carried out through an agreement entered into with a person, including
a governmental authority, but excluding operating expenses; and
(xxi) crime prevention and security.
(B) The capital cost of contracting includes depreciation,
interest on facilities and equipment, and those allowable capital
costs that would otherwise be incurred directly, including maintenance.
No capital assets (vehicle, equipment, or facility) that have any
remaining federal interest in them and no items purchased with state
or local government funds may be capitalized under the grant agreement.
(C) For reimbursement:
(i) federal funds may be used to reimburse up to 80
percent of eligible capital expenditures;
(ii) the federal share may increase up to 85 percent
of the net project cost for a project that involves acquiring vehicles
for the purpose of complying with the Americans with Disabilities
Act or the Clean Air Act;
(iii) the federal share may increase to up to 90 percent
for bicycle equipment or facilities projects or for incremental costs
related to compliance with the Clean Air Act or with the Americans
with Disabilities Act of 1990; and
(iv) the federal share may also increase in accordance
with 23 U.S.C. §120(b)(2) as determined by FTA regarding the
area of nontaxable Native American lands, individual and tribal, public
domain lands (reserved and unreserved), national forest, and national
parks and monuments, with eligibility standards for the higher federal
share being defined in FTA Circular 9040.1G, or its latest version.
(3) Project administrative expenses. Costs not directly
tied, but essential, to the operations of passenger transportation
systems may be reimbursed at up to 80 percent with federal funds.
The federal share may also increase in accordance with 23 U.S.C. §120(b)(2)
as determined by FTA regarding the area of nontaxable Native American
lands, individual and tribal, public domain lands (reserved and unreserved),
national forest, and national parks and monuments. Eligibility standards
for the higher federal share are defined in FTA Circular 9040.1G,
or its latest version.
(4) Operating expenses. Costs directly tied to systems
operations, such as costs for fuel, oil, and replacement parts, and
driver, mechanic, and dispatcher salaries, may be reimbursed at 50
percent of net operating costs. The federal share may also increase
in accordance with 23 U.S.C. §120(b)(2) as determined by FTA
regarding the area of nontaxable Native American lands, individual
and tribal, public domain lands (reserved and unreserved), national
forest, and national parks and monuments. Eligibility standards for
the higher federal share are defined in FTA Circular 9040.1G, or its
latest version. The local subrecipient must provide a match, either
in cash or with in-kind donations.
(5) Planning expenses may be reimbursed at up to 80
percent with federal funds. FTA Circular 8100.1C or its latest version
has a complete list of eligible activities, which include:
(A) studies relating to management, planning, operations,
capital requirements, and economic feasibility;
(B) evaluation of previous planning projects;
(C) work elements and related activities preliminary
to and in preparation for constructing, acquiring, or improving the
operations of facilities and equipment;
(D) safety, security, and emergency transportation
and evacuation planning; and
(E) coordinated public transit-human service transportation
(f) Local share requirements.
(1) FTA program funds cannot be used as the local share
required for §5311 grants.
(2) Cash from local or state programs, donations, or
unrestricted federal funds is allowed.
(3) In-kind contributions, volunteer services, and
donations are eligible as local share if the value is documented.
(4) For an intercity bus project that includes both
feeder service and an unsubsidized segment of intercity bus service
to which the feeder service connects, in-kind match may be derived
from the costs of a private operator for the unsubsidized segment
of intercity bus services for the operating costs of connecting rural
intercity bus feeder services. The private operator must agree in
writing to the use of the costs of the unsubsidized segment of intercity
bus services as in-kind match.
(5) Subrecipients may request transportation development
credits be used for all or part of the local match.
(g) Allocation of funds. As part of its administration
of the §5311 program, the department is charged with ensuring
that there is a fair and equitable distribution of funds within the
state (FTA Circular 9040.1G or its latest version). After subtracting
funds for state administrative expenses in accordance with subsection
(e)(1) of this section, the department will allocate §5311 funds
to local subrecipients in the following manner and order.
(1) Intercity bus allocation. Unless the chief executive
officer of the state or the executive officer's authorized designee
certifies to the Secretary of the U.S. DOT that the intercity bus
service needs of the state are being adequately met, the department
will allocate not less than 15 percent of the annual §5311 federal
apportionment for the development and support of intercity bus transportation
facilities and services providing access and connections to rural
areas. If it is determined that all or a portion of the set-aside
monies is not required for intercity bus service, those funds will
be applied to the formula apportionment process described in paragraph
(2) of this subsection. Procedures for determining if a certification
of adequacy is warranted are as follows.
(A) The department will review all data on intercity
bus service availability, including outstanding requests from intercity
operators and rural transit districts, and levels of service.
(B) The department will consult with affected intercity
bus service providers and rural transit districts.
(C) The department will consult with other state agencies
that have jurisdiction with respect to intercity bus regulation and
seek their recommendations as to the adequacy of current service.
(D) Based on the findings of subparagraphs (A), (B),
and (C) of this paragraph, the commission, the chief executive officer
of the state or the executive officer's authorized designee may certify
to the adequacy of intercity bus service.
(2) Need and performance allocation. Excluding the
amounts allocated under paragraph (1) of this subsection, the balance
of the annual §5311 federal apportionment, plus the remaining
balance of previous §5311 federal apportionments, not to exceed
$20,104,352, will be allocated to transit providers as described in
subparagraphs (A) and (B) of this paragraph.