FTA Urbanized Area Formula Programs (Sections 5307 & 5339) State Programs Meeting August 2013

1. FTA Urbanized Area Formula Programs(Sections 5307 & 5339)State Programs MeetingAugust 2013 Adam Schildge / Sam Snead FTA Office of Transit Programs

2. FTA Urbanized AreaFormula Programs Agenda • Overview of FTA Formula Programs for Urbanized Areas • What’s New for FY 2013 and Moving Forward? • State Responsibilities for FTA Formula Programs • Methods of Allocation for Small UZA Funds • Discussion of Actual Example Methodologies

3. FTA Urbanized Area Formula Programs Formula Programs for Urbanized Areas Urbanized Area Formula Program (Section 5307) • For public transportation in urbanized areas (UZAs) • Modified under MAP-21 Bus and Bus Facilities Formula Program (Section 5339) • For bus capital projects in primarily urbanized areas, with some funds available to rural areas • Replaces the former 5309 Bus and Bus Facilities Discretionary Program State of Good Repair Formula Program (Section 5337)* • For repairing and replacing rail transit systems and high-intensity motor bus in urbanized areas • Replaces the former 5309 Fixed Guideway Modernization Program Formula Program for Seniors and Individuals with Disabilities (Section 5310)* • For enhancing mobility options for seniors and persons with disabilities • Consolidates the former 5310 and 5317 programs *Subject of Separate Session

4. FTA Urbanized AreaFormula Programs New for FY 2013 forward: Urbanized Area Formula Program (Section 5307) MAP-21 Program Changes • New Takedowns and Apportionment Factor • Eligibility for Job Access / Reverse Commute projects • New Limited Operating Assistance in Large UZAs (100-Bus Rule) • Extended Period of Availability (current plus five) MAP-21 & FY2013 Changes for all FTA Programs • 85 percent Federal Share for ADA/CAA vehicles (previously 83%) • Private Capital Investments in Vanpools as Local Match • No longer authorized to transfer funds to FHWA for highway projects • New Safety and Transit Asset Management Requirements (to be defined) • New 2010 Census Urbanized Area Designations* *Subject of Separate Session

5. FTA Urban Formula Programs New for FY 2013 forward: Bus and Bus Facilities Formula Program (Section 5339) New Program under MAP-21 • Two part apportionment: • Formula-based for UZAs, based on population and service factors • Fixed “national distribution” allocation to States and Territories ($1.25 million/$499,000) • FTA apportions funds to States for areas under 200,000 in population, and to Designated Recipients for areas 200,000 and above • States administer for all areas under 200,000 and have flexibility on where to use funds under the national distribution allocations; and flexibility in the suballocation of the small urbanized area amounts • Direct grantees only include States and Designated Recipients

6. Bus and Bus Facilities Program (5339) Section 5339 Program Overview: Purpose/Eligible Activities • Provides capital funding to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities. • Does not include operating or preventive maintenance Eligible Recipients / Sub-Recipients • Designated recipients (for under 200,000 = State ) that operate fixed route bus service or allocate funding to fixed route bus operators. • Subrecipients: Public agencies or private non-profit organizations engaged in public transportation, including those providing services open to a segment of the general public, as defined by age, disability, or low income. Match Requirement • Match is 80 Federal/20 Local • Exceptions: 85 Federal/15 Local for ADA and CAA-compliant vehicles • 90 Federal/10 Local for Vehicle-Related Equipment and Facilities

7. Bus and Bus Facilities Program (5339) Section 5339 Program Overview: Period of Availability • Four years (fiscal year that funds are apportioned plus 3 additional years) Funding Allocation • FY 2013 National Distribution amount of approximately $65.4 million allocated, with each state receiving approximately $1.25 million and each territory (including D.C. and Puerto Rico) receiving $499,000 • Remaining formula based upon population, vehicle revenue miles and passenger miles Transferability • Governor (or Governor’s Designee) may allocate 5339 formula apportionment for small UZAs among small UZAs • State may transfer national distribution funds ONLY to 5307/5311 • Formula apportionment for large UZAs cannot be transferred

8. FTA Urban Formula Programs State Responsibilities: Urbanized Area Formula Program (Section 5307) • Receive and allocate funds to transit operators for projects in small UZAs • Coordinate with transit providers, MPOs, and submit annual suballocation/split letter to FTA • May also transfer funds to rural areas and to large UZAs under certain circumstances • Method of allocation may differ among states • Pin Supplemental Agreement when direct grants are awarded Bus and Bus Facilities Formula Program (Section 5339) • Receive and allocate funds to transit operators for projects in small UZAs • Apply for grants on behalf of operators in small UZAs; oversee subrecipients • May transfer “national distribution” funds to 5311/5307, including for large UZAs • Method of allocation may differ among states

9. State Responsibilities for Small UZAs State Responsibilities: Suballocation: • States are responsible for choosing a process by which the funds will be distributed among small UZAs (Possible Methods: Formula Based; Discretionary; Blended, Program of Projects) • For 5339, States are responsible for applying for grant funds on behalf of eligible subrecipients in FTA’s electronic grant management system (TEAM) andare responsible for oversight of subrecipients in small UZAs • For 5307, States must provide a suballocation letter to the FTA region that identifies the direct recipients and UZAs that will receive and apply for funds • Some examples…

10. State Responsibilities for Small UZAs Florida Example 5307 • Governor’s Apportionment ($26 million) based on FTA formula and needs solicitation. • FDOTserves as Designated Recipient for 12 of 15 small UZAs. • 4 allocations (or portions) transferred to large UZAs in service area. • All UZAs are Direct Recipients. FDOT executes supplemental agreement in TEAM. 5339 • Funding insufficient to fund all 15 small UZAs ($2.6 million) and rural areas ($1.25 million). • No Direct Recipients in this program. FDOT must apply for and administer funding. • Florida will use a discretionary application process to make capital awards. • Issues: • Burdensome administrative requirements for states, rather than pass through to direct recipients • With only small formula allocations, how can a transit agency now build a facility?

11. State Responsibilities for Small UZAs New Mexico Example 5307 • Governor’s Apportionment ($2.5 million) based on FTA formula • NMDOT serves as Designated Recipient for all 4 of the small UZAs • All small UZAs are Direct Recipients. NMDOT executes supplemental agreement in TEAM 5339 • Funding for small UZAs = $470,008 • NM distributedthe small UZA 5339 apportionment proportional to the 5307 distribution. • One of the small urbansdeclined the funds. It was agreed to split this declined amount evenly among the remaining three small urbans. • Two year agreements being developed to potentially take advantage of “double” the funding and to amend the FY 14 5339 funds into the agreement once they are available. • Issues: • Administrative requirements for States • Insufficient amount of funds for capital replacement needs

12. State Responsibilities for Small UZAs ARIZONA Example • ADOT is the Designated Recipient for all 5307 and 5339 grant funds. • Governor assigns Direct Recipient status for the 5307 program • Small UZAs (Direct Recipients) and FFY2013 Apportionments:

13. State Responsibilities for Small UZAs ARIZONA Example – Creation of a Competitive Funding Pool • FFY2013: $4,176,490 (5307) • One-Timecapital or operating (5307 only) projects funds, with priority given to capital projects that show readiness to procure or construct. Limit = 3 projects per application cycle • Evaluation Criterion: • State of Good Repair 20% • Project Readiness 20% • Financial Readiness 20% • Agency Performance Measures 20% • Demonstrated Good Standing with FTA 10% • Stakeholder Support/ Involvement 10%

14. State Responsibilities for Small UZAs ARIZONA Example:

15. State Responsibilities for Small UZAs Open Discussion For further information: Adam Schildge (Section 5307): adam.schildge@dot.govor 202-366-0778 Sam Snead (Section 5339): samuel.snead@dot.gov or 202-366-1089