Frequently Asked Questions
These FAQs do not have the force and effect of law and are not meant to bind the public in any way. These FAQs are intended only to provide clarity to the public regarding existing requirements under the law or agency policies. FTA recipients and subrecipients should refer to FTA’s statutes and regulations for applicable requirements.
Answer:
The Capital Investment Grants (CIG) program is a discretionary grant program unlike most others in government. Instead of an annual call for applications and selection of awardees by the Federal Transit Administration (FTA), the law requires that projects seeking CIG funding complete a series of steps over several years to be eligible for funding. For New Starts and Core Capacity projects, the law requires completion of two phases in advance of receipt of a construction grant agreement – Project Development and Engineering. For Small Starts projects, the law requires completion of one phase in advance of receipt of a construction grant agreement – Project Development.
Answer:
Refer to the following three scenarios. Note that in each, applicants need to ensure that other federal funds (whether from FTA or another federal agency) are not used as match unless allowed by statute.
a. Agency X works with Key Partner Y. The project will license technology ABC. The project costs are broken down as 1) Licensing costs $80,000, and 2) Technical Installation and Integration $20,000. If the installation and integration is performed by key partner Y as an in-kind service – may that count towards the non-Federal match?
Answer: An activity must be included in the project scope to count toward the required match. If technical installation and integration are included in the project scope and not funded from another Federal source, they can count toward the required match. It must be documented properly in both agencies and in the Federal Financial Reports (FFR).
b. Agency X works with Key Partner Y. The project will create a mobility management partnership. The project costs are broken down as 1) Mobility Management Services $80,000, and 2) Marketing & Outreach $20,000. If the marketing and outreach is performed by key partner Y as an in-kind service – may that count towards the non-Federal match?
Answer: Similar to #a, if marketing and outreach are included in the project scope and not funded from another Federal source, they can count toward the required match. Again, this must be properly documented and reported by all institutions involved.
c. Agency X partners with Key Partner Y to create first mile/last mile service. Can fares generated by the service be used toward local match?
Answer: According to FTA Research, Technical Assistance, and Training Programs: Application Instructions and Program Management Guidelines (Circular 6100.1E), the applicant may request authorization from FTA to use any potential program income, such as farebox revenues, to meet the cost-sharing or matching requirement of the agreement. Note that the 20% match requirement must be met by the end of the project performance period, or the agency must make up any difference with cash.
d. Agency X partners with Key Partner Y to coordinate services. Can revenue generated from app based advertisement and on-vehicle advertisement be used as non-federal match?
Answer: Similar to #c, the applicant may request authorization from FTA to use any potential program income, in this case, advertisement revenue, to meet the cost-sharing or matching requirement of the agreement. Note that the 20% match requirement must be met by the end of the project performance period, or the agency must make up any difference with cash.
e. Are transportation development credits (TDC’s) eligible as a local cost share for the IMI opportunity?
Answer: Yes, TDCs are eligible as local match for the IMI opportunity.
Answer:
Funds must be obligated within three fiscal years after the fiscal year the funds were made available. For example, if the funds are made available in the fall of 2020, the funds must be obligated by September 30, 2023.
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The Federal Transit Administration’s (FTA) Final Rule on Private Investment Project Procedures (PIPP) establishes procedures that allow recipients of FTA funds to identify perceived impediments to the use of public-private partnerships (P3s) and private investment in public transportation capital projects either proposed or under construction and in the Statewide Long-Range Transportation Plan or the Metropolitan Transportation Plan, and seek a waiver or modification of such impediments.
Answer:
The HOPE program provides funding for planning, including a planning and environmental linkages study that advances the environmental analysis and review process as part of the metropolitan planning process engineering, technical studies, or financial plans that improve transit services or facilities in areas of persistent poverty.
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For areas under 200,000 in population, the governor designates a State agency responsible for administering the funds and notifies the FTA Regional Office in writing of that designation. Unless there is a change in State agency, FTA will assume the existing designated recipient for the section 5310 program (under SAFETEA-LU) will continue to administer the program for the areas under 200,000.
In areas over 200,000, a designated recipient will need to be identified. FTA will need to receive designated recipient information before a grant can be awarded. These letters should be submitted to the FTA Regional office. Designated recipients in the large urbanized areas may be the section 5307 designated recipients, other direct recipients of 5307 funds, metropolitan planning organizations, or the section 5317 New Freedom Program. Areas may also elect to designate the State DOT as the designated recipient in a large urbanized area. Designations must be made in accordance with the planning process under 49 U.S.C. 5303, 5304, and 5306, by the Governor of a State, responsible local officials, and publicly owned operators of public transportation. Designated Recipients for large urbanized areas will be responsible for receiving and apportioning amounts under the Section 5310 program to urbanized areas of 200,000 or more in population. This includes applying for and managing the grant and overseeing subrecipients in these areas.
Answer:
Project sponsors wishing to enter the Project Development phase as a New Starts, a Small Starts, or a Core Capacity project should submit a letter to the Associate Administrator for FTA’s Office of Planning and Environment that includes the following information:
- The name of the study sponsor, any partners involved in the study, and the roles and responsibilities of each
- Identification of a project manager and other key staff that will perform the Project Development work
- A brief description and clear map of the corridor being studied including its length and key activity centers
- The transportation problem in the corridor or a statement of purpose and need
- Identification of a proposed project if one is known and alternatives to that project if any are being considered
- Identification of a cost estimate for the project, if available
- Identification of whether the project would be a New Starts, Small Starts, or Core Capacity project
- A brief description of current levels of transit service in the corridor today
- Electronic copies of or weblinks to prior studies done in the corridor, if any
- The anticipated cost to complete Project Development, not including the cost of any work done prior to officially entering the Project Development phase
- Identification of the non-CIG capital funding available and committed to conduct the Project Development work
- Documentation demonstrating commitment of funds for the Project Development work (e.g. Board resolutions, adopted budgets, approved Capital Improvement Programs, approved Transportation Improvement Programs, letters of commitment)
- If the project is a New Starts or Core Capacity project, an anticipated draft timeline for completing the following activities (which should demonstrate the ability to complete the Project Development work within 2 years as prescribed in FAST):
- compliance with NEPA and related environmental laws;
- selection of a locally preferred alternative;
- adoption of the locally preferred alternative in the fiscally constrained long range transportation plan;
- completion of the activities required to obtain a project rating under the evaluation criteria outlined in the law
- completion of the readiness requirements for entry into Engineering; and
- anticipated receipt of a construction grant agreement from FTA
- anticipated start of revenue service
- If the project is a Small Starts project, an anticipated timeline for completing the following activities:
- compliance with NEPA and related environmental laws;
- selection of a locally preferred alternative;
- adoption of the locally preferred alternative in the fiscally constrained long range transportation plan;
- completion of the activities required to obtain a project rating under the evaluation criteria outlined in the law; and
- anticipated receipt of a construction grant agreement from FTA
- anticipated start of revenue service
Answer:
The form does not allow rich text formatting in the fields on the Supplemental Form. We recommend applicants to use just normal alphabet, numbers and normal special characters. Please keep in mind that applicants may attach materials and documentation that supports the proposal submission, including graphics, maps, letters of support and any other documents, as appropriate. Applicants are encouraged to clearly reference any relevant attachment in the supplemental form.
Answer:
No. FTA cannot discuss specific applications once the debrief period ends. Agencies have 30 days to request a debrief once the selected projects are published in the Federal Register Notice.
Answer:
The PIPP is intended to establish a streamlined process that allows project sponsors to seek waivers or modifications of FTA requirements in order to:
- Accelerate the project development process;
- Attract private investment;
- Increase project management flexibility; and
- Lead to more innovation, improved efficiency, and/or new revenue streams.
Answer:
An area of persistent poverty is a county with 20 percent or more of the population living in poverty over the 30 years preceding the date of enactment of the Further Consolidated Appropriations Act, 2020, or December 20, 2019, as measured by the 1990 and 2000 decennial census and the most recent Small Area Income and Poverty Estimates. Alternatively, data to support eligibility may also be from any census tract with a poverty rate of at least 20 percent as measured by the 2013-2017, 5-year data series available from the American Community Survey of the Census Bureau. See the map and list of areas that meet those criteria
Answer:
The eligible subrecipients for “traditional” 5310 projects are the same as those permitted under Section 5310 as authorized under prior legislation. Specifically, eligible subrecipients are: 1) A private nonprofit organization; OR 2) a state or local governmental authority that is approved by a state to coordinate services for seniors and individuals with disabilities or certifies that there are no nonprofit organizations readily available in the area to provide the service.
The intent of the 55 percent requirement and the specific subrecipients eligible to administer capital projects designed to meet the special needs of seniors and individuals with disabilities when public transportation is insufficient, unavailable, or inappropriate, is to preserve the “status quo” of the program as authorized under prior legislation.
However, given the blending of the New Freedom program and eligibility under MAP-21, the eligible subrecipients for all “Other” eligible Section 5310 activities include a state or local governmental authority, a private nonprofit organization, or an operator of public transportation that receives a Section 5310 grant indirectly through a recipient. There is no required certification or designation required for state or local governmental authorities to administer these other types of eligible projects.
Answer:
Upon receipt of a request to enter Project Development as a New Starts, Small Starts or Core Capacity project, FTA will review the materials provided by the project sponsor. If anything is unclear, or documentation from the list above is missing, FTA will follow-up with the project sponsor via email. Upon receipt of complete information from the project sponsor, FTA will send a letter within 45 days indicating the sufficiency of the information for entry into Project Development to both the project sponsor and Congress per the direction in the FAST Act.
A letter from FTA indicating the project may enter Project Development does not imply a funding commitment or endorsement of the project by FTA, and should not be construed as a major milestone. Instead, it merely indicates the project sponsor may begin the initial stage of the process.
Answer:
Yes. In a large urbanized area (area over 200,000), the designated recipient for the Section 5307 program can be the designated recipient for the Section 5310 program in the large urbanized area. A designation letter is still required before a 5310 grant can be awarded. The state is the only eligible designated recipient (and grant applicant) for rural and small urbanized areas (areas under 200,000 in population).
Answer:
There is no set limit in the Notice of Funding Opportunity (NOFO) with respect to the number of proposals from the same applicant.
Answer:
An eligible project is one that will test an innovative project delivery technique that is prohibited by current FTA regulations or FTA policy. A PIPP waiver request cannot be used to waive or modify statutory requirements. However, if a project sponsor believes an FTA regulation or policy that implements a statutory requirement impedes P3s or private investment, and has a means of compliance with a statutory requirement that is not consistent with the FTA regulation or policy but will remove the perceived impediment to a P3, the project sponsor may propose an alternative method of compliance.
The waiver or modification request must demonstrate that the experimental feature, if approved, will advance the goals of the PIPP. FTA encourages applicants to discuss potential waiver or modification requests with FTA’s private sector liaison or the relevant FTA Regional Office prior to applying.
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Direct recipients receive funding directly from FTA. Designated recipients have been designated by the state governor or his/her designee to receive and/or sub-allocate.
Answer:
Eligible applicants are defined as eligible recipients or sub-recipients Section 5307, Section 5310 or Section 5311 funding. A State Department of Transportation may apply on behalf of eligible entities within its state.
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During Project Development, prior to the completion of the environmental review process required under the National Environmental Policy Act (NEPA), FTA will work with project sponsors to assess the strengths and weaknesses of alternatives still under consideration and provide technical assistance on how to meet the requirements to enter Engineering. Technical assistance may include workshops or other methods focusing on the readiness requirements to enter Engineering.
Formal oversight will generally begin at the completion of NEPA and will be tailored based on the how far the project has advanced in design, the complexity of the project, and the project sponsor’s capability to undertake engineering and construction.
Answer:
Eligible applicants include designated recipients, states, local governmental authorities, and Indian tribes. Eligible subrecipients may partner with eligible recipients but cannot be the primary applicant.