FTA Program and Oversight Updates

Bruce RobinsonDeputy Associate AdministratorOffice of Program Management

August 12, 2014

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PROGRAM UPDATES

• MAP-21 Program Changes

• Program Guidance Status

• GROW AMERICA Proposed Changes

• Reauthorization Status

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Moving Ahead for Progress in the 21st Century Act

(MAP-21)• Signed into law by President Obama

on July 6, 2012

• Extends current law (SAFETEA-LU) through September 30, 2012

• Went into full effect October 1, 2012• Authorized programs for two years,

through September 30, 2014

MAP-21 Authorized Funding

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Urbanized Area Formula Grants, $4,398

New Starts/Core Capacity, $1,907

State of Good Repair Grants, $2,136

Bus and Bus Facilities Formula Grants; $422

Rural Formula Grants; $600

Growing States and High Density States Formula ; $519

National Transit Institute ; $5

National Transit Database ; $4

Enhanced Mobility of Seniors and Individuals with Disabilities; $255

Planning ; $127

Administrative Expenses; $104

Research, TCRP, Bus Testing; $80

Technical Assistance/Human Resources; $12

TOD Pilot; $10

FY 2013 Authorized Funding = $10.578 Billion

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Highlights of Program Changes

New• Safety Authority (5329)

• State of Good Repair Grants (5337)

• Asset Management (5326)

• Bus and Bus Facilities Formula Grants (5339)

• Public Transportation Emergency Relief (5324)

• TOD Planning Pilot Grants (20005(b) of MAP-21)

Repealed• Clean Fuels Grants (5308)

• Job Access and Reverse Commute (5316) [ JARC ]

• New Freedom Program (5317)

• Paul S. Sarbanes Transit in the Parks (5320)

• Alternatives Analysis (5339)

• Over-the-Road Bus (Sec. 3038 – TEA-21)

Consolidated

• Urbanized Area Formula Grants (5307) [ JARC ]

• Enhanced Mobility of Seniors and Individuals with Disabilities (5310) [New Freedom]

• Rural Area Formula Grants (5311)[ JARC]

Modified• Fixed Guideway Capital Investment Grants (5309)

• Metropolitan and Statewide Planning (5303 & 5304)

• Research, Development, Demonstration, and Deployment (5312)

• Technical Assistance and Standards (5314)

• Human Resources and Training (5322)

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What MAP-21 Means for FTA Grantees

• Steady and predictable funding• Consolidates certain transit programs

to improve their efficiency• Targeted funding increases

particularly for improving the state of good repair

• New reporting requirements• Requires performance measures for

SGR, planning, and safety

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Safety Program

• FTA granted new Public Transportation Safety Authority

• Provides additional authority to set minimum safety standards, conduct investigations, audits, and examinations

• Overhauls State Safety Oversight • New safety requirements for all

recipients

New

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State of Good Repair (SGR) Grants

• Provides formula based funding to maintain public transportation systems in a “state of good repair”

• Funding limited to fixed guideway investments (essentially replaces 5309 Fixed Guideway program)

• Defines eligible recapitalization and restoration activities

• New formula comprises: (1) former Fixed Guideway formula; (2) new service-based formula; (3) new formula for buses on HOV lanes

• Funding: $2.1 billion (FY 2013) authorized

New

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Transit Asset Management Provisions

• FTA must define “state of good repair” and develop performance measures based on that definition

• Establishes National Transit Asset Management system

• All transit agencies must develop their own asset management plan; covers all transit modes

New

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Bus and Bus FacilitiesFormula Program

• Provides capital funding to replace, rehabilitate, and purchase buses and related equipment, and to construct bus related facilities

• Replaces discretionary bus program• Funding: $420 million (FY 2013)

authorized

New

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Public Transportation Emergency Relief

• Assists States & public transportation systems with emergency related expenses

• Pays for protecting, repairing, or replacing equipment and facilities that are danger of failure or have suffered serious damage as a result of an emergency

• Funding: As appropriated by Congress

New

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TOD Planning Pilot

• Creates a discretionary pilot program for Transit Oriented Development planning grants

• Eligible projects are related to fixed guideway or core capacity projects as defined in section 5309

• Funding: $10 million (FY 2013) authorized

New

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Urbanized Area Formula Grants

• Funds capital, planning, plus JARC-eligible activities

• Creates new discretionary ferries grants

• New takedown for safety oversight• Funding: $4.8 billion (FY 2013)

authorized (including funds from the 5340 formula)

Consolidated

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Enhanced Mobility of Seniors and Individuals

with Disabilities• Consolidates current 5310 and New Freedom program eligibilities into single formula program

• Requires FTA to establish performance measures

• Funding: $255 million (FY 2013) authorized

Consolidated

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Rural Area Formula Grants

• Provides funding to States for the purpose of supporting public transportation in rural areas

• Incorporates JARC-eligible activities• Establishes $5 million discretionary and $25

million formula Tribal grant program• Establishes $20 million Appalachian

Development Public Transportation formula tier

• Funding: $630 million (FY 2013) authorized (including funds from the 5340 formula)

Consolidated

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Fixed Guideway Capital Investment Grants• Modifies New Starts and Small Starts

project approvals by consolidating phases and permitting streamlined review in certain circumstances

• Core Capacity: New eligibility for projects that expand the core capacity of major transit corridors

• Funding: $1.9 billion (FY 2013) General Fund Authorization

Modified

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Metropolitan and Statewide Planning

Program• Requires MPOs that serve TMAs to include transit agency officials in their governing structures

• Requires states, transit agencies, and MPOs to establish performance targets; and establishes a national performance measurement system

• Funding: $127 million (FY 2013) authorized

MODIFIEDModified

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Research, Development, Demonstration, and

Deployment • Separates research from technical assistance, training and workforce development

• Creates a competitive deployment program dedicated to the acquisition of low or no emission vehicles and related equipment, and related facilities

• Funding: $70 million (FY 2013) General Fund Authorization

Modified

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Technical Assistance and Standards

• Provides competitive funding for technical assistance activities

• Allows FTA to development voluntary standards and best practices

• Funding: $7 million (FY 2013) General Fund authorization

Modified

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Human Resources and Training

• Provides competitive grant program for workforce development

• Funding: $5 million/year General Fund authorization

• Continues the National Transit Institute, but only through a competitive selection process– Funded with separate $5 million/year

Trust Fund authorization

Modified

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Other Notable Provisions

• Buy America: Requires Annual Report to Congress on any transit waivers

• Veterans Preference: Includes preference language for transit construction projects

• Privatization: Includes several provisions for promoting private sector participation

• Bus Testing: Establishes performance standards and “Pass/Fail” requirements for new model buses– Including safety performance standards

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Program Guidance Status

9030.1E (5307 Urbanized Area Formula Program)

Final published January 16, 2014

9070.1G (5310 Enhanced Mobility of Seniors and Individuals with Disabilities Program)

Final published June 6, 2014

9040.1G (5311 Formula Program for Rural Areas)

Finalizing edits

5300.1 (5337 State of Good Repair Program)

Finalizing edits

5100.1 (5339 Bus and Bus Facilities Program)

Published for comment – July 30, 2014Comments due – September 29, 2014

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GROW AMERICA Act• A four-year, $302 billion surface transportation

authorization to replace MAP-21, which expires September 30, 2014.

• Invests $72 billion in public transportation over 4 years—nearly a 70% increase over MAP-21.

• Builds on MAP-21 priorities and strengthens commitment to safety, state-of-good-repair, efficiency, performance, and underserved populations.

• Addresses the challenges of a nation expected to grow by 100 million residents by 2050.

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FTA’s Reauthorization Priorities

• Significant “bump” in funding with new opportunities to modernize, expand bus and bus facilities, and grow bus rapid transit (BRT).

• Increases our commitment to drive down $86 billion transit maintenance backlog and address state-of-good-repair needs among bus and rail systems.

• Streamlines and accelerates regional transportation investments through better coordination among federal, state, and planning stakeholders.

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FTA’s Reauthorization Priorities

• Creates new ladders of opportunity for the American workforce by enhancing access to training in high-tech, operations, and construction jobs within the transit industry.

• Protects American jobs and domestic manufacturing by strengthening Buy America requirements over the four year GROW AMERICA Act period.

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Highlights of Program Changes

New

•Fixing and Accelerating Surface Transportation Program (5602)

•Rapid Growth Area Transit Program(5341)

•Local Hiring Provisions

Modified

• Bus and Bus Facilities (5339)

• State of Good Repair (5337)

• Human Resources and Training (Workforce Development) (5322)

• Metropolitan Transportation Planning (5303)

• Enhanced Mobility of Seniors and Individuals with Disabilities (5310)

• Formula Grants for Rural Areas (5311)

• Public Transportation Safety (5329)

Repealed or Consolidated

•No MAP-21 programs are repealed or consolidated in the proposed GROW AMERICA Act

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Program Funding Levels Over Time FY 2014 Enacted

FY 2015 President's Budget

GROW AMERICA TOTAL (FY 15-18)

TRANSIT FORMULA GRANTS (TF) $8,595,000,000 $13,914,400,000 $57,036,400,000

Transit Oriented Development 10,000,000 10,234,449 42,500,791 Planning Programs 128,800,000 131,819,706 547,410,195 Urbanized Area Formula Grants 4,458,650,000 4,563,182,694 18,949,620,707 Enhanced Mobility of Seniors and Individuals with Disabilities 258,300,000 264,355,823 1,097,800,755 Formula Grants for Rural Areas 607,800,000 622,049,823 2,583,198,107 Bus Testing Facility 3,000,000 3,070,335 12,750,237 National Transit Institute /Public Transit Institute 5,000,000 5,117,225 21,250,396 National Transit Database 3,850,000 3,940,263 16,362,805 State of Good Repair Grants 2,165,900,000 5,719,000,000 23,216,000,000 Bus and Bus Facilities Grants 427,800,000 1,939,000,000 7,822,005,339 Growing States and High Density States Formula 525,900,000 538,229,684 2,235,116,626

Administrative Expenses 1/ 105,933,000 114,400,000 492,400,000

CAPITAL INVESTMENT GRANTS (GF/TF) 2/ 1,942,938,000 2,500,000,000 10,775,000,000

TRANSIT RESEARCH AND TRAINING (GF/TF) 48,000,000 60,000,000 251,000,000

Workforce Development 2,000,000 20,000,000 80,000,000

EMERGENCY RELIEF PROGRAM 3/ (TF) 0 25,000,000 25,000,000

FAST (TF) NA 500,000,000 2,000,000,000

RAPID GROWTH AREA TRANSIT PROGRAM (TF) NA 500,000,000 2,175,000,000

TOTAL $10,841,871,000 $17,649,400,000 $72,337,400,000

1/Administrative Expenses under Transit Formula Grants account in FY 2015. Was previously funded from General Fund.2/ FY 2014 enacted level assumes using at least $190 million of prior year balances to fully-fund President’s request of $2.132 billion. 3/Represents balance of funds available after sequestration and transfers.

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Fixing and Accelerating Surface Transportation (FAST)• $500 million in competitively awarded

grants to state and local governments with innovative approaches to solving transportation problems.

• Foster more effective, coordinated investments in regional transportation priorities.

• Modeled after Dept. of Education’s “Race to the Top.”

• Jointly administered with $500 million requested annually by FHWA ($1 billion annual total program).

New

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Rapid Growth Area Transit• $500 million competitive discretionary grant

program would quickly establish bus rapid transit (BRT) service in areas with rapidly growing populations.

• Streamlined project evaluation criteria related to population and ridership growth and financial capacity to operate current and expanded service.

• Encourages multi-modal solutions to better integrate BRT with other existing, planned transit options.

• 50% local match to encourage early and sound local financial commitment.

• Up to 80% federal share by using FHWA Funds as local match.

New

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Local Hiring• The proposal supports local hiring as an

effective way to help men and women obtain local jobs and job training on federally funded transportation projects.

• Opportunities targeted in areas with high unemployment.

• Ensures local workers are given preference to participate on local transportation construction projects.

• Creates ladders of economic opportunity in under-served areas.

New

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Bus and Bus Facilities• Current program funds construction,

replacement and rehabilitation of buses and related facilities.

• Proposal increases funding by 354% from FY2014-FY2015, dramatically improving the ability to modernize the nation’s bus fleets. (70% formula/30% discretionary)

• Transit agencies may also compete for discretionary resources for large capital bus projects.

• Addresses funding shortfall and technical deficiencies in bus programs under MAP-21.

Modified

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Enhanced Mobility of Seniors and Individuals

with Disabilities• Current program funds mobility programs

for seniors and persons with disabilities.• Grants could now be made directly to local

government entities, removing the requirement to pass through a designated recipient first.

• The change would streamline the grant awards process, alleviate delays, and serve riders more efficiently.

MODIFIEDModified

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Rural Areas Program

• Current program provides capital, planning, and operating assistance for transit service implemented by states in rural areas.

• Proposal increases funding to tribes in recognition of serious need for additional transit service to low-income, rural residents.

• Each eligible recipient of tribal formula funds will receive a minimum of $20,000 annually.

MODIFIEDModified

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Public Transportation Safety

• FTA continues to implement safety authority authorized by MAP-21. Proposed changes:– An opt-out provision from the State Safety

Oversight program in states with fixed-guideway transit systems below a certain size or ridership level.

– FTA may impose civil penalties for violations of safety regulations, and criminal penalties for willful violations.

– The Secretary would gain emergency authority to issue orders to restrict or prohibit an unsafe condition or practice on transit systems.

MODIFIEDModified

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Workforce Development(Transit Research &

Training)• Current program supports innovative efforts to train a new generation of transportation workers.

• Proposal creates:– New Ladders of Opportunity program that

expands support for transit-focused workforce development programs that give priority to minorities, women, individuals with disabilities, veterans, and other groups.

– Public Transit Institute to deliver training courses to emerging transit workforce.

– Authority would allow recipients under sections 5307, 5337, and 5339 to use a percentage of funds for these activities.

MODIFIEDModified

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High-Performing MPOs• Current Metropolitan Planning

Organization (MPO) framework does not emphasize or reward regionally coordinated investments and planning.

• Incentivizes MPOs in large urban areas to coordinate and increase their technical capacity to undertake a performance-based approach linking investments to improvements in safety, infrastructure, congestion, and other factors.

MODIFIEDModified

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State of Good Repair• Current program provides two years

of predictable, needs-based formula funds for transit’s state-of-good-repair needs.

• Proposal significantly increases program funds by 164% percent from FY2014 to FY2015 to address an $86 billion maintenance backlog that continues to grow.

• This level of investment is necessary to tackle the U.S. infrastructure deficit.

MODIFIEDModified

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Buy America

• Current program ensures that certain content and final assembly of bus and rail systems are domestically sourced—preserving and creating American manufacturing jobs.

• Proposal gradually increases the domestic content requirement for manufacturing rolling stock components and subcomponents to 100% by 2018.

• The change would strengthen domestic manufacturing and innovation.

Modified

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Paying for the GROW AMERICA Act

• The President proposes renaming the Highway Trust Fund to a new Transportation Trust Fund (TTF), which will fund highways, transit, rail, and TIGER projects.

• The TTF will provide a source of predictable funding for surface transportation at an appropriate level for the next four years.

• The TTF will be capitalized with revenues from pro-growth tax reform will supplement the gas tax as a means of financing long-term critical investments in our nation’s transportation infrastructure.

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Current Status

• MAP-21 extended to May 31, 2015 at the 2014 authorized levels.

• FY 2015 Apportionments will depend on Appropriations.

Oversight Overview

• FTA’s Program Oversight

• State Management Review

• Tips on Preparing for Oversight Reviews

Overview of Program Oversight

• Oversight reviews confirm and promote grantee compliance with grant requirements.

• Fiduciary responsibility to prevent and identify improper payments and to ensure every dollar counts toward improving public transit.

• Oversight responsibilities are shared by HQ and regional offices.

• Contractor support for reviews.

Types of Oversight Reviews

• Broad Scope: Triennial Review, State Management Review

• Specialized: Financial Management Oversight Review, Procurement System Review, Americans with Disabilities Act Compliance Review, Disadvantaged Business Enterprise Compliance Review, Title VI of the Civil Rights Act Compliance Review, Equal Employment Opportunity Compliance Review, Cost Allocation Plan Review

• Single Audits

FY15 State Management Reviews

• Workshops anticipated in first or second quarter of FY15.

• 18 SMRs will be conducted, with site-visits commencing after the conclusion of workshops.

State Management ReviewTop Findings

1. SMP out of date/incomplete2. Inadequate oversight system3. Insufficient oversight of Title VI4. Inactive grants/untimely grant closeouts5. Incorrect FFR reporting6. No verification that excluded parties are not participating7. Insufficient oversight of procurement8. Late/incomplete progress reports9. Insufficient oversight of ADA service provision/training

requirements10. Insufficient oversight of route deviation service

Ways to Prepare• Understand and review program requirements,

i.e. regulations, circulars, grantee certifications and assurances.

• Attend FTA oversight workshops and NTD training.

• Maintain file in each Review Area with documentation that is responsive to review questions and documentation requests.

• Incorporate federal requirements into your agency’s policies and processes.

• Incorporate routine reviews of compliance with federal requirements into your agency’s internal assessments

Ways to Prepare

• Study previous review results for your agency and verify corrective actions remain fully implemented.

• Ask your regional office for technical assistance well in advance of review.

• Include agency staff in review process to gain information from review process.

• Close grants, when possible.

• Substantively respond to findings by due date or request an extension in advance.

FY15 SMR Grantees1. Rhode Island Public Transit Authority2. Vermont Agency of Transportation3. New Jersey Transit Corporation4. New York State Dept. of Transportation5. District Dept. Of Transportation, Department of Public Works6. Georgia Dept. of Human Resources7. Georgia Dept. Of Transportation-Office of Intermodal Programs8. Ohio Dept. Of Transportation9. Wisconsin Dept. Of Transportation/Bureau of Transit10. Louisiana Dept. Of Transportation & Development11. New Mexico Dept. of Transportation12. Nebraska Dept. of Roads13. Colorado Dept. of Transportation14. Wyoming Dept. Of Transportation15. Arizona Dept. Of Transportation16. Nevada Dept. of Transportation17. Idaho Transportation Department18. Oregon Dept. of Transportation