Curriculum for New State DOT Transit Grant Managers in Administering Federal and State Transit Grants (2014)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

KEY CONCEPTS • Introduction to Public Transit • A Brief History of Federal Transit Funding • Regulatory Structure • The Role of the States in FTA Programs • The Programs: S. 5307, 5310, 5311, 5339 • FTA Cross-Cutting Requirements DEFINITIONS MAP-21: the acronym for the Moving Ahead for Progress in the 21st Century Act, the current authorizing legislation for federal transit funding. Congress establishes the legal authority to commence and continue FTA programs through authorizing legislation covering several years. On July 6, 2012, President Obama signed Moving Ahead for Progress in the 21st Century, reauthorizing surface transportation programs through fiscal year 2014. Each reauthorization amends the Federal Transit Laws codified in 49 USC Chapter 53. MAP-21 took effect on October 1, 2012. Public Transportation (also called transit, public transit, or mass transit): defined in MAP-21 as “regular, continuing shared-ride surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income.” The MAP-21 definition also specifically excludes Amtrak INTRODUCTION A subset of the U.S. Department of Transportation, the Federal Transit Administration (FTA) provides federal funding for new and existing public transportation service across the country. For someone new to the field, getting a handle on the requirements of multiple FTA funding programs (not to mention FTA jargon and acronyms) can be overwhelming. This module provides a roadmap to FTA programs administered by states, and context for later and more in-depth modules. IMPORTANCE FOR STATE DOT STAFF FTA provides funding under a variety of formula based and discretionary programs. As a recipient of program funding, the state is responsible for administering and managing grants in compliance with all relevant federal regulations. The state is also responsible for overseeing the funds that it passes through to its subrecipients. The state must ensure that subrecipients comply with FTA requirements; the requirements flow through the state along with the funding. LEVEL I - PAGE I-1 Module 1.1: Introduction to FTA Grants

intercity passenger rail transportation, intercity bus service, charter bus service, school bus service, sightseeing service, courtesy shuttle service for patrons of specific establishments, and intra-terminal or intra-facility shuttle services. Transit Agency/System: an entity (public or private) responsible for administering and managing transit activities and services. Transit agencies can directly operate transit service or contract out for all or part of the total transit service provided. When responsibility is with a public entity, it is a public transit agency. When more than one mode of service is operated, it is a multimodal transit agency. LEVEL II PREVIEW Introduction to Public Transit Public transit takes many forms, often referred to in industry jargon as modes, such as local bus service, express bus commuter rail, subway, light rail, bus rapid transit, curb-to-curb paratransit, etc. Most modes fall within one of two major categories of transit service design: fixed-route service and demand-response service. Fixed-route service is provided on a repetitive, fixed schedule basis along a specific route at specific locations, while demand-response is based on individual passenger requests for door-to-door or curb-to-curb transportation. When it comes to FTA funding administered at the state level, public transportation generally falls into three major categories in terms of target market: 1) urban transit, 2) rural transit, and 3) specialized transportation. A Brief History of Federal Transit Funding Federal financial assistance for public transportation has a relatively short history, beginning in 1964 when Lyndon Johnson signed the Urban Mass Transportation Act into law. By authorizing funding in support of public transportation, the Johnson administration was attempting to revitalize deteriorating urban transit systems. Shortly after came the creation of the U.S. Department of Transportation and the Urban Mass Transportation Administration (UMTA), changed to FTA in 1991. Regulatory Structure Module 1.1: Introduction to FTA Grants LEVEL I - PAGE I-2

Laws and regulations are the basis for FTA funding assistance, and they are referenced time and time again in FTA resources. Also known as federal statutes, laws like MAP-21 are enacted by Congress and codified in the United States Code (USC). These laws are the top rung in a hierarchy of FTA requirements. Next are federal regulations, issued by agencies like FTA that get their authority to regulate from the enabling statutes. Regulations are designed to interpret the statutes and detail implementation and enforcement. The FTA Master Agreement is the next level in the hierarchy. Updated annually, its purpose is to detail terms and conditions applicable to all grant recipients. The Master Agreement also spells out that as recipients, states are responsible for oversight of their subrecipients. Ranking lowest in the hierarchy is administrative guidance (e.g. directives, orders, guidelines, FTA circulars, and policy letters). These provide instructions to grantees or other stakeholders on how FTA grants will be administered. The Role of the States in FTA Programs States must develop and submit a State Management Plan (SMP) to FTA for the S. 5310 and S. 5311 programs (either stand- alone plans or combined). The SMP details the policies and procedures used to administer the programs and serves as a guide for subrecipients. States must also submit a Program of Projects (POP) to FTA. The POP lists all subrecipients and identifies the projects for which the state is applying for financial assistance. In addition, states must ensure that their subrecipients are involved in a coordinated public transit-human services transportation planning process. The FTA Funding Programs Though the details differ, a handful of characteristics are typical of most FTA funding programs: • Eligible expenses vary by program (capital, operating, or planning) • Eligible recipients and sub-recipients vary by program (states, local government authorities, private non-profits, public transit operators, etc.) • All have local match requirements • All have post-award reporting requirements • Some have National Transit Database reporting requirements (S. 5307 and S. 5311 recipients) Module 1.1: Introduction to FTA Grants LEVEL I - PAGE I-3

• All involve FTA oversight reviews. The two comprehensive reviews are the Triennial Review (S. 5307 recipients) and the State Management Review (S. 5311 and S. 5310 recipients) Under MAP-21, state DOTs administer the S. 5310, S. 5311, and S. 5339 programs. Many states also administer the S. 5307 program for small urbanized areas. Prior to the passage of MAP-21, states also administered the former S. 5316 Job Access and Reverse Commute program (folded into the S. 5307/5311 programs) and S. 5317 New Freedom program (folded into the S. 5310 program). FTA Cross-Cutting Requirements In addition to program-specific requirements, state DOTs and their subrecipients must meet numerous other FTA and federal requirements. These include federal laws like the Americans with Disabilities Act, National Environmental Policy Act, and Title VI of the Civil Rights Act. Other examples include procurement requirements dealing with Buy America and Disadvantaged Business Enterprises, or National Transit Database reporting. Recipients of funding under the S. 5307 program are also subject to additional specific requirements. Section 5307 – Urbanized Area Formula Program: Funding to urbanized areas (UZAs), i.e. areas with a population of 50,000 or more as designated by the Census Bureau. Section 5310 – Enhanced Mobility of Seniors and Individuals with Disabilities: Funding to improve mobility for seniors and individuals with disabilities, including services that go beyond ADA requirements. The program spans geographies–from rural to urban. Section 5311 – Formula Grant for Rural Areas: Funding to support public transportation in rural areas (less than 50,000 in population). Capital, operating, planning, and job access and reverse commute (JARC) project expenses are eligible. Section 5339 – Bus and Bus Facilities: Capital funding for new and replacement buses and bus-related facilities. Module 1.1: Introduction to FTA Grants LEVEL I - PAGE I-4

KEY CONCEPTS • Subrecipient Legal Authority • Role of the Governing Body and Advisory Committee • Subrecipient Certifications and Assurances • Suspension/Debarment • Lobbying Restrictions In addition to having the subrecipients sign their annual certifications and assurances, two additional actions are required of the state – one dealing with the restrictions on lobbying and another dealing with ensuring that subrecipients are not barred from doing business with the federal government. IMPORTANCE FOR STATE DOT STAFF Establishing that your subrecipients are authorized to receive FTA funds is a critical part of every state’s transit program. The certifications and assurances are generally handled as part of the state’s annual grant application process and are intended to ensure that subrecipients comply with federal regulations as outlined in the FTA Master Agreement. It is important that subrecipients understand and comply with these requirements since ultimately, if they are not in compliance, the state is not in compliance. INTRODUCTION This module addresses the basic legal requirements to receiving FTA funds, including those related to conducting business in an ethical manner. Grantees must be eligible and authorized under state and local law to request, receive, and dispense FTA funds and to execute and administer FTA funded projects. The authority to take actions and responsibility on behalf of the grantee must be properly delegated and executed. Before expending any FTA funds on projects, the state certifies to FTA that it, and others operating on its behalf, have met all statutory and program requirements. The governor of your state has designated your agency with the principal authority and responsibility for administering the FTA program funds and has assured FTA that your agency has the requisite technical capacity to receive and administer those funds. Your agency, on the other hand, is responsible for ensuring that your subrecipents are aware of and comply with the federal requirements associated with the FTA programs. Thus, the state must have an on-going system to ensure that subrecipients adhere to federal requirements. Subrecipient oversight starts with 1) your review of the legal authority of subrecipients, and 2) their assurances (by signing the annual certifications) that they will comply with the federal rules. Module 1.2: Legal Authority and Annual Certifications LEVEL I - PAGE I-5

DEFINITIONS Covered Federal Action: Any of the following federal actions: (1) the awarding of any federal contract; (2) the making of any federal grant; (3) the making of any federal loan; (4) the entering into of any cooperative agreement; and, (5) the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. Debarred or Suspended: Contractors that have been “debarred or suspended” have been declared ineligible, on the basis of statutory or other regulatory procedures, and are excluded from receiving contracts, and if applicable, subcontracts from the federal government. Designated Recipient: (A) an entity designated, in accordance with the planning process under S. 5303 and S. 5304, by the Governor of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under S. 5336 to urbanized areas of 200,000 or more in population; or (B) a State or regional authority, if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation. Lobbying (influencing or attempting to influence): Making any communication to or appearance before an officer or employee or any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any covered federal action. Master Agreement: The FTA official document containing FTA and other cross-cutting federal requirements applicable to the FTA recipient and its project(s). The Master Agreement is generally revised annually in October. The Master Agreement is incorporated by reference and made part of each FTA grant, cooperative agreement, and amendment thereto. Subrecipient: An entity that receives FTA funds via a pass-through agreement with a direct recipient or designated recipient, whereby the original recipient remains responsible for compliance with all terms, conditions and requirements associated with the grant. A state’s FTA subrecipients are typically local governmental authorities, private nonprofit organizations, and operators of public transportation. Module 1.2: Legal Authority and Annual Certifications LEVEL I - PAGE I-6

LEVEL II PREVIEW Subrecipient Legal Authority States are the designated recipient for the FTA funds under S. 5311, S. 5310 (for rural and small urbanized areas; states can be the designated recipient for large urbanized areas as well), and S. 5307 (for small urbanized areas). Local subrecipients must be eligible and authorized under state and local laws to request, receive, and dispense FTA funds and administer FTA-funded projects. The authority to take necessary action and responsibility on behalf of the grantee must be properly delegated and executed. For S. 5310 and S. 5311, each state establishes its own criteria for what constitutes eligibility/authority to receive and administer funds, within the limits of FTA-established eligibility restrictions for each program. For S. 5307, each recipient must have an authorizing resolution that identifies the individuals authorized to act on its behalf. A certified copy of the authorizing resolution is required for all FTA S. 5307 recipients. FTA only requires the authorizing resolution to be submitted prior to the grant applicant’s first application. For subsequent grant applications, FTA relies on the annual certifications and assurances. Role of the Governing Body and Advisory Committee The authorizing resolution for S. 5307 recipients must be from the governing body of the grant applicant, a statute, or an ordinance. Certain FTA-required policies and programs are required to be adopted by the governing body of each subrecipient. Although not required by FTA, a recommended practice is that each S. 5307 and 5311 subrecipient also have an ongoing advisory committee for planning FTA-funded service and policy changes. Subrecipient Certifications and Assurances Before FTA may award federal funding, an applicant must provide to FTA all certifications and assurances required by federal laws and regulations. This is required of all states, and the states in turn pass on the requirement to their subrecipients, typically as part of the grant application. Module 1.2: Legal Authority and Annual Certifications LEVEL I - PAGE I-7

Near the beginning of each federal fiscal year, FTA publishes the certifications in the Federal Register, highlighting any changes or additions from the previous year. The authorized representative of the recipient must make the requisite certifications. The person signing the annual certifications should be the same person/position/title designated in the transit agency’s authorizing resolution. Suspension/Debarment Federal rules impose a statutory requirement on FTA grantees to award contracts made with FTA assistance only to responsible contractors. To prevent fraud, waste, and abuse, persons or entities that potentially threaten the integrity of federally administered non-procurement programs are excluded from participation in FTA-assisted programs. FTA grantees and subrecipients are required to certify that they are not excluded from federally-assisted transactions. The grantees comply with this requirement in their annual certifications and assurances with the Debarment/Suspension certifications. Lobbying Restrictions The use of federal funds for lobbying is prohibited. Recipients (and their contractors and sub-recipients) receiving federal grants and contracts over $100,000 must certify compliance with this restriction. FTA’s Master Agreement states that recipients shall not use federal funds to influence or attempt to influence a federal agency officer/employee, member/officer/employee of Congress, or employee of a member of Congress. Recipients of federal grants and contracts exceeding $100,000 must certify that they have not and will not make prohibited payments (i.e., paying a lobbyist with federal funds). Recipients are permitted to hire a lobbyist if they pay for the services with non-federal funds. However, they must submit a disclosure form to FTA, the Standard Form LLL. As well as filing for themselves, states are responsible for ensuring that subrecipients file certifications and disclosure forms, and also that subrecipients pass the requirements on to their contractors and subcontractors for awards exceeding $100,000. Module 1.2: Legal Authority and Annual Certifications LEVEL I - PAGE I-8

KEY CONCEPTS • Life Cycle of a Grant • State Management Plans • Program of Projects • Grant Application Process • Interfacing with FTA/Using TEAM-Web • Milestone Progress Reports • National Transit Database • Grant Modifications • Grant Close-Out IMPORTANCE FOR STATE DOT STAFF The FTA grants to your agency need to be managed in order for you, the state, to fund local transit systems. There may be only a few people (or one person) in your agency who handle this function as it is fairly specialized. Even if you are not one of those people, it is still useful to understand. This is especially true if you have responsibilities with respect to local transit agencies; FTA grants requirements affect how you will manage the flow of funds and how the funds are used by subrecipients. INTRODUCTION This module addresses the FTA grant administration requirements in terms of how states interface with FTA. The basic requirements are that the state must develop an annual program of projects, track and report on the progress of projects, report to the National Transit Database, and close out projects and grants when project activity is completed. It is useful to remember that states have two major roles in administering and managing grants: 1) the grantee to FTA, and 2) the grantor to subrecipients. State-to-subrecipient grant administration requirements are addressed in the next module in this curriculum. Grant administration is closely related to financial management, as illustrated in the diagram to the right. New state staff should review this module before proceeding to Subrecipient Grant Administration or either of the financial management modules. LEVEL I - PAGE I-9 Module 1.3: FTA Grant Administration

Further, a state may be cited as deficient in a State Management Review (SMR) if FTA grant funds allocated to the state are not spent during their period of availability. Such grants may be subject to grant close-out so that the funds can be deobligated and redistributed to other states. If a state does not allocate Section 5310 and 5311 funding to specific projects before the end of the period of availability, these funds will be deobligated by FTA. In the simplest terms, states should “use it or lose it.” DEFINITIONS Program of Projects (POP): A list of projects to be funded in a grant application submitted to FTA by a state or designated recipient. The POP lists the subrecipients and indicates what type of organization they are, a brief description of each project, total project cost, and federal share for each project. TEAM: FTA’s current web-based Transportation Electronic Award and Management system (in use at the time this curriculum was developed). TrAMS is anticipated to replace TEAM beginning in FY 2015. Among other things, grantees apply for grants, inquire about the status of grants, file the required financial report and milestone progress reports, and submit annual Certifications and Assurances in TEAM. TrAMS: FTA’s forthcoming new web-based Transportation Transit Award and Management system, which is anticipated to replace TEAM beginning in FY 2015. LEVEL II PREVIEW Life Cycle of a Grant Each FTA grant has a life cycle, which is useful to understand before getting into the grants management requirements that apply to various stages of the cycle. An overview of the FTA-to-state grant life cycle is provided in the following text box. Module 1.3: FTA Grant Administration LEVEL I - PAGE I-10

State Management Plans States must develop and submit a State Management Plan (SMP) to the FTA for the S. 5310 and S. 5311 programs (either stand- alone plans or combined). The SMP details the policies and procedures used to administer the programs. The SMP must be current and reflect actual practices, and include the elements outlined in the program circulars. Program of Projects Each state prepares an annual program of projects (POP) for each FTA program it administers and submits to FTA. The POP serves as the scope of projects to be funded within each FTA grant to the state and constitutes the scope of the annual grant application to FTA. The POP identifies the subrecipients and indicates what type of organization they are, provides a brief description of each project, total project cost, and federal share for each project, as well as the amount of funds the state plans to use for state program administration. FTA allows states to submit grant applications that include subrecipient projects at various stages of compliance with applicable federal requirements. The Life of a Grant 1. Planning - Before a state can even apply for FTA funding, it must go through a planning process to identify the projects it proposes to conduct using FTA funding. As a key part of the planning process, local subrecipients apply to the state. The state must determine which local subrecipient projects it plans to fund before the state can apply for FTA funding for these projects. States typically conduct the local process annually or biennially. 2. Program of Projects (POP) - The state develops an annual program of projects (POP). The POP is a compilation of all of the subrecipient projects planned under each FTA funding program, as well as state-level projects, and provides the basis for the state’s annual funding application. 3. Applying to FTA - The state applies for FTA funding through FTA’s web- based grants management system (beginning in FY 2015, TrAMS; until then, TEAM). 4. FTA Grant Award and Execution - For each FTA program (S. 5310, S. 5311, etc.), FTA awards a single annual grant to the state. Both parties execute the grant agreement. 5. State Management of Grant - Once the grant has been awarded and executed, the grant is now active, and state-level activities can begin that can be reimbursed with grant funding. Throughout a grant’s active life, the state must submit milestone progress reports (MPRs) and financial reports (FFRs) to FTA. Module 1.3: FTA Grant Administration LEVEL I - PAGE I-11

Grant Application Process FTA’s program-specific circulars describe the grant application process and requirements for each program. States should refer to these circulars for instructions for completing a grant application, which is submitted electronically through the web-based TEAM or TrAMS system. FTA notifies states by phone or e-mail of grant approval. The FTA grant agreement includes the notification of award and the approved project budget. Once the state receives the notification of grant award, the state executes the grant in TEAM/TrAMS. The electronic execution of the FTA grant agreement signifies the grant is active. At this point, the state can execute its subrecipient grant agreements for those projects that it has certified as having met all the applicable federal statutory and administrative requirements (both for the project activities and for the subrecipient that will carry out those activities). Interfacing with FTA/Using TEAM-Web The primary mechanism with which states interface with FTA is FTA’s web-based grants management system. At the time this curriculum was developed, the system in use is TEAM. However, TEAM will be replaced by TrAMS. FTA anticipates that TrAMS will go live in October beginning in 2014, thus replacing TEAM beginning in FY 2015, with each state’s electronic records from TEAM migrated into TrAMS. Among other things, grantees apply for grants, inquire about the status of grants, file the required financial report and milestone progress reports, and submit annual Certifications and Assurances in TEAM/TrAMS. When a state staff member needs to interface with a live human being at FTA, this is typically through the FTA Regional Office. Milestone Progress Reports The state has ongoing reporting requirements for each active grant, including a Federal Financial Report (FFR) and the Milestone/ Progress Report (MPR) submitted annually or quarterly, depending upon the specific grant. FTA reporting requirements may vary depending on the size of the grantee, the type of funding, or the amount of funding a grantee receives. FTA uses these reports to monitor grant status and compliance elements, such as: • The purposes of the grant are being achieved; • The project is progressing on time and within budget; Module 1.3: FTA Grant Administration LEVEL I - PAGE I-12

• The grantee is demonstrating competence and control in executing the project; • The project meets all program requirements; • Any problems developing that may require FTA resources to resolve. The MPR is the primary written communication between the grantee and FTA. For each active/executed grant, the state must submit an MPR that accompanies the FFR. This report is submitted electronically in TEAM/TrAMS. National Transit Database The National Transit Database (NTD) is FTA’s primary national database for statistics on the transit industry. Recipients of FTA S. 5311 grants are required to submit an annual NTD report for all S. 5311 beneficiaries and subrecipients. This requirement also applies to recipients of Congestion Mitigation and Air Quality Improvement Program (CMAQ) and Surface Transportation Program (STP) funds that are “flexed” into the 5311 program. Grant Modifications After grant approval, the state can still make revisions to the POP and project budget. Grant modifications are electronically submitted, reviewed, and approved in TEAM/TrAMS. There are three ways to modify a grant after it has been awarded—either through a budget revision, an administrative amendment, or a grant amendment. Whether a budget revision may be permitted (with or without prior FTA approval before incurring costs) or whether an amendment to the project will be necessary, depends on the effect of the proposed change on the scope of the project. Grant Closeout States should close out their grants with FTA within 90 days of completion of program activity, following close-out of all subrecipient projects (discussed in the Subrecipient Grant Administration module). A final Financial Status Report (FSR), budget, and milestones report should be electronically submitted. Module 1.3: FTA Grant Administration LEVEL I - PAGE I-13

KEY CONCEPTS • Subrecipient Grant Applications • Subrecipient Funding Allocations/Project Selection • Subrecipient Grant Agreements • Subrecipient Reporting and Tracking • Subrecipient Project Close-Out they need to provide public transit in their communities. Most state transit staff members are involved in this function at some level. Further, your state may be cited as deficient in a State Management Review (SMR) if it does not comply with each FTA requirement. The state oversees its subrecipients, and is responsible for ensuring that subrecipient projects are completed on time and that data are reported as needed for the state’s reports to the FTA. INTRODUCTION This module addresses FTA grant administration requirements related to allocating funds to subrecipients, subrecipient grant applications and agreements, subrecipient reporting requirements, and project/grant close out when project activity is completed, as well as the state’s role in oversight of these requirement areas. Prior to reviewing this module, it is recommended that new state staff review the FTA Grant Administration module. Subrecipient grant administration is also closely related to financial management, as illustrated in the diagram to the right. IMPORTANCE FOR STATE DOT STAFF This function is important to you since it represents the core function of your division – making sure that your subrecipients, local transit agencies, have access to the federal dollars Module 1.4: Subrecipient Grant Administration LEVEL I - PAGE I-14

DEFINITIONS Please refer to the definitions in the FTA Grant Administration module. LEVEL II PREVIEW The Life of a Subrecipient Grant States have two major roles in administering and managing grants: 1) the grantee to FTA (described in the FTA Grant Administration module), and 2) the grantor to subrecipients (described in this module). An overview of the state-to-subrecipient grant life cycle is provided in the following text box. The state’s grants to subrecipients have their own life cycle embedded within the active FTA-to-state life cycle. The Life of a Subrecipient Grant a. Subrecipient Planning - States generally require some type of planning activities from subrecipients. Requirements may vary by FTA program. b. Subrecipient Application - The state relies on the subrecipient applications to develop the state’s POP (stage 2 of the FTA-to-state grant life cycle). c. State Application to FTA on Behalf of the Subrecipients - This happens in stage 3 of the FTA-to-state grant life cycle. d. State Grant Award and Execution - After the state has received the state grant from the FTA, the state executes its own grants to the subrecipients. This and the rest of the subrecipient grant activities fall within stage 5 of the FTA-to-state grant life cycle. e. Subrecipient Project Activity - The subrecipient conducts the project activities and incurs project costs. f. Subrecipient Submittals to State - The subrecipient submits requests for reimbursement and supporting documentation, and project progress reports to the state. These submittals provide the basis for the next step. g. State Submittals to FTA - The state submits Federal Financial Reports (FFRs) and Milestone/Progress Reports (MPRs) to FTA through TEAM/TrAMS. h. FTA to State to Subrecipient Reimbursement - Once the state receives dollars from FTA, the state reimburses its subrecipient. i. State Close-out of Subrecipient Grant - The state monitors subrecipient grant activity and project milestones. Once the project is complete (or, for inactive grants, when the funding availability is due to expire), the state initiates grant close-out with the subrecipient. Once the grant is closed out, the funds are no longer available to the subrecipient. Module 1.4: Subrecipient Grant Administration LEVEL I - PAGE I-15

Subrecipient Grant Applications States typically have a subrecipient grant application process for determining which projects should receive FTA grant funding. States develop their own local grant application policies, procedures, formats, and means of submission. Some states require a separate application for each FTA and state funding program. Others have a consolidated or partially consolidated application. Subrecipient Funding Allocations/Project Selection Each FTA grant program has its own set of requirements related to how states should distribute funds among local projects. Each state determines its own subrecipient funding allocation formulas and project selection criteria for the FTA and state grant programs it administers. States are generally given broad discretion on how they design their local project selection process, so long as their process meets program-specific federal requirements. States must also ensure that distribution of funding does not violate Title VI of the Civil Rights Act, and must have procedures for assuring equity of distribution of benefits among groups within the state. Subrecipient Grant Agreements A state-to-subrecipient grant agreement is executed by the state for each subrecipient project selected for FTA funding. The agreement typically spells out the project(s) to be funded, the amount of federal funding provided (as well as any state funds to be used in the project), the local match the subrecipient must provide, and the gamut of federal requirements with which the subrecipient agrees to comply in accepting FTA funds. Subrecipient Reporting and Tracking Each state establishes its own financial and project progress reports required for its subrecipients, as well as reports on data needed for rural NTD submission. The subrecipient progress reports allow the state to complete its Federal Financial Reports (FFRs) and Milestone/Progress Reports (MPRs). Subrecipient Project Closeout The state must close out subrecipient projects within 90 days of completion of project activities (after all funds are expended and/or all work activities for the project are completed). State close-out of its own grants from FTA is contingent upon first closing out its subrecipient grants. States need to closely monitor subrecipients to ensure that grant activities are completed in accordance with the project scope and that disbursement of FTA funds are requested in a timely manner. Module 1.4: Subrecipient Grant Administration LEVEL I - PAGE I-16

KEY CONCEPTS • Budgeting • Accounting • Financial Reporting and Financial Status Reports • Funds Management • Federal Financial Interest in Assets to draw down all FTA funds. Funds which are not obligated during their period of eligibility to the state will be deobligated by FTA for reallocation to other states. DEFINITIONS Activity Line Item (ALI): The description and dollar amount contained in the budget for an approved grant activity associated within a particular scope approved as part of a grant. ALIs under each scope are informational and are used as tools for FTA and the grantee to manage the grant. INTRODUCTION This module addresses FTA requirements that subrecipients must comply with related to how grant funds are handled, accounted for, reported, and matched, as well as the state’s role in oversight of this requirement area. Prior to reviewing this module, it is recommended that new state staff review the following modules: FTA Grant Administration and Subrecipient Grant Administration. Financial management is closely related to grant administration, as illustrated in the diagram to the right. IMPORTANCE FOR STATE DOT STAFF A state may be cited as deficient in a State Management Review (SMR) if it does not comply with each FTA requirement. Without sufficient local match funding, the state may not be able Module 1.5: FTA Financial Management LEVEL I - PAGE I-17

Depreciation: Method used to calculate the reduction in value of an item of personal or real property over time. Is the term most often used to indicate that personal property has declined in service potential. Electronic Clearing House Operation (ECHO): ECHO is a web-based application that processes draw down requests and makes payments to FTA grantees. Obligate/De-obligate: To bind or commit grant funds to a project/to undo this commitment Program of Projects (POP): A list of projects to be funded in a grant application submitted to FTA by a designated recipient. The POP lists the subrecipients and indicates what type of organization they are, a brief description of the projects, total project cost, and federal share for each project. LEVEL II PREVIEW Budgeting A budget is an estimate of income and expenditures related to a particular organization, program, or project for a set period of time. State FTA program managers are challenged with developing budgets that address FTA grant requirements while fitting into the state’s own budgeting processes, and also incorporating subrecipient grant/project budgets into the state’s POP. FTA grant budgets are typically prepared by state DOTs on an annual basis, and submitted as part of the annual grant application. States prepare an overall budget for each FTA grant program that includes subrecipient projects as well as specific state-level projects to be funded by that grant. These projects are aggregated into a POP for each grant. A state combines the various subrecipients’ projects into standard activity line items (ALIs). At the federal level, FTA grant programs are apportioned to programs and allocated to states for the 12-month period of October 1 through September 30 (the federal fiscal year). State allocations for the upcoming fiscal year are typical published in the Federal Module 1.5: FTA Financial Management LEVEL I - PAGE I-18

Register in early October. Once this notice is published, the state knows how much FTA funding (total by grant) is available to the state (including its subrecipients) for the next 12 months, and the state can prepare its FTA grant budgets, obligating the funds FTA allocates to it, and allocating those funds to its own subrecipients. Although each FTA grant is awarded in a specific fiscal year, depending on the program and type of project, a grant may span multiple federal years. Accounting The state (and its subrecipients) must have fiscal control and accounting procedures sufficient to permit preparation of required reports, and permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes. States must be able to trace reimbursements to source documents, like invoices for goods or services or timesheets. Financial Reporting and Financial Status Reports As described in the FTA Grant Administration module, the state has ongoing reporting requirements for each active grant, including the Federal Financial Report (FFR) and the Milestone/Progress Report (MPR) submitted annually or quarterly, depending upon the specific grant. The purpose of the FFR (Standard Form (SF) 425) is to provide a current, complete, and accurate financial picture of the grant. For each active/executed grant, the state must submit an FFR that accompanies the MPR. This report is submitted electronically in TEAM/TrAMS. Funds Management A grant’s funds are available for a finite period. The period of availability varies by program, with the year of apportionment plus additional years. A state need not apply for all its funds the year the funds are apportioned, but states must obligate funds before the period of availability ends. Any funds remaining unobligated at the end of the period of availability are added to the next year’s federal program apportionment and are reapportioned among all states (or UZAs in the case of S. 5307). MAP-21 (and SAFETEA-LU) allows the states flexibility in transferring funds among the various state-administered programs such as Module 1.5: FTA Financial Management LEVEL I - PAGE I-19

S. 5310 and S. 5311. Funds transferred must be used for the express purposes designated by the original program. Further, within an FTA program, states may have some flexibility in transferring allocations between geographic areas or types of projects. U.S. DOT’s Electronic Clearinghouse Operation (ECHO) is the primary automated application used by FTA grant recipients (grantees) to request payments from their grant awards. Federal Financial Interest in Assets FTA retains a financial interest in the value of an FTA-funded capital asset (such as a vehicle or facility) until the asset has exceeded its useful life. The federal financial interest amounts to the federally-funded portion. For assets that depreciate (such as vehicles), the federal interest depreciates as well. For a $100,000 vehicle that was purchased with 80% federal funds that is currently valued at $10,000, FTA has a $8,000 federal interest. FTA provides a useful life policy for rolling stock, trolleys, ferries, facilities, and some equipment funded under S. 5307. Removal of an FTA-funded vehicle from revenue service before the end of its minimum useful life, except for reasons of fire, collision, or natural disaster, leaves the recipient liable to FTA for the federal share of the vehicle’s remaining value. Module 1.5: FTA Financial Management LEVEL I - PAGE I-20

KEY CONCEPTS • Subrecipient Financial Capacity • Eligible Expenditures • Cost Allocation/Indirect Costs • Local Match • Force Account Activities • Audit Requirements and Review are responsible for ensuring that your subrecipients are meeting all the federal regulations and managing their grants in an effective and compliant manner. A state may be cited as deficient in a State Management Review (SMR) if it does not comply with each FTA requirement. The state has oversight responsibility for subrecipients, and is responsible for reviewing subrecipient reimbursement requests and supporting documentation to ensure that only eligible expenses are being charged to the grant. INTRODUCTION This module addresses the FTA requirements that subrecipients must comply with related to how grant funds are handled, accounted for, reported, and matched, as well as the state’s role in oversight of this requirement area. Prior to reviewing this module, it is recommended that new state staff review the following modules: FTA Grant Administration, Subrecipient Grant Administration, and FTA Financial Management. Financial management is closely related to grant administration, as illustrated in the diagram to the right. IMPORTANCE FOR STATE DOT STAFF It is important that your subrecipients have the financial capacity to manage the federal (and state) transit grants that they are awarded by your agency. As the “grantor”, you Module 1.6: Subrecipient Financial Management LEVEL I - PAGE I-21

DEFINITIONS Please refer to the definitions in the FTA Financial Management module. LEVEL II PREVIEW Subrecipient Financial Capacity Annually, the state certifies to FTA (as part of the annual certifications and assurance process) that it and its subrecipients have the financial capacity to carry out its proposed program of projects. This entails having adequate local funds to match the federal funds, since unless the minimum local match is provided for a grant project, the federal funds cannot be drawn down. Further, because FTA funding is provided on a reimbursement basis, subrecipients must have adequate cash flow to keep the service operating, vehicles maintained, etc. while waiting for reimbursement from FTA through the state. To ensure that subrecipients have adequate financial capacity, the state must obtain and maintain sufficient documentation from each subrecipient to support the certification to FTA. States have discretion in how this is accomplished, but generally require applicants to list the sources of funding that will be applied to the project. Eligible Expenditures Eligible costs must specifically relate to the purpose of the grant contract and the latest approved project budget. Each FTA funding program has parameters on what expenses are eligible; the nature of the grant (capital, operating, etc.) will further limit what is considered eligible under that grant, and the project budget specifically defines what is considered eligible for FTA reimbursement. Cost Allocation/Indirect Costs Under federally funded grant programs, recipients may incur both direct and indirect costs. Indirect costs are organizational costs which are not directly attributable to a specific program or project (sometimes referred to as overhead). Module 1.6: Subrecipient Financial Management LEVEL I - PAGE I-22

An approved cost allocation plan is required to support the distribution of a subrecipient’s indirect costs to the FTA grant program. The cost allocation plan must be approved by FTA or the federal agency that provides the most funding to the subrecipient (referred to as the “cognizant” federal agency). States are responsible for oversight of subrecipients’ indirect cost allocation plans, including ensuring plan submission to the cognizant federal agency. Local Match The state must ensure each subrecipient has or will have the required local match for all FTA-assisted projects and has or will have sufficient funds to operate and maintain the vehicles and equipment purchased under the projects. Revenue sources should be stable and reliable enough to meet future annual operating and routine capital costs. The state must obtain and maintain sufficient documentation from each subrecipient to support its certification to FTA. The state must ensure that subrecipients use only eligible funds as local match and that volunteer or in-kind services are fully documented. State assistance may provide some or the entire local match. However, all of the match must come from non-U.S. DOT sources, except for Federal Lands Highway Program funds. Force Account Activities When a subrecipient uses its own work force to carry out a capital grant project, rather than using contractors (e.g. public works staff installing bus shelters), this is referred to by FTA as “force account” work. The state must ensure that each subrecipient that has force account work of $100,000 or more has a force account plan and justification on file. When work to be performed using force account is valued less than $100,000, no plan is required. Audit Requirements and Review Non-federal entities that expend $500,000 or more in a year in federal awards must have a single or program-specific audit conducted for that year. The state must ensure that subrecipients that meet this threshold comply with the requirement; items purchased by the state for a subrecipient count towards a subrecipient’s single audit threshold. However, FTA does not require a single audit of a subrecipient when assistance is provided solely in the form of capital equipment procured directly by the state. Module 1.6: Subrecipient Financial Management LEVEL I - PAGE I-23

KEY CONCEPTS • FTA Compliance Reviews of States • State Reviews of Subrecipient Compliance • Project Management of Facility Construction or Rehabilitation Projects IMPORTANCE FOR STATE DOT STAFF State DOTs are responsible for oversight of their subecipients’ compliance with FTA requirements. State transit staff need to maintain documentation of grant program activities as well as oversight of subrecipients. State DOTs generally accomplish this function by conducting both on-going and periodic compliance reviews of their grantees to ensure compliance with federal and state regulations as well as continuing control of federally-funded INTRODUCTION This module addresses general requirements and responsibility related to oversight of FTA recipients and subrecipients, as well as the state’s responsibility for technical oversight of subrecipient capital projects (covered in the State Management Review workbook in the “Project Management” section). FTA oversees program management activities conducted by state DOTs through several kinds of in-depth reviews. States are responsible for ensuring that their subrecipients comply with FTA requirements associated with each grant or project. FTA requires grantees (including states) to maintain satisfactory continuing control of federally-funded real property, facilities, and equipment, and to ensure that they are used in transit service. In addition to requiring subrecipents to sign and submit annual certifications and assurances, states also need to monitor subrecipients and how they are using their FTA grant funds and FTA-funded equipment and facilities to ensure that the funds are being used as intended. Further, they need to enforce any requirements in which a subrecipient is found to be deficient. State DOTs must ensure the continuous management of FTA funded projects. Procedures must be in place for quality control and technical supervision. Module 1.7: Project Management and Grantee Oversight LEVEL I - PAGE I-24

assets. One aspect of oversight that is important but often overlooked is following up on areas of non-compliance with subrecipients and documenting their corrective actions. State DOTs must ensure the continuous management of FTA funded projects, whether the projects are conducted by the state or by its subrecipients. Management of capital projects requires technical knowledge. DEFINITIONS Capital Project: in general, projects that involve purchasing, leasing, constructing, maintaining, or repairing facilities, rolling stock and equipment intended for use in a public transportation system. Capital project costs may include all direct costs and indirect costs associated with the project. Eligible expenses for capital projects vary by grant program. Federal Interest: the federally-funded portion of an asset’s value. For an asset that was purchased using 80% FTA funding and 20% local match funding, the federal interest would be 80% of the current fair market value of the asset (factoring in depreciation). Useful Life: the expected lifetime of project property, or the acceptable period of use in service. Useful life of revenue rolling stock begins on the date the vehicle is placed in revenue service and continues until it is removed from service. LEVEL II PREVIEW FTA Compliance Reviews of States FTA oversees program management activities conducted by state DOTs through several kinds of in-depth reviews. When conducting oversight reviews of states, FTA looks at how the state conducts oversight of its subrecipients to determine whether the oversight is adequate to ensure compliance with FTA requirements at the local level. Module 1.7: Project Management and Grantee Oversight LEVEL I - PAGE I-25

FTA conducts periodic State Management Reviews (SMRs) of each state DOT to ensure that the state is carrying out its obligations as a primary grantee of FTA funding. The SMR is a comprehensive assessment of the state’s compliance with FTA requirements in implementation and management of FTA programs. The SMR process includes a desk review, site review, compliance report, follow- up actions, and a follow-up review. In addition to the comprehensive SMR, FTA conducts oversight reviews in specific areas as warranted for states that are at-risk or out of compliance. These include civil rights, financial management, and procurement reviews. State DOTs that also operate urban transit systems funded with S. 5307 or 5309, or have oversight of small urbanized transit systems funded under these programs, are also subject to FTA’s Triennial Reviews, ADA Compliance Reviews, and other FTA reviews that are relevant to transit system management and operations. State Reviews of Subrecipient Compliance States are responsible for ensuring that their subrecipients comply with FTA requirements associated with each grant or project. FTA requires grantees (including states) to maintain satisfactory continuing control of federally-funded real property, facilities, and equipment, and to ensure that they are used in transit service. In addition to requiring subrecipents to sign and submit annual certifications and assurances, states also need to monitor subrecipients and how they are using their FTA grant funds and FTA-funded equipment and facilities to ensure that the funds are being used as intended. Further, they need to enforce any requirements in which a subrecipient is found to be deficient. Beyond the FTA-required annual certifications and assurances, each state determines the oversight activities it conducts on its subrecipients. This can range from informal observation and review to in-depth audits of compliance with federal (and state) requirements. Oversight can be seen as an opportunity to educate and provide technical assistance to subrecipients, rather than simply policing their actions. States can develop the technical capacity of their subrecipients (and build positive state-to-subrecipient relationships) by providing training on requirements, encouraging subrecipients to ask questions, and offering hands-on assistance with achieving compliance. Module 1.7: Project Management and Grantee Oversight LEVEL I - PAGE I-26

For capital projects used to purchase assets, state oversight of subrecipient use of the asset should continue until FTA no longer has a financial interest in the asset (i.e., until the asset exceeds its useful life in terms of years or, for vehicles, mileage). Capital Project Management and Oversight State DOTs must ensure the continuous management of FTA funded projects, whether the projects are conducted by the state or by its subrecipients. Management of capital projects requires technical knowledge. In conducting SMRs, FTA reviews the state’s technical oversight of capital projects in the context of project management. Capital projects are defined by their scope, budget, and schedules, and effective project management involves executing these elements while maintaining acceptable levels of risk, quality, safety, and security. In many cases, state DOTs contract out for facility construction or facility rehabilitation projects. They must provide technical oversight of the contractor, including regular meetings to review the project status. State project management and oversight may be done in house or by an outside architectural/engineering firm. States must also provide technical oversight for procurements (e.g. when buying revenue rolling stock directly). When subrecipients buy buses directly, the state must monitor the procurement. States must also provide technical oversight of technology projects implemented by it or its subrecipients. A state’s information technology (IT) department may oversee technology projects, sometimes with consultant support. Module 1.7: Project Management and Grantee Oversight LEVEL I - PAGE I-27

KEY CONCEPTS • Cost Efficiency • Full and Open Competition • Ethics • State Procurement Versus Oversight of Subrecipient Procurement • Disadvantaged Business Enterprise (DBE) • Buy America and Vehicle Procurement Requirements • Federal Requirements that Come with the Contract FTA procurement requirements are complex and designed to achieve many goals, including: • Ensuring consistent and fair approaches to procurement by following written policies and procedures and a code of standards of conduct. • Ensuring cost-efficient purchases. • Ensuring full and open competition among potential vendors. • Creating a “level playing field” for businesses owned by minorities and women (Disadvantaged Business Enterprises). • Ensuring that vendors are fully qualified to deliver what is being purchased, and have not been banned from participating in federally-funded contracts (suspension and debarment). • Ensuring that steel, iron, and manufactured products used in FTA funded projects are produced in the United States (Buy America). • Ensuring that revenue rolling stock (i.e., vehicles) purchased also meet Federal Motor Vehicle Safety Standards, FTA bus testing requirements, and other purchaser requirements. • Ensuring that all FTA-funded contracts include clauses that address all applicable FTA requirements. • Maintaining a detailed paper trail that documents all steps in the process. INTRODUCTION Procurement, also known as third party contracting, refers to the purchase of items or services. It involves the relationship between FTA, the funding recipient/grantee, and the party from which the grantee is buying something (the contractor or vendor). FTA grantees (and sub-recipients) use their own procurement procedures that reflect applicable state and local laws and regulations, provided that the process ensures competitive procurement and the procedures conform to applicable federal law, including the Common Grant Rule. Both the dollar value and the nature of the items and services being purchased can affect applicability of specific federal procurement requirements. Module 1.8: Introduction to Procurement LEVEL I - PAGE I-28

IMPORTANCE FOR STATE DOT STAFF States are responsible for establishing and following their own federally-compliant procurement policies and procedures for making their own purchases (or purchases on behalf of subrecipients). States must also monitor that subrecipients establish and follow their own federally-compliant procurement policies and procedures. FTA reserves the right to decline to participate in (i.e., deny funding for) the costs of third party procurements that fail to comply with federal laws, regulations, or the terms of the recipient’s underlying grant or cooperative agreement. DEFINITIONS Common Grant Rule: U.S. DOT regulations that apply to all federal grants and cooperative agreements with governmental, non- governmental, and Indian tribal government recipients (49 CFR Parts 18 and 19, “Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments” and “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations”). Full and Open Competition: all responsible sources are permitted to compete. In other words, the ability to compete for a contract award is not restricted, for example, to vendors with whom a relationship has been established, or to vendors within a limited geographic area. Manufactured Product: an item produced as a result of the manufacturing process. Manufacturing process means the application of processes to alter the form or function of materials or of elements of the product in a manner adding value and transforming those materials or elements so that they represent a new end product functionally different from that which would result from mere assembly of the elements or materials. Recipient: the public or private entity to which FTA awards federal assistance through a grant, cooperative agreement, or other agreement. The recipient is the entire legal entity even if only a particular component of the entity is designated in the document through which FTA has awarded the federal assistance. The term “recipient” includes “grantee,” which is a recipient of Federal grant assistance. The term “recipient” also includes each member of a consortium, joint venture, team, or partnership awarded FTA Module 1.8: Introduction to Procurement LEVEL I - PAGE I-29

assistance through a grant, cooperative agreement, or other agreement. For the purposes of the FTA procurement requirements, “recipient” also includes any subrecipient or subgrantee of the recipient. Rolling Stock: transit vehicles such as buses, vans, cars, railcars, locomotives, trolley cars, and ferry boats, as well as vehicles used for support services. Third Party Contract: a recipient’s contract with a vendor or contractor, including procurement by purchase order or purchase by credit card, which is financed with federal assistance awarded by FTA. LEVEL II PREVIEW In Level II of this curriculum, there are four separate modules for procurement to cover the extensive federal requirements related to procurement. Cost Efficiency Purchases made with FTA funding are expected to be cost-efficient and have a price consistent with the current market. This could be described as striving to get the most “bang for your buck.” To maximize cost efficiency, FTA requires that there be a “cost or price analysis with every procurement action.” This will be explained in more detail in the relevant sections of this module. In general terms, this means that before each time a state or subrecipient makes a decision to purchase something using FTA money, they need to do some sort of cost analysis or price comparison, and avoid choosing a product or service that would cost less from another vendor. To make best use of funds, it is also important to purchase from vendors who have the capability to deliver the goods or services they promise. Full and Open Competition States and subrecipients must provide qualified vendors fair opportunity to obtain contracted work through full and open competition. Depending on the dollar value of the contract or purchase, there are different levels of effort that must be made to ensure open competition and different ways of going about soliciting bids or proposals. Grantees must have written procurement policies and procedures indicating appropriate procurement methods depending on the project dollar amount and type of project. The Module 1.8: Introduction to Procurement LEVEL I - PAGE I-30

federal requirements detail many elements that must be included in the written policies and procedures. An appeals process must be afforded to vendors who feel the competition was not open. Under the federal requirements, the methodology for soliciting and evaluating offers for purchases valued at $100,000 or more (based on Common Rule threshold for governmental recipients at the time this curriculum was drafted) must be rigorous. The most commonly used approaches include Sealed Bids (through an Invitation for Bids or IFB) or Competitive Proposals (through a Request for Proposals or RFP). Ethics States and subrecipients of FTA funds are expected to make purchases in an ethical manner. This means following the state’s (or the subrecipient’s) established procurement policies and procedures, and written standards of conduct. Vendors should be selected based on their ability to provide the items or services at a competitive price. In contrast, unethical approaches could include awarding a contract to a vendor simply because they are a friend or family member, or because the person making the award would stand to gain financially, or because the vendor has offered some sort of bribe. Further, recipients and subrecipients are responsible for ensuring that selected vendors have not been debarred or suspended from participating in Federal contracts (due to fraudulent behavior, for example). State Procurement Versus Oversight of Subrecipient Procurement There are two distinct perspectives of applicability of procurement requirements that state transit program staff should be aware of: 1) the state as the purchaser and 2) the state as the oversight agency for its subrecipients. The procurement requirements in this curriculum generally focus on the state as the oversight agency of the subrecipients, rather than the state’s obligations in conducting its own procurement activities or in conducting oversight of its own contractors. Subrecipient requirements vary depending on if the subrecipient is a public or a private entity. Federal laws and regulations affect the third party contractor providing the property or services, or even determine which entities may qualify as a third party contractor. Other laws and regulations affect the nature of the property or services to be acquired or the terms under which the property or services must be acquired. A recipient may not use FTA assistance to support acquisitions that do not comply with all applicable federal requirements. Appropriate procurement methods depend on the project dollar Module 1.8: Introduction to Procurement LEVEL I - PAGE I-31

amount and type of project, including micro-purchases ($3,000 or less), small purchases (>$3,000 and <$15,000), and purchases of $100,000 or more (based on Common Rule threshold for governmental recipients at the time this curriculum was drafted). States and subrecipients must follow their procurement policies and procedures, and must keep records documenting this. Disadvantaged Business Enterprise States and their subrecipients must ensure nondiscrimination in the award and administration of DOT-assisted contracts. Specifically, recipients who award prime contracts exceeding $250,000 in FTA funds in a fiscal year (excluding transit vehicle purchases) must have a Disadvantaged Business Enterprise (DBE) program. States and their subrecipients must create a level playing field on which DBEs can compete fairly for contracts; ensure that only firms that fully meet eligibility standards are permitted to participate as DBEs; help remove barriers to DBE participation; and assist the development of firms that can compete successfully in the marketplace outside the DBE program. Buy America Federal funds may not be obligated unless steel, iron, and manufactured products used in FTA funded projects are produced in the United States. Waivers include microcomputer equipment and software and purchases under $100,000. Grantees must also conduct pre-award and post-delivery audits of purchases of revenue rolling stock (vehicles) in order to verify that Buy America provisions, Federal Motor Vehicle Safety Standards, and purchaser’s requirements are met. Finally, as part of each application to FTA for the purchase or lease of any new bus model, or any bus model with a major change in configuration or components, the recipient must certify that the bus was tested at the FTA bus testing facility. Federal Requirements that Come with the Contract Selected contractors are subject to many FTA requirements. Third-party contracts must include provisions for FTA requirements, and grantees are responsible for ensuring that their contractors and subcontractors comply with applicable requirements. FTA’s Master Agreement contains a current, but not all-inclusive, description of statutory and regulatory requirements that may affect a recipient’s procurement. The Master Agreement states that applicable federal requirements will apply to project participants to the lowest tier necessary to ensure compliance with those requirements. States are expected to provide a mechanism to all contractors and subrecipients for access to the Master Agreement. A recipient will also need to include applicable federal requirements in each subagreement, lease, third party contract, or other document as necessary. Module 1.8: Introduction to Procurement LEVEL I - PAGE I-32

KEY CONCEPTS • Introduction to FTA-Required State and Local Planning Activities and their Interrelationships • MPO Planning • Statewide and Nonmetropolitan Planning • State and Regional Public Participation Methods • State Program of Projects • Transit Performance Evaluation IMPORTANCE FOR STATE DOT STAFF State DOTs must coordinate the statewide planning process with the planning activities of their MPOs, as well as with local officials and regional organizations responsible for transportation in non- metropolitan areas. Likewise, they must ensure that MPOs carry out the metropolitan planning process in coordination with the statewide process and with “due consideration of other related planning activities within the metropolitan area.” INTRODUCTION Maintaining, enhancing, and planning for a multi-modal transportation system involves numerous actors at the state, regional, metropolitan, and local levels. As the actors have varied resources, responsibilities, and priorities for the system, the federal government (i.e. FTA and FHWA) has an interest in encouraging coordination and consistency among transportation planning efforts. State DOTs and their subrecipients can draw on federal formula funding for planning through S. 5303 (Metropolitan Transportation Planning), S. 5304 (Statewide and Nonmetropolitan Transportation Planning) and S. 5305 (Planning Programs- Metropolitan Planning and State Planning and Research). These programs come with requirements to help ensure that the planning process is continuing, cooperative, and comprehensive across all levels. In urbanized areas, the transportation planning process is conducted by a Metropolitan Planning Organization (MPO), in cooperation with the state DOT and transit providers. In rural areas, transportation planning processes are carried out by the state, in cooperation with local officials in non-metropolitan areas and transit providers. FTA and FHWA jointly administer the federally required transportation planning processes in metropolitan areas. This module presents general state and regional/metropolitan planning requirements that state transit staff should be familiar with. Locally-focused transit planning is addressed separately in the Local Planning module. Module 1.9: State and Metropolitan Planning LEVEL I - PAGE I-33

State DOTs are also responsible for statewide transit planning and for transit planning efforts in non-urbanized areas. As designated recipients of planning funding under S. 5303, 5304, and 5305, states must fulfill their planning responsibilities while simultaneously accounting for the activities and concerns of multiple interested parties. DEFINITIONS Fiscal Constraint: a demonstration of sufficient funds (federal, state, local, and private) to implement proposed transportation system improvements, as well as to operate and maintain the entire system. Long-Range Statewide Transportation Plan: the State’s official, statewide, multimodal transportation plan covering a period of no less than 20 years, developed through the statewide transportation planning process. Metropolitan Planning Program (MPP): the federal financial assistance provided by FTA, under S. 5305, to support work activities necessary to conduct the federally required metropolitan transportation planning process. Metropolitan Planning Organization (MPO): a federally designated organization charged with carrying out the transportation planning process for an urbanized area with a population of 50,000 or more. Metropolitan Transportation Plan (MTP): the official multimodal transportation plan addressing no less than a 20-year planning horizon that is developed, adopted, and updated by the MPO. State Planning and Research Program (SPRP): the federal financial assistance provided by FTA under S. 5305 to support work activities necessary to conduct the federally required statewide transportation planning. Statewide Transportation Improvement Program (STIP): a statewide prioritized program of federally-funded transportation projects covering a period of four years that is consistent with the Long-Range Statewide Transportation Plan, MTPs, and Transportation Improvement Programs (TIPs), and required for projects to be eligible for funding. Module 1.9: State and Metropolitan Planning LEVEL I - PAGE I-34

Transportation Improvement Program (TIP): a prioritized listing/program of transportation projects covering a period of at least four years that is developed and formally adopted by an MPO as part of the metropolitan transportation planning process, consistent with the MTP, and required for projects to be eligible for funding. Unified Planning Work Program (UPWP): a program of work produced by an MPO that identifies the planning priorities and activities to be carried out during the next one to two years. LEVEL II PREVIEW Introduction to FTA-Required State and Local Planning Activities and their Interrelationships As a condition of receiving federal funds, state DOTs and their subrecipients must conduct a continuing, comprehensive, and coordinated multi-modal transportation planning process in metropolitan areas and statewide (“3-C” for short). The development of long-range plans and short-range programs of transportation investment priorities is a large part of the planning process. Under S. 5304, each state must develop a long-range statewide transportation plan (LRSTP) and a fiscally-constrained statewide transportation improvement program (STIP). Under S. 5303, each MPO must develop a fiscally-constrained metropolitan transportation plan (MTP) and a transportation improvement program (TIP). MPO Planning MPOs are federally designated organizations required in every urbanized area with a population of 50,000 or more. MPOs are intended to be forums for transportation decision making and investment, both for transit and other modes. Key functions include: • Preparing a long-range transportation plan (LRTP), aka metropolitan transportation plan (MTP), aka constrained long-range transportation plan (CLRTP/CLRP) • Preparing a complementary short-term transportation improvement program (TIP) • Preparing a unified planning work program (UPWP) • Preparing and carrying out a public participation plan Module 1.9: State and Metropolitan Planning LEVEL I - PAGE I-35

Statewide and Nonmetropolitan Planning States are the designated recipients and only entities eligible to apply for and receive S. 5305 funds directly from FTA. State DOTs can use these funds to carry out statewide transportation planning and to develop the LRSTP and the STIP, documents comparable to the LRTP and the TIP at the metropolitan level. Only projects in an approved STIP (and TIP) are eligible for federal funding. Key state DOT planning functions include: • Preparing a long-range statewide transportation plan (LRSTP) • Preparing a statewide transportation improvement program (STIP) • Preparing and carrying out a public participation plan State and Regional Public Participation Methods The state and MPOs have responsibilities regarding public participation while carrying out statewide and metropolitan planning. Both must document and use a public involvement plan that details strategies for engaging the public and responding to input. An example of participation includes providing the public with reasonable opportunities to review and comment on proposed plans. State Program of Projects Each state develops a Program of Projects (POP) as part of its annual application to FTA. Projects within the POP must be consistent with the STIP as well as the TIP for metropolitan areas in which proposed projects are located. The state develops its annual POP based on the subrecipient grant applications and locally developed public transit-human services transportation plans. For more information on state POPs, see the FTA Grant Administration module. Transit Performance Evaluation MAP-21 legislation places new emphasis on “a performance-driven, outcome-based approach” to both metropolitan and statewide planning, as described in S. 5303 and 5304. States and MPOs must establish performance targets to use in tracking progress towards the attainment of critical outcomes. However, U.S. DOT has yet to establish the performance measures. Module 1.9: State and Metropolitan Planning LEVEL I - PAGE I-36

KEY CONCEPTS • Subrecipient Applications/Local POPs • Relationship of Local Application/Local POP to STIP/TIP • Specialized Transportation Coordination • Transit Services Planning • Transit Performance Evaluation • City/County/Regional Planning • Land Use Planning • Planning Requirements for ITS Projects State transit staff should be aware of local planning activities, such as county and land use plans, and encourage their subrecipients to be engaged in these activities. States are responsible for ensuring that FTA-funded ITS projects conform to the National ITS Architecture, as well as to U.S. DOT-adopted ITS Standards, and that they are part of a locally approved Regional ITS Architecture. INTRODUCTION State transit staff should be familiar with a broad range of planning requirements and concepts, specifically those that pertain to subrecipients. Some of FTA’s planning requirements are embedded in topic areas (such as ADA and Title VI) and discussed in other modules of this curriculum. Many planning requirements have a public involvement component; these are summarized in the Public Participation module. Projects selected for funding under the S. 5310 program are subject to coordination planning requirements; the projects must be included in a locally developed, coordinated public transit-human services transportation plan. States and metropolitan areas have statewide and regional planning requirements that are addressed in the State and Metropolitan Planning module. Intelligent Transportation Systems (ITS) projects are also subject to special planning requirements that are described in this module. IMPORTANCE FOR STATE DOT STAFF FTA recipients have numerous planning requirements. States are responsible for ensuring that projects selected for S. 5310 funding are included in a locally developed, coordinated public transit-human services transportation plan. State transit staff should be familiar with basic transit service planning and evaluation concepts, to enable them to provide guidance to their subrecipients in planning local services, as well as to evaluate subrecipient services and systems using any state-established performance standards. Module 1.10: Local Planning LEVEL I - PAGE I-37

DEFINITIONS Metropolitan Planning Organization (MPO): a federally designated organization charged with carrying out the transportation planning process for an urbanized area with a population of 50,000 or more. Program of Projects (POP): A list of projects to be funded in a grant application submitted to FTA by a state or designated recipient. The POP lists the subrecipients and indicates what type of organization they are, a brief description of each project, total project cost, and federal share for each project. Statewide Transportation Improvement Program (STIP): a statewide prioritized program of federally-funded transportation projects covering a period of four years that is consistent with the Long-Range Statewide Transportation Plan, Metropolitan Transportation Plans, and Transportation Improvement Programs, and required for projects to be eligible for funding. Transportation Improvement Program (TIP): A prioritized listing/program of transportation projects covering a period of at least four years that is developed and formally adopted by an MPO as part of the metropolitan transportation planning process, consistent with the Metropolitan Transportation Plan, and required for projects to be eligible for funding LEVEL II PREVIEW Subrecipient Applications/Local POPs As noted in the State and Metropolitan Planning module, the state develops its annual POP based on subrecipient grant applications (as well as the locally developed public transit-human services transportation plans). As part of the grant application, states generally require subrecipients to apply for funding for specific projects—essentially to develop a local POP. Section 5307 recipients (including direct small urban recipients) are required to develop their own POP. The development of the POP must meet FTA public participation requirements. Module 1.10: Local Planning LEVEL I - PAGE I-38

Relationship of Local Application/Local POP to STIP/TIP At least every four years, each state submits a STIP for federal transportation funds. As is the case with the state’s POP, to be eligible for FTA funding, local POPs/project applications must be included in the STIP. If the local POPs/project applications are within a metropolitan area, they must also be included in the MPO’s TIP. Specialized Transportation Coordination Under SAFETEA-LU, funding through S. 5310, 5316, and 5317 required that projects be derived from a locally developed, coordinated public transit-human services transportation plan. This coordinated planning requirement was designed to be a participatory process including public, private, and human service transportation providers. Under MAP-21, this requirement continues to apply to S. 5310. States must ensure that their subrecipients are involved in the coordinated planning process. Importantly, the coordinated public transit-human services plan must reflect metropolitan and statewide plans, and vice versa. Transit Services Planning Transit service planning by individual transit providers often occurs as a result of state DOT requirements. With input from a board of directors and/or a transportation advisory committee, local systems or regional entities develop specific short-term transit plans, sometimes referred to as transportation development plans (TDPs). The TDP process may include a review of system goals and objectives, documentation of existing services and performance, assessment of unmet needs and other issues, recommendations for service alternatives and improvements, an implementation timeline, and a financial and capital plan. Local transit services planning is important from the perspective of the state because it provides a basis from which to project funding needs, not only in terms of paying for transit operations, but also paying for vehicles and facilities. Transit Performance Evaluation As noted in the State and Metropolitan Planning module, MAP-21 legislation requires that states and MPOs establish performance targets to use in tracking progress towards the attainment of critical outcomes, based on performance measures to be established Module 1.10: Local Planning LEVEL I - PAGE I-39

by U.S. DOT. While not an FTA requirement at this point, many states have established standard performance measures for their subrecipients (e.g. passenger trips per hour, operating cost per passenger trip, farebox recovery ratio, etc.). City/County/Regional Planning Planning at the city and county level involves local elected officials and local government staff. These actors conduct land use and transportation planning activities parallel to state and metropolitan planning processes. Though the plans are primarily jurisdiction- specific, they serve as important reference points for MPOs and states. States may also establish a regional planning structure to fulfill planning functions in nonmetropolitan areas, for example through regional planning organizations or planning district commissions. Land Use Planning Transportation and land use are closely linked: development influences regional travel patterns, while the transportation system influences new development and land use. The metropolitan and statewide transportation planning process should account for this reciprocal relationship, considering current and projected population growth, future residential and commercial development, employment trends, and economic activity. Planning Requirements for ITS Projects Intelligent Transportation Systems (ITS) projects are subject to special planning requirements. ITS refers to “the integrated application of advanced computer, electronics, and communications technologies to increase the safety and efficiency of surface transportation.” Transit communication technology interface is an example of an ITS project. ITS projects funded by FTA must conform to the National ITS Architecture, as well as to U.S. DOT-adopted ITS Standards. ITS projects and programs are also required to be a part of a locally approved Regional ITS Architecture. Module 1.10: Local Planning LEVEL I - PAGE I-40

KEY CONCEPTS • Program of Projects Public Participation Requirements • Public Participation in the Coordinated Public Transit- Human Services Transportation Planning Process • Public Comment on Fare and Service Changes • Title VI Public Participation Requirements • Public Review and Comment for Capital Projects (Environmental Planning) IMPORTANCE FOR STATE DOT STAFF State DOTs are responsible for ensuring that the state and its subrecipients involve the public in a meaningful way as decisions are made on transit programs, services, and fares. States (and their Metropolitan Planning Organizations) have responsibilities regarding public participation while carrying out statewide and metropolitan planning processes. States must document and use a public involvement plan that details strategies for engaging the public and responding to input. INTRODUCTION FTA grantees are subject to various public participation requirements. Each applicant for a S. 5307 grant must publish and afford an opportunity for a public hearing on its Program of Projects (POP). Section 5307 projects must also be included in applicable metropolitan area plans, which can help meet the POP public notice requirements. Section 5307 grantees are expected to have a written locally developed process for soliciting and considering public comment before raising a fare or carrying out a major transportation service reduction. Section 5310 and 5311 projects must be included in the Statewide Transportation Improvement Program (STIP), as well as certain metropolitan area plans that involve public input. Projects funded under S. 5310 must also be derived from a locally-developed coordinated public transit-human service transportation plan, developed with public participation. For all grantees, the content and considerations of Title VI, the Executive Order on Limited English Proficiency (LEP), and the DOT LEP Guidance must be integrated into each recipient’s established public participation plan or process. FTA grant applicants are also required to provide an adequate opportunity for public review and comment on capital projects, and, after providing notice, to hold a public hearing on the projects if they affect significant economic, social, or environmental interests. Module 1.11: Public Participation LEVEL I - PAGE I-41

LEVEL II PREVIEW Program of Projects (POP) Public Participation Requirements Section 5307 and Other Applications for Projects in Urbanized Areas Both federal planning regulations and S. 5307 require public participation for the POP in a S. 5307 application. The metropolitan transportation planning process must include a proactive participation plan that provides complete information, timely public notice, reasonable public access to key decisions, and early and continuing involvement of the public in developing plans and Transportation Improvement Programs (TIPs). FTA-funded projects within a metropolitan area must be programmed in the TIP to be eligible for funding. S. 5307 grantees have specific requirements for public participation related to the POP. In certain circumstances, FTA allows a grantee to rely on the locally adopted public participation requirements for the TIP in lieu of the process required in the development of the POP. A grantee may also rely on its own process to satisfy POP public participation requirements. Section 5310 To be eligible for funding, S. 5310 projects in urbanized areas must be included in the Metropolitan Transportation Plan prepared and approved by the MPO, the TIP approved jointly by the MPO and the governor, and the Statewide Transportation Improvement Program (STIP) developed by a state and jointly approved by FTA and the Federal Highway Administration (FHWA). Projects outside urbanized areas must be included in, or be consistent with, the Statewide Long-Range Transportation Plan, as developed by the state, and must be included in the STIP. Section 5311 A state requesting S. 5311 assistance must comply with the planning requirements of 49 USC 5303 through 5305. Projects proposed for S. 5311 funding must be a product of the statewide and non-metropolitan transportation planning process and/or the Module 1.11: Public Participation LEVEL I - PAGE I-42

metropolitan planning process. States must include S. 5311 funds in the STIP. FTA does not require public participation for individual S. 5311 subrecipient operating grant applications, but some states require similar public notice as is required for S. 5307 POPs. Public Participation in the Coordinated Public Transit-Human Services Transportation Planning Process States certify that locally developed, coordinated public transit-human services transportation plans (from which S. 5310 projects must be derived—see the Planning module for more information) are developed through a process that included representatives of public, private, and non-profit transportation and human services providers, and participation by members of the public. Stakeholders should have reasonable opportunities to be actively involved in the decision-making process at key decision points, including, but not limited to, development of the proposed coordinated plan document. Public Comment on Fare and Service Changes (S. 5307 only) Annually, S. 5307 grantees certify that they have a locally developed process to solicit and consider public comment prior to raising a fare or implementing a major reduction in public transportation service. Grantees are expected to have a written policy that describes the public comment process, and the policy should provide an opportunity for a public hearing or meeting. States must ensure compliance from their S. 5307 subrecipients. Although FTA only requires this public comment process for S. 5307 recipients, some states apply this requirement to S. 5311 subrecipients as well. Title VI Public Participation Requirements The content and considerations of Title VI, the Executive Order on LEP, and the DOT LEP Guidance must be integrated into each recipient’s established public participation plan or process. Grantees have wide latitude to determine how, when, and how often specific public participation activities should take place, and which specific measures are most appropriate. Grantees should make these determinations based on a demographic analysis of the population(s) affected, the type of plan, program, and/or service under consideration, and the resources available. The state is responsible for ensuring that subrecipients comply with Title VI requirements. Additional requirements are detailed in the Title VI module. Module 1.11: Public Participation LEVEL I - PAGE I-43

Public Review and Comment for Capital Projects (Environmental Planning) Any application for a capital project that will “substantially affect a community or the public transportation service of a community” must include a certification to the effect that the applicant has provided an adequate opportunity for public review and comment; held a public hearing on the project; considered the economic, social, and environmental effects of the project; and found that the project is consistent with official plans for developing the community. These requirements are also satisfied through compliance with the National Environmental Policy Act (NEPA). NEPA requirements include a public scoping process, public review and comment on NEPA documents, and a public hearing on every draft environmental impact statement (EIS). Module 1.11: Public Participation LEVEL I - PAGE I-44

KEY CONCEPTS • Real Property • Equipment • Maintenance • Transit Asset Management Planning and Reporting Requirements Established by MAP-21 IMPORTANCE FOR STATE DOT STAFF States are responsible for monitoring the use of FTA-funded real property, facilities, and equipment. Assets that are not maintained in a state of good repair present potential risks, including safety, service unavailability, and high maintenance and repair costs. Systematically planning for asset replacement enables subrecipients and the state to proactively plan for funding capital replacements so as to be better able to maintain a systemwide state of good repair. INTRODUCTION States (and their subrecipients) must maintain control over real property, facilities, and equipment and ensure that they are used in transit service. States (and their subrecipients) must keep federally funded equipment and facilities in good operating condition. MAP-21 establishes new requirements for transit asset management as well as new reporting requirements. FTA grantees will be required to develop transit asset management plans, establish targets for related performance measures, and submit reports. The MAP-21 FTA asset management compliance requirements related to planning and reporting have not yet been determined. Asset management requirements are intended to ensure that FTA-funded assets are: • used appropriately, • under the control of the grantee, • adequately maintained, • replaced at the appropriate time, and • adequately documented. Module 1.12: Asset Management LEVEL I - PAGE I-45

DEFINITIONS Asset: equipment, rolling stock, infrastructure, and facilities for use in public transportation; owned or leased by a recipient or subrecipient of FTA financial assistance. Equipment: an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the governmental unit for financial statement purposes, or $5,000. Equipment includes rolling stock and all other such property used in the provision of public transit service. Facilities: all or any portion of a building or structure including roads, walks, and parking lots. Preventive Maintenance: all maintenance costs related to vehicles and non-vehicles. Specifically, all the activities, supplies, materials, labor, services, and associated costs required to preserve or extend the functionality and serviceability of the asset in a cost effective manner, up to and including the current state of the art for maintaining such an asset. Real Property: land, including affixed land improvements, structures, and appurtenances. It does not include movable machinery and equipment. Transit Asset Management Plan: a plan developed by a recipient of FTA funding that includes, at a minimum, capital asset inventories and condition assessments, decision support tools, and investment prioritization; the recipient certifies compliance with the rule issued under 49 USC Section 5326. A transit asset management plan allows for the estimation of capital investment needs over time. Transit Asset Management System: a strategic and systematic process of operating, maintaining, and improving public transportation capital assets effectively throughout the life cycle of such assets. Useful Life: the expected lifetime of project property, or the acceptable period of use in service. Useful life of revenue rolling stock begins on the date the vehicle is placed in revenue service and continues until it is removed from service. Module 1.12: Asset Management LEVEL I - PAGE I-46

LEVEL II PREVIEW Preventive Maintenance State are responsible for ensuring that subrecipients maintain FTA-funded vehicles, facilities, and facility related equipment in good operating order. Each state is required to develop maintenance requirements for FTA-funded vehicles to protect the federal interest and ensure that the equipment is maintained in good operating order. States or their subrecipients are also required to develop written maintenance plans for FTA-funded facilities and facility-related equipment. State of Good Repair Generally speaking, the expression “state of good repair” refers to good, functional condition when describing a transit asset. MAP- 21 established a new State of Good Repair program dedicated to repairing and upgrading the nation’s rail transit systems along with high-intensity motor bus systems that use high occupancy vehicle lanes, including bus rapid transit (BRT). MAP-21 also requires FTA to define the term “state of good repair” to include “objective standards for measuring the condition of capital assets of recipients, including equipment, rolling stock, infrastructure, and facilities.” Transit Asset Management Prior to MAP-21, the FTA State Management Review workbook used the term “asset management” to refer to how a grantee manages how its assets are used and maintained, and at what point they become eligible for FTA replacement funding. With MAP-21, FTA has also begun to use “transit asset management” to describe a holistic approach to having a handle on what assets a grantee owns, what condition they are in, how well they are working, and when they should ideally be replaced. Transit asset management planning can be described as a strategic and systematic approach to managing transit physical assets. It focuses on business and engineering processes for resource allocation and utilization, with the objective of better decision making based upon quality information and well-defined objectives. Transit asset management is a way of being proactive in managing how and when to spend capital resources, rather than reactive in waiting until things are at a crisis stage. Transit asset management planning can be conducted a different levels of complexity/maturity. Module 1.12: Asset Management LEVEL I - PAGE I-47

Satisfactory Continuing Control Continuing control refers to a grantee’s control over the use of an FTA-funded asset. FTA requires that grantees maintain “satisfactory continuing control” over FTA-funded vehicles, facilities, etc. even if they are being used (e.g., through a lease agreement) by another organization. States and subrecipients are responsible for maintaining control over their FTA-funded assets, and states are responsible for ensuring that this control is maintained, through various monitoring activities. Useful Life With the exception of land, each asset has a life expectancy (often referred to as “useful life” or “service life”) in years and sometimes in usage units (such as vehicle miles). An asset that has reached the end of its useful life is essentially worn out, and must be replaced or at least overhauled/refurbished. To reach their full useful life expectancy, assets and their components generally require both preventive maintenance and corrective maintenance. As an asset ages, even with a good preventive maintenance program in place, it is likely to need an increasing amount of corrective maintenance, simply because older components wear out. Therefore older assets likely to cost more money to keep in operating condition (i.e. a state of good repair) than younger assets. At some point, it becomes more cost-effective to replace the asset rather than continuing to repair it. An asset that has not yet reached its useful life has what is referred to as residual life, or the number of years or service units remaining until the end of its useful life. Module 1.12: Asset Management LEVEL I - PAGE I-48

KEY CONCEPTS • Public Transit Agency Safety Plans • State Safety Oversight • Public Transportation Safety Certification Training Program • Funding for Employee Safety Training • Currently Available FTA Guidance • One Percent of S. 5307 Funds on Security Projects • Safety-Related Elements in Other FTA Requirements IMPORTANCE FOR STATE DOT STAFF States may have oversight responsibility of subrecipient agency safety plans once the final rule for 49 CFR 5329 is established. FTA has not yet determined these responsibilities. In the interim, state staff should stay abreast of FTA development of regulations and follow your state’s current policies and procedures related to subrecipient safety and security requirements. INTRODUCTION Section 5329 of MAP-21 requires that all recipients of FTA funding develop an agency safety plan and certify that the plan meets FTA requirements. Within one year after FTA issues a final rule on this requirement, each state or recipient of S. 5307 or S. 5311 funds must develop, implement, and certify a public transit agency safety plan. FTA has published an Advanced Notice of Proposed Rulemaking regarding aspects of the Section 5329 safety and asset management requirements to solicit public comment prior to developing this rule. In the interim before the FTA final rule is issued, FTA encourages transit providers to begin implementing the statutory requirements of the transit agency safety plan. States are advised to begin to assist, and/or require their subrecipients to prepare agency safety plans that include the general areas required under MAP-21. Existing voluntary FTA safety and security planning guidance is available. Section 5307 grantees must annually certify that they are spending at least one percent of such funds for transit security projects, or that such expenditures for security systems are not necessary. Module 1.13: Safety and Security LEVEL I - PAGE I-49

LEVEL II PREVIEW 49 USC 5329 provides FTA with the authority to establish a new comprehensive framework to oversee the safety of public transportation throughout the United States. The law requires, among other things, that DOT issue a national public transportation safety plan, establish safety performance criteria for all modes of public transportation, define a “state of good repair,” establish minimum safety performance standards for public transportation vehicles, and develop a safety certification training program. In addition, public transportation agencies must establish comprehensive agency safety plans for their operations. National Public Transportation Safety Plan 49 USC 5329 requires FTA to create and implement a national public transportation plan to improve the safety of all public transportation systems that receive FTA financial assistance. The national safety plan will be applicable to each FTA recipient and include: (1) safety performance criteria; (2) the definition of state of good repair; (3) a safety certification training program; and (4) vehicle performance standards. Once the criteria and standards are established, transit systems will be required to set targets based on the measures, reflecting the yet-to-be-determined definition of state of good repair. These targets will be part of the transit agency safety plan (described below) and incorporated into the metropolitan and statewide planning processes. Public Transit Agency Safety Plans Within one year after FTA issues a final rule on the requirement to develop an agency safety plan and certify that the plan meets FTA requirements, each state or recipient of S. 5307 or S. 5311 funds must develop, implement, and certify an agency safety plan. State Safety Oversight While MAP-21 established that subrecipients of S. 5311 as well as small transit providers funded by S. 5307 may have their plans drafted or certified by their state, FTA has not yet defined “small transit providers” and determined what the responsibilities of the states will be in the plan development and certification process. MAP-21 also established the requirement for an FTA State Safety Oversight (SSO) Program specifically for oversight of rail systems. Each state with rail systems not regulated by the Federal Railroad Administration (FRA) is subject to the yet-to-be developed FTA requirements for SSO programs. Module 1.13: Safety and Security LEVEL I - PAGE I-50

Safety Certification Training Program Part of 49 USC 5329 requires FTA to establish a Public Transportation Safety Certification Training Program applicable to federal and state employees, contractors who conduct oversight, and those employees at transit systems who are responsible for safety oversight. Recipients of S. 5307 or S. 5311 funds may use up to 0.5 percent of apportioned formula funds to pay for up to 80 percent of the costs of an applicable transit agency employee’s participation in the Safety Certification Training Program. Currently Available FTA Guidance Until new FTA safety requirements are established, states can follow the recommendations of existing FTA guidance, including the April 2003 Model Bus Safety and Security Program Memorandum of Understanding and FTA’s Transit Bus Safety Program website. Many states have established their own requirements for subrecipients based on FTA guidance. Some states require each subrecipient to prepare its own Safety, Security, and Emergency Preparedness Plan (SSEPP) or System Safety Program Plan (SSPP). For information about your state’s safety- and security-related requirements for subrecipients, consult your state’s SMP, grant application packages, and other guidance provided to subrecipients. Module 1.13: Safety and Security LEVEL I - PAGE I-51

KEY CONCEPTS • Threshold for subrecipients • Oversight of applicable subrecipients - EEO Officer designation - utilization analysis - narrative and statistical assessment of employment practices - monitoring and reporting system • States should educate subrecipients on the FTA EEO requirements and be able to answer questions on what a subrecipient needs to do to comply with these requirements. • States must include EEO in the certifications and assurances in the subrecipient grant application package, as well as in the grant agreement. • States must monitor subrecipient funding levels and organizational size to determine which subrecipients meet the threshold for an EEO program, and should document this monitoring. • For subrecipients that cross the threshold in the previous funding year, states must obtain an EEO program that meets FTA INTRODUCTION State DOTs must ensure that their subrecipients do not discriminate against any employees or applicants for employment because of race, color, religion, national origin, sex, or age. In addition, recipients and subrecipients must take affirmative actions to employ minorities and women. As stated in 49 USC 5332(b), “no person in the United States shall on the grounds of race, color, religion, national origin, sex, or age be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any project, program or activity funded in whole or in part through financial assistance under this Act.” IMPORTANCE FOR STATE DOT STAFF States are responsible for oversight of subrecipient compliance with Equal Employment Opportunity (EEO) requirements. Module 1.14: Equal Employment Opportunity (EEO) LEVEL I - PAGE I-52

requirements (i.e. review and evaluate for compliance), upload the plan into TEAM, and obtain an updated plan at least every three years. • States should include review of the subrecipient’s EEO program as part of the site and other compliance reviews it conducts. This includes review of documentation that demonstrates that the subrecipient is following its EEO program. • States should monitor the status of any EEO-related complaint reported by a subrecipient. DEFINITIONS Affirmative Action Plan: a written, detailed, results-oriented set of procedures designed to achieve prompt and full utilization of minorities and women at all levels in all parts of the recipient’s work force. Concentration: a higher representation of minorities and/or women in a job category or department as compared to their representation in the labor market. Transit related employee: an employee of an FTA applicant, recipient, or subrecipient who is involved in an aspect of an agency’s mass transit operation funded by FTA. Underutilization: a lower representation of minorities and/or women in a job category or department as compared to their representation in the labor market. Module 1.14: Equal Employment Opportunity (EEO) LEVEL I - PAGE I-53

LEVEL II PREVIEW Federal Threshold Requirements An EEO program is required of all subrecipients that both: 1) employ 50 or more transit-related employees (including temporary, full, and part-time), and 2) received capital or operating assistance in excess of $1 million or planning assistance in excess of $250,000 in the previous federal fiscal year. EEO Program Components Those subrecipients meeting the above threshold must develop, implement, and monitor an effective EEO program. Updates are required every three years and must be uploaded to TEAM. States upload the programs submitted by subrecipients into TEAM. The program has seven required components. 1. Statement of Policy. The EEO program must include a statement issued by the CEO detailing the agency’s commitment to EEO and to undertaking an affirmative action plan. The statement must be placed in conspicuous locations, making employees and applicants aware of the EEO commitment. 2. Dissemination. Recipients must have formal mechanisms to publicize and disseminate the EEO policy to applicants, employees, and the general public. 3. Designation of Personnel Responsibility. An EEO program officer/manager has primary responsibility for administering and implementing the EEO program and should be identified in all program submissions. 4. Utilization Analysis. The utilization analysis identifies job categories where an underutilization and/or concentration of women or minorities exists in relation to their availability in the labor market. It also establishes goals, timetables, and other affirmative actions to correct employment practices that contributed to any underutilization or concentration. Module 1.14: Equal Employment Opportunity (EEO) LEVEL I - PAGE I-54

5. Goals and Timetables. Recipients must set specific percentage and numerical goals with timetables to eliminate any gaps (i.e. underutilization) identified in the analysis. 6. Assessment of Employment Practices. Recipients must conduct an assessment of present employment practices to identify those that may be barriers contributing to underutilization. 7. Monitoring and Reporting. The EEO program should include a monitoring and reporting system that assesses accomplishments, evaluates the program, and prompts corrective actions. Sub-Recipient Oversight The state is responsible for ensuring that its subrecipients are in compliance—it must have an approved affirmative action plan on file for all subrecipients that meet the threshold requirements. The state must document its review of the plans for adequacy in terms of the seven components. Notes on Differing State Program Approaches Some states require an EEO program of subrecipients that do not meet the minimum thresholds, or they may require a subset of the program elements of all subrecipients with the full gamut of FTA-required elements only for those subrecipients that meet minimum thresholds. State transit staff need to be familiar with what their specific state requires, and should also be familiar with the FTA requirements and where they differ. Oversight of subrecipient EEO programs may be a responsibility of a different office or division within your department than other areas of FTA program oversight. For example, this responsibility may be located within that state DOT office of civil rights, fair practices, or the like. This office may oversee all EEO requirements for the state, including those required by FHWA and other administrations within U.S. DOT. State transit program staff need to know which office is responsible for EEO oversight. Module 1.14: Equal Employment Opportunity (EEO) LEVEL I - PAGE I-55

KEY CONCEPTS • Prevailing Wage Requirement • Employee Protective Arrangements - DOL Certification - National (Model) Agreement - Special Warranty for Rural Areas - Special Warranty Notice to Employees As a recipient of FTA funds, the state must ensure that it and its subrecipients comply with labor standards and protect their employees. DOL is responsible for compliance oversight on these requirements. If DOL finds that a S. 5311 applicant does not fulfill the procedures and requirements of the Special Warranty, the applicant would be ineligible for federal funds until the non-compliance issue is resolved. INTRODUCTION All recipients (and subrecipients) of FTA funding must comply with labor standards detailed in 49 USC 5333. The labor standards involve two parts: prevailing wages and employee protective arrangements. The latter involves the bulk of the requirements. When federal funds are used to acquire, improve, or operate a transit system, federal law requires arrangements to protect the rights of affected transit employees. The terms and conditions of the protective arrangements are included in the grantee’s contract with the FTA. The requirement to protect transit employees is contained in 49 USC 5333(b) (formerly Section 13(c) of the Federal Transit Act). Projects funded under S. 5311 must satisfy the employee protection requirements of Section 5333(b), but this is accomplished through an expedited procedure administered by the Department of Labor (DOL) and based on the application of the “Special Section 13(c) Warranty.” IMPORTANCE FOR STATE DOT STAFF Federal law requires the protection of the rights and interests of transit employees who are impacted by projected FTA funding. Before FTA may award a grant for capital or operating assistance, fair and equitable arrangements must be in place for transit employees. Module 1.15: Labor Protection/Special Warranty LEVEL I - PAGE I-56.

To ensure subrecipient compliance: • States should educate subrecipients on the labor standards and on their responsibilities to both DOT and DOL. • States must require Special Warranty certification and submission of DOL-required information as part of S. 5311 subrecipient applications. • States must include the terms and conditions of the protective arrangement in subrecipient grant agreements. DEFINITIONS Davis-Bacon Act: enacted in 1931, the Act (as amended) requires paying local prevailing wages on public works projects, including construction projects funded by FTA valued at $2,000 or more. National (Model) Agreement: a protective agreement entered into in July 1975 by representatives of the American Public Transit Association, Amalgamated Transit Union, Transport Workers Union of America, AFL-CIO, Railway Labor Executives’ Association, Brotherhood of Locomotive Engineers, Brotherhood of Railway and Airline Clerks, and International Association of Machinists and Aerospace Workers. The Agreement is certified by DOL as fair and equitable and is thus a source document for the standard terms and conditions of employee protective arrangements. Special Warranty: formalized by DOL and DOT in May 1979, the Special Warranty is the protective arrangement applicable to the S. 5311 program. It provides fair and equitable arrangements to protect the interests of employees and meets the requirements of 49 USC 5333(b). Module 1.15: Labor Protection/Special Warranty LEVEL I - PAGE I-57

LEVEL II PREVIEW Prevailing Wage Requirement Prevailing wages mean that for construction projects only, laborer and mechanic contractors and subcontractors must “be paid wages not less than those prevailing on similar construction in the locality...” Prevailing wages are determined by the Secretary of the DOL in accordance with 40 USC Chapter 31, also known as the Davis-Bacon Act. Employee Protective Arrangements FTA funding is conditioned on employee protective arrangements. Employee protective arrangements cover employees involved in projects funded under S. 5307, 5308, 5309, 5312, 5316, 5337, and 5339. DOL must certify the protective arrangements prior to FTA award of funding. DOL certification verifies that the terms and conditions of the arrangement are fair and equitable, following the DOL’s “Guidelines, Section 5333(b), Federal Transit Law” (29 CFR 215). The arrangements must include provisions regarding the following: • the preservation of rights, privileges, and benefits under existing collective bargaining agreements, • the continuation of collective bargaining rights, • the protection of individual employees against a worsening of their positions related to employment, • assurances of employment to employees of acquired public transportation systems, • assurances of priority of reemployment, and • paid training or retraining programs. Unified Protective Arrangement For employees of urbanized FTA applicants who do not already have a protective arrangement (i.e., a labor union) in place, DOL draws on a document called the Unified Protective Arrangement. This document sets forth terms and conditions the FTA recipient must comply with for the protection of the transportation related employees in the transportation service area of the project. Module 1.15: Labor Protection/Special Warranty LEVEL I - PAGE I-58

National (Model) Agreement Employee protections can be developed through local negotiations between transit providers and employees/labor organizations. However, parties can also adopt the National (Model) Agreement as a ready-made employee protective arrangement. The National (Model) Agreement was executed in 1975 by representatives of the American Public Transportation Association, the Amalgamated Transit Union, the Transport Workers Union of America, and multiple other labor organizations. It provides fair and equitable arrangements to protect the interests of employees in general purpose operating assistance project situations and meets the requirements of 49 USC 5333(b). Special Warranty for Rural Areas Projects in rural areas funded through S. 5311 have different employee protective arrangement requirements: DOL‘s Special Warranty, originally known as the Special 13(c) Warranty. The Special Warranty allows for an expedited procedure administered by DOL, protecting the labor rights of employees without the necessity for DOL review of each individual subrecipient’s application. Instead, DOL reviews the state’s Section 5333(b) submittals for its S. 5311 application. DOL procedures under the Warranty require that state agencies applying for S. 5311 funds must take certain steps to demonstrate that the terms of the Warranty are understood and agreed to by the recipients of funds. Additionally, the Warranty requires that recipients (and subrecipients) post, in a prominent and accessible place, the terms and conditions of the Warranty with a notice stating that the recipient has agreed to comply with these terms. Employees who believe they have been affected as a result of federal transit assistance may file claims with DOL under the Warranty. This means that the state (and its subrecipients) must make the necessary arrangements so that covered employees (or their union representative) may file such a claim. Module 1.15: Labor Protection/Special Warranty LEVEL I - PAGE I-59

KEY CONCEPTS • Drug and Alcohol Program for Safety-Sensitive Employees • Drug-Free Workplace Act Policy and Program DEFINITIONS Accident: an occurrence associated with the operation of a vehicle, if as a result: (1) An individual dies; or (2) An individual suffers bodily injury and immediately receives medical treatment away from the scene of the accident; or (3) With respect to an occurrence in which the mass transit vehicle involved is a bus, electric bus, van, or automobile, one or more vehicles incurs disabling damage as the result of the occurrence and such vehicle(s) are transported away from the scene by a tow truck or other vehicle; or INTRODUCTION Recipients of S. 5307, 5309, or 5311 funds must have a drug and alcohol testing program in place for all safety-sensitive employees. Grantees that receive an award directly from a federal agency are required to maintain a drug-free workplace for all employees and to have an ongoing drug-free awareness program. The drug-free workplace and awareness requirements do not apply to subrecipients but do apply to the state DOT as an employer. IMPORTANCE FOR STATE DOT STAFF States are responsible for passing through drug and alcohol testing requirements; providing technical assistance in understanding and meeting the requirements; and overseeing the drug and alcohol programs of subrecipients and their contractors, subcontractors, and lessees with safety-sensitive employees. The oversight program must ensure that all aspects of the drug and alcohol programs, including use of vendors and vendor activities, are in compliance with 49 CFR Part 655, Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations, as amended, and 49 CFR Part 40, Procedures for Transportation Workplace Drug and Alcohol Testing Programs, as amended. Module 1.16: Drug and Alcohol Testing and Drug-Free Workplace Act Programs LEVEL I - PAGE I-60

(4) With respect to an occurrence in which the public transportation vehicle involved is a rail car, trolley car, trolley bus, or vessel, the public transportation vehicle is removed from operation. Covered Employee: a person, including an applicant or transferee, who performs or will perform a safety-sensitive function. Safety-Sensitive Function: any of the following duties, when performed by employees of recipients, subrecipients, operators, or contractors: (1) Operating a revenue service vehicle, including when not in revenue service; (2) Operating a nonrevenue service vehicle, when required to be operated by a holder of a Commercial Driver’s License; (3) Controlling dispatch or movement of a revenue service vehicle; (4) Maintaining (including repairs, overhaul and rebuilding) a revenue service vehicle or equipment used in revenue service (not applicable in all cases). (5) Carrying a firearm for security purposes. LEVEL II PREVIEW Drug and Alcohol Program for Safety-Sensitive Employees Applicability Recipients of S. 5307, 5309/5339, or 5311 funds must have a drug and alcohol testing program in place for all safety-sensitive employees. FTA drug and alcohol testing requirements may not apply to grantees that receive FTA funds exclusively for facilities and do not operate service under S. 5307, 5309/5339, or 5311 if these funds can be segregated from other program funds. Other entities may be subject to FTA drug and alcohol requirements in certain circumstances. These include volunteer drivers, subrecipients that operate ferry systems, maintenance contractors, taxicab companies, and contracted off-duty police officers. The applicability of drug and alcohol testing depends on the nature of the service/work involved. Module 1.16: Drug and Alcohol Testing and Drug-Free Workplace Act Programs LEVEL I - PAGE I-61

Required Policies Subrecipients (and their contractors, subcontractors, and lessees) with safety-sensitive employees must have a drug and alcohol policy detailing the provisions of their drug and alcohol program. The following checklist identifies the minimum requirements of a policy as defined by 49 CFR 655.15: • Proof of policy adoption by the appropriate governing body with effective date indicated. • Identity of the person designated by the employer to answer questions about the anti-drug and alcohol misuse program. • Categories of employees who are subject to testing. • Prohibited behavior, including when the regulations prohibit the use of alcohol and drugs. • Testing circumstances for drugs and alcohol. • Drug and alcohol testing procedures consistent with 49 CFR Part 40, as amended. • Requirement that covered employees submit to drug and alcohol testing administered in accordance with FTA regulations. • Description of the behavior and circumstances that constitute a refusal to take a drug and/or alcohol test and a statement that a refusal constitutes a verified positive test result. • Description of the consequences for a covered employee who has a verified positive drug test result or a confirmed alcohol test with an alcohol concentration of 0.04 or greater. If the system has a second chance policy, a description of the evaluation and treatment processes. • Description of the consequences for covered employees found to have an alcohol concentration of 0.02 or greater but less than 0.04. Substances Tested The following substances are required to be tested for: marijuana, cocaine, opiates, phencyclidine, amphetamines, and alcohol. Types of Testing Six types of testing are required: 1) pre-employment (mandatory for drugs and optional but consistent for alcohol), 2) random, 3) post-accident, 4) reasonable suspicion, 5) return to duty, and 6) follow-up. Module 1.16: Drug and Alcohol Testing and Drug-Free Workplace Act Programs LEVEL I - PAGE I-62

Pre-Employment Procedures Subrecipients with safety-sensitive employees, after obtaining an employee’s written consent, must request information from the employee’s previous employers on the DOT drug and alcohol testing history of anyone seeking to begin safety-sensitive duties for the subrecipient for the first time. If the employee refuses to provide written consent, the subrecipient must not permit the employee to perform safety-sensitive functions. If the subrecipient obtains information that the employee has violated a DOT agency drug and alcohol regulation, it must not use the employee to perform safety-sensitive functions unless it also obtains information that the employee has subsequently complied with return-to-duty requirements. Random Testing Subrecipients are responsible for conducting drug and alcohol tests on all covered employees on a random basis. Random tests must be selected using a scientifically valid method and with no discretion by managers. Subrecipients must ensure that the dates for administering random tests are spread reasonably throughout the calendar year, and testing must be conducted on all days and hours during which safety-sensitive functions are performed. Random testing rates of safety sensitive employees must be conducted at levels specified by FTA. The current minimum annual random testing rate for drugs is 25 percent of the number of safety sensitive employees. The current minimum annual random testing rate for alcohol is 10 percent. Post Accident Testing FTA requires that a DOT post-accident test be administered under two circumstances: 1) in the event of a fatal accident involving a transit vehicle; and 2) in the event of a non-fatal accident involving a transit vehicle. Subrecipients with safety-sensitive employees are required to test all covered employees operating the vehicle at the time of the accident and any other covered employee whose performance may have contributed to the accident (unless determined otherwise in nonfatal cases). Module 1.16: Drug and Alcohol Testing and Drug-Free Workplace Act Programs LEVEL I - PAGE I-63

Monitoring Vendors The state, as the grantee, is ultimately responsible for the integrity of the drug and alcohol testing program and the quality of testing services provided by vendors. Consequently, the state should ensure that subrecipients have a written contract that references 49 CFR Part 40 with each vendor and should monitor the quality of testing service vendors, including collection sites, medical review officers, and substance abuse professionals. States need only ensure that testing laboratories are HHS certified. The state should not assume that vendors are following the correct procedures or that they are knowledgeable about FTA regulations. Note that FTA does not prescribe how a state must monitor vendors. The state simply must show evidence that monitoring is being performed at some level. Reporting - Annual Calendar Year Management Information System (MIS) FTA recipients and subrecipeints prepare and maintain a summary of the results of their anti-drug and alcohol misuse testing programs performed during the previous calendar year. Subrecipients and the state must prepare, maintain, and submit to FTA annual MIS reports and collect, maintain, and submit annual MIS reports for S. 5307, 5309, and 5311 subrecipients, contractors, subcontractors, and lessees with safety sensitive employees summarizing drug and alcohol program testing results. Drug-Free Workplace Act Policy and Program Grantees that receive an award directly from a federal agency are required to maintain a drug-free workplace for all employees and to have an ongoing drug-free awareness program. The drug-free workplace requirements do not apply to subrecipients. Module 1.16: Drug and Alcohol Testing and Drug-Free Workplace Act Programs LEVEL I - PAGE I-64

KEY CONCEPTS • Process for Handling and Resolving Complaints • When Accessible Vehicles Must be Purchased • Accessibility Features in Buses and Vans • Facilities Accessibility • General Service Requirements • Service Requirements Specific to Fixed-Route • Maintenance of Accessibility Features • Complementary Paratransit Requirements • Intercity Bus Service • Ferry Service States are responsible for oversight of subrecipient compliance with ADA. When making decisions about which services to fund, states should closely examine the service description with an eye toward service accessibility and ADA compliance. The ADA regulations are complex, particularly when ADA complementary paratransit is required. State transit programs have an important role in helping subrecipients get the training and technical assistance they need to be fully compliant. In addition, state staff members who develop specifications for state- procured vehicles, as well as those who conduct pre-award and post- delivery audits, need to be knowledgeable about ADA standards for vehicle accessibility. INTRODUCTION Titles II and III of the Americans with Disabilities Act of 1990 (ADA) provide that no entity shall discriminate against an individual with a disability in connection with the provision of transportation service. The law sets forth specific requirements for vehicle and facility accessibility and the provision of service, including access to fixed route bus and rail and complementary paratransit service. IMPORTANCE FOR STATE DOT STAFF Compliance with ADA requirements and accessibility of FTA-funded transportation services is critical for enabling people with disabilities to live independent, productive lives. In addition to S. 5310, people with disabilities along with seniors make up a significant portion of the riders of typical S.5311-funded service. Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-65

DEFINITIONS Accessible: with respect to vehicles and facilities, complying with the accessibility requirements of 49 CFR Parts 37 and 38. As a general term, accessible is used to describe services, equipment, and facilities that people with disabilities are able to use or access. Complementary Paratransit: comparable transportation service required by the ADA for individuals with disabilities who are unable to use fixed route transportation systems. Demand Responsive Service or System: any system of transporting individuals, including the provision of designated public transportation service by public entities and the provision of transportation service by private entities, which is not a fixed route system. Disability: with respect to an individual, a physical or mental impairment that substantially limits one or more of the major life activities of such individual; a record of such an impairment; or being regarded as having such an impairment. Facility: all or any portion of buildings, structures, sites, complexes, equipment, roads, walks, passageways, parking lots, or other real or personal property, including the site where the building, property, structure, or equipment is located. Fixed Route Service or System: a system of transporting individuals, including the provision of designated public transportation service by public entities and the provision of transportation service by private entities, in which a vehicle is operated along a prescribed route according to a fixed schedule. Operates: with respect to a fixed route or demand responsive system, the provision of transportation service by a public or private entity itself or by a person under a contractual or other arrangement or relationship with the entity. Private Entity: any entity other than a public entity. Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-66

Public Entity: any state or local government; any department, agency, special purpose district, or other instrumentality of one or more state or local governments; and the National Railroad Passenger Corporation (Amtrak) and any commuter authority. Wheelchair: a mobility aid belonging to any class of three or more-wheeled devices, usable indoors, designed or modified for and used by individuals with mobility impairments, whether operated manually or powered. LEVEL II PREVIEW ADA prohibits discrimination against people with disabilities in the areas of employment, public services including transportation, public accommodations including services operated by private entities, and telecommunications. This civil rights law sets forth specific requirements for public transportation services, vehicle and facility accessibility, and the provision of complementary paratransit service, as well as overall requirements for a complaint process, codified by U.S. DOT in 49 CFR Part 37. When Accessible Vehicles Must be Purchased ADA requirements vary for public and private entities, as well as whether a vehicle is to be used in fixed route or demand responsive operations. However, all FTA subrecipients are subject to the requirements for public entities (even if the subrecipient is a private entity) for their FTA-funded services. Also, private entities that are contracted by public entities are still subject to the requirements; the private contractor is “standing in the shoes of” the public entity. All new buses and vans purchased or leased by public entities operating fixed route service must be accessible. Public entities operating demand-responsive service for the general public must purchase or lease accessible vehicles unless it can be demonstrated that the system, when viewed in its entirety, provides a level of service to persons with disabilities, including persons who use wheelchairs, that is equivalent to the level of service it provides to persons without disabilities. Accessibility Features in Buses and Vans Certain accessibility features must be installed in vehicles, as regulated in 49 CFR Part 38: accessible lift or ramp entries, certain Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-67

doors/steps/thresholds, space for maneuvering, securement locations of a certain dimension, securement devices, seat belt and shoulder harnesses, priority seating signage, and interior circulation/support rail/lighting standards. In addition, some vehicles operated in fixed-route service must include an onboard public address system for stop announcements, a stop request system, and destination and route signs. Facilities Accessibility Any new facility to be used in providing public transportation services must also be accessible. If the entity alters an existing facility used to provide public transportation, the altered portions of the facility must be accessible. When the nature of an existing facility makes it impossible to comply fully with applicable accessibility standards, the alterations must be made accessible to the maximum extent feasible. States must ensure that subrecipients comply with ADA requirements when constructing or altering a facility. If there are parties other than the state or subrecipients responsible for portions of the facility, the state must ensure that they also comply with the ADA requirements. Each bus stop location should be chosen such that, to the maximum extent practicable, the area where a lift or ramp is to be deployed is accessible. Further, any bus stop improvements (i.e., installation of a shelter, landing pad/sidewalk) must meet ADA standards for accessibility. Subrecipients that undertake physical improvements to a stop location must ensure that the improved bus stop meets the minimum standards. General Service Requirements The DOT ADA regulations (49 CFR 37.161-167) detail specific general service requirements that apply across modes. The state must monitor subrecipients for compliance with applicable ADA service provision and training requirements. All public and private transportation providers must: • Allow service animals to accompany individuals with disabilities in vehicles and facilities. • Deploy the lift or ramp upon request, for standees as well as wheelchair-users. • Accommodate people who use a wide variety of mobility devices. Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-68

• Not deny an individual transportation because a vehicle’s securement system is unable to secure the mobility device. • Make public information and communications available in accessible formats. • Accommodate persons using respirators or portable oxygen. • Train operators in the use of accessibility equipment as well as sensitivity to people with disabilities. Other requirements are specific to fixed route services. These include: • Deploying lifts and ramps at any designated bus stop unless physical conditions preclude use of the lift. • Providing priority seating for people with disabilities including wheelchair securement areas. • Announcing stops along the route to orient passengers with vision disabilities, as well as providing a means for such passengers to identify which vehicle to board at stops shared by more than one route. Maintenance of Accessibility Features The state is responsible for ensuring subrecipient maintenance of ADA accessibility features for vehicles, facilities, and facility-related equipment used in public transportation service, even if the assets were not purchased or constructed with FTA funds. ADA has specific requirements for vehicle maintenance and operations. FTA does not prescribe a monitoring system or specific monitoring activities. Each state is responsible for developing and implementing a monitoring system that provides adequate assurance that ADA features are maintained in operative condition. Most states use a combination of monitoring mechanisms: periodic reporting, maintenance record review, visual inspections, and maintenance audits. Complementary Paratransit Requirements Each public entity operating a fixed route system must provide paratransit or other special service to individuals with disabilities that is comparable to the level of service provided to individuals without disabilities who use the fixed route system. All S. 5311 subrecipients operating public fixed route service, including private non-profit entities, must comply with this requirement as Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-69

they operate the service on behalf of the grantee (the state), a public entity. The state must monitor subrecipients that provide complementary paratransit service for compliance with applicable ADA requirements. The requirement to provide complementary paratransit service does not apply to intercity bus, commuter bus and rail, or university service. Further, route deviation service which is commonly operated in rural and small urban areas may be considered by FTA to be demand response service, so long as it has certain operating characteristics, and thus may not require ADA complementary paratransit service. Eligibility Determinations/Determination Process Each entity providing ADA complementary paratransit service is required to establish a process for determining ADA paratransit eligibility. FTA strictly limits eligibility to certain categories of individuals. Individuals may be ADA paratransit eligible on the basis of a temporary or permanent disability. The eligibility determination process may include functional evaluation or testing of applicants. Evaluation by a physician or health professional may be part of the process, but a diagnosis of a disability in and of itself does not establish eligibility. What is needed is a determination of whether, as a practical matter, the individual can independently use the regular fixed route transit service. Transit systems can allow conditional eligibility for those individuals who meet the criteria for some of their travel but not all of their travel. They may also require passengers to be recertified at reasonable intervals. The entity must process completed applications within 21 days of submittal, giving a written reason for the determination and notice of the right to an appeal. Service Criteria The DOT ADA regulations have detailed requirements for the provision of ADA complementary paratransit. They include: • Origin-to-destination service • Minimum service area (3/4-miles from fixed routes) • Service times (days and hours equivalent to those of fixed route service) Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-70

• Response time to reservation requests (on a “next day” basis during normal business hours, including acceptance on Sundays of trip requests for Mondays) • Unrestricted trip purpose • Fare limits (not to exceed twice the non-discounted fare for a similar fixed route trip) • Accompanying riders (e.g., personal care attendants or companions) Service Capacity The DOT ADA regulations specify that an entity may not limit the availability of complementary paratransit to eligible individuals. Any operational pattern or practice that has the effect of limiting availability is also prohibited (e.g., limited phone reservation capacity, substantial numbers of late pickups, trip denials, missed trips, or excessively long trips). If on a regular basis, the phone lines are busy, average or long phone hold times are excessive, call abandonment rates are high, or callers after a certain time (e.g., mid-morning) are told that they cannot reserve trips for the next day, the grantee is limiting the availability of service. The regulations allow grantees to negotiate pickup times with ADA eligible persons within a one-hour +/- window. If the grantee cannot schedule a ride that is within one hour before or after the desired departing time, the trip must be tracked as a denial. Paratransit trips should also be comparable in length to identical trips on the fixed route system. ADA Applicability to Other Types of Service Intercity Bus Service Operators of intercity bus service funded by FTA (under contract to a public entity or in the form of a subrecipient grant) must comply with public entity service requirements. Complementary paratransit service is not required for intercity bus service. Ferry Service Ferry service is subject to ADA regulations pertaining to passenger vessels (49 CFR Part 39). States must ensure that ferry services that they or their subrecipients operate or oversee comply with the requirements under this part. Module 1.17: Americans with Disabilities Act (ADA) LEVEL I - PAGE I-71

KEY CONCEPTS • Title VI Program • Notifying Beneficiaries of Protection under Title VI • Title VI Complaint Procedures and Complaint Form • Recording and Reporting Transit-Related Title VI Investigations, Complaints, and Lawsuits • Promoting Inclusive Public Participation • Limited English Proficiency (LEP) • Subrecipient Assistance • Subrecipient Monitoring • Title VI and Facilities Planning • Requirements and Guidelines for Fixed Route Transit Providers DEFINITIONS Discrimination: any action or inaction, whether intentional or unintentional, in any program or activity of a federal aid recipient, subrecipient, or contractor that results in disparate treatment, disparate impact, or perpetuating the effects of prior discrimination based on race, color, or national origin. Environmental Justice: the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. INTRODUCTION Grantees must ensure that no person shall, on the grounds of race, color, or national origin, be excluded from participating in, or be denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. The grantee must ensure that federally supported transit services and related benefits are distributed in an equitable manner. IMPORTANCE FOR STATE DOT STAFF In addition to establishing their own statewide Title VI programs, states are responsible for oversight of subrecipient compliance with Title VI requirements. States must assist their subrecipients in complying with DOT’s Title VI regulations, including the general reporting requirements. Primary recipients (including states) must monitor their subrecipients for compliance with the regulations. Importantly, if a subrecipient is not in compliance with Title VI requirements, then the primary recipient is also not in compliance. Module 1.18: Title VI LEVEL I - PAGE I-72

Limited English Proficient (LEP) Persons: persons for whom English is not their primary language and who have a limited ability to read, write, speak, or understand English. It includes people who reported to the U.S. Census that they speak English less than very well, not well, or not at all. Low-Income Person: a person whose median household income is at or below the U.S. Department of Health and Human Services (HHS) poverty guidelines. Recipients are encouraged to use a locally developed threshold, provided that the threshold is at least as inclusive as the HHS poverty guidelines. Minority Persons: (1) American Indian and Alaska Native, which refers to people having origins in any of the original peoples of North and South America (including Central America), and who maintain tribal affiliation or community attachment. (2) Asian, which refers to people having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. (3) Black or African American, which refers to people having origins in any of the Black racial groups of Africa. (4) Hispanic or Latino, which includes persons of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. (5) Native Hawaiian or Other Pacific Islander, which refers to people having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. National Origin: the particular nation in which a person was born, or where the person’s parents or ancestors were born. Service Standard/Policy: an established service performance measure or policy used by a transit provider or other recipient as a means to plan or distribute services and benefits within its service area. Title VI Program: a document developed by an FTA recipient to demonstrate how the recipient is complying with Title VI requirements. Direct and primary recipients must submit their Title VI Programs to FTA every three years. The Title VI Program must be approved by the recipient’s board of directors or appropriate governing entity or official(s) responsible for policy decisions prior to submission to FTA. For state DOTs, the appropriate governing entity is the state’s Secretary of Transportation or equivalent. Module 1.18: Title VI LEVEL I - PAGE I-73

LEVEL II PREVIEW Title VI Program FTA requires that all direct and primary recipients (including states) document their compliance with DOT’s Title VI regulations by submitting a Title VI Program to their FTA regional civil rights officer once every three years or as otherwise directed by FTA. FTA requires that all subrecipients submit Title VI Programs to the primary recipient from whom they receive funding in order to assist the primary recipient in its compliance efforts. The Title VI Program must include (in addition to other information) a copy of the Title VI notice to the public; instructions for filing a Title VI discrimination complaint; a list of any public transportation-related Title VI investigations, complaints, or lawsuits filed with the recipient; a public participation plan and summary of outreach efforts; a plan for language assistance; a table of the racial breakdown of non-elected transit-related bodies and a description of efforts to encourage minority participation on such bodies; efforts to ensure subrecipient compliance with Title VI; and any equity analyses for the location/construction of new facilities. Notifying Beneficiaries of Protection Under Title VI Recipients are required to provide information to the public regarding their obligations under DOT’s Title VI regulations and apprise members of the public of the protections against discrimination afforded to them. At a minimum, recipients must disseminate this information by posting Title VI notices on their websites and in public areas of their office(s). Recipients should also post Title VI notices at stations or stops, and/or on transit vehicles. Title VI Complaint Procedures and Complaint Form FTA requires all recipients to develop procedures for investigating and tracking Title VI complaints filed against them and to make their procedures for filing a complaint available to members of the public. Recipients must also develop a Title VI complaint form, and the form and procedure for filing a complaint must be available on the recipient’s website. Module 1.18: Title VI LEVEL I - PAGE I-74

Recording and Reporting Transit-Related Title VI Investigations, Complaints, and Lawsuits FTA requires all recipients to prepare and maintain a list of any active investigations, lawsuits, or complaints that allege discrimination on the basis of race, color, or national origin. Promoting Inclusive Public Participation Title VI and the DOT LEP Guidance must be integrated into each recipient’s established public participation plan or process. FTA expects states and subrecipients to seek out and consider the viewpoints of minority and LEP populations in the course of conducting public outreach and involvement activities. Limited English Proficiency (LEP) States and subrecipients must take reasonable steps to ensure meaningful access to benefits, services, information, and other important portions of their programs and activities for individuals who are limited-English proficient (LEP). Recipients must use the information obtained in a four factor analysis to determine the specific language services that are appropriate to provide. Grantees must develop a written Language Assistance Plan, or LEP Plan, to address the identified needs of the LEP population(s) it serves. Subrecipient Assistance States must assist their subrecipients in complying with DOT’s Title VI regulations, including the general reporting requirements. States should provide information, forms, and data to subrecipients (e.g. sample procedures for tracking and investigating Title VI complaints). Subrecipient Monitoring FTA requires the following activities of primary recipients: 1. Document processes for ensuring that all subrecipients are complying with reporting requirements. Module 1.18: Title VI LEVEL I - PAGE I-75

2. Collect Title VI Programs from subrecipients and review programs for compliance. 3. Request that subrecipients who provide transportation services verify that their level and quality of service is provided on an equitable basis (in response to a complaint or as otherwise deemed necessary). Title VI and Facilities Planning When developing certain types of facilities, including, but not limited to storage facilities, maintenance facilities, and operations centers, recipients are subject to Title VI requirements. This includes completing an equity analysis to compare the impacts of various siting alternatives, ensuring that the location is selected without regard to race, color, or national origin. Requirements and Guidelines for Fixed Route Transit Providers All fixed route providers must develop system-wide standards and policies for each mode of service they provide. These standards and policies are used to examine how services and amenities are distributed across the system, in an effort to ensure that all users have equal access. Larger transit systems (those operating 50 or more fixed route buses in urbanized areas with over 200,000 in population) are also required to collect and analyze demographic data, conduct a formal monitoring program, and conduct service and fare equity analyses. Module 1.18: Title VI LEVEL I - PAGE I-76

KEY CONCEPTS • Eligible/Incidental Use of FTA Funds • Half-Fare: Applicability, Eligibility, and Information • FTA Prohibition of Charter Service • FTA Prohibition of School Bus Operations • Oversight of Subrecipients School Bus Operations: Recipients may not engage in school bus operations exclusively for the transportation of students or school personnel in competition with private school bus operators. First included in the 1973 Federal-Aid Highway Act, Congress intended to protect private school bus operators that could be unfairly displaced by federally funded transit systems. This requirement applies to exclusive bus service to public and private schools. INTRODUCTION States and their subrecipients must comply with numerous service requirements and restrictions as conditions of FTA funding. Among others, these include the following. Ensuring Service is Open to the Public: S. 5307, 5311, and 5339 funds are available for expenditure for public transportation projects. S. 5311(f) funds are also available for intercity bus projects in other than urbanized areas. Services, vehicles, and facilities funded by these programs must be open to the public. S. 5310 program funds are available for public transportation capital projects that are planned, designed, and carried out to meet the specific needs of seniors and individuals with disabilities. Half-Fare: For fixed route service supported with S. 5307 assistance, fares charged elderly persons, persons with disabilities, or an individual presenting a Medicare card during off peak hours must not be more than half the peak hour fare. Charter Service: Recipients are prohibited from using federally funded equipment and facilities to provide charter service if a registered private charter operator expresses interest in providing the service. Some community-based charter services are allowed as exceptions. The charter bus prohibition protects private charter operators from unauthorized competition from FTA grant recipients. Module 1.19: Subrecipient Service Requirements and Restrictions LEVEL I - PAGE I-77

IMPORTANCE FOR STATE DOT STAFF States are responsible for ensuring that S. 5307, 5310, 5311, and 5339 funds, as well as capital facilities and equipment funded under the former S. 5309 program, are being used to support eligible projects and services. As a recipient of FTA funds, the state must ensure that it and its subrecipients comply with the prohibition against both charter service and exclusive school bus service. States are also responsible for oversight of S. 5307 subrecipient compliance with the half fare requirement. If the FTA determines that a recipient has engaged in a pattern of violations, it may withhold funding or bar the recipient from receiving funding in the future. DEFINITIONS Charter Service: transportation at the request of a third party for the exclusive use of a bus or van for a negotiated price; or transportation to the public for events/functions that occur on an irregular basis or for a limited duration (when the service is paid for by a third party or a premium fare is charged). Disability: a physical or mental impairment that substantially limits one or more of the major life activities of an individual; a record of such an impairment; or being regarded as having such an impairment. Exclusively: service that a reasonable person would conclude was primarily designed to accommodate students and school personnel, and only incidentally to serve the nonstudent general public. Incidental: the transportation of school students, personnel, and equipment in charter bus operations during off peak hours which does not interfere with regularly scheduled service to the public. Public Transportation: regular, continuing shared-ride surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income. Public transportation does not include intercity passenger Module 1.19: Subrecipient Service Requirements and Restrictions LEVEL I - PAGE I-78

rail transportation provided by AMTRAK; intercity bus service; charter bus service; school bus service; sightseeing service; courtesy shuttle service for patrons of one or more specific establishments; or intra-terminal or intra-facility shuttle services. Senior: an individual who is 65 years of age or older. Tripper Service: regularly scheduled mass transportation service which is open to the public and is designed or modified to accommodate the needs of school students and personnel, using various fare collections or subsidy systems. PREVIEW OF LEVEL II Ensuring Service Is Open to the Public States are responsible for ensuring that S. 5307, 5309, 5310, 5311, and 5339 funds are being used to support eligible projects and services. For capital facilities and equipment, this responsibility endures so long as FTA has a financial interest (i.e., until the end of the useful life of the facility or equipment). Services, vehicles, and facilities funded by these programs must be open to the public and meet the definition of public transportation. For monitoring purposes, states may require subrecipients to report information on the services provided and populations served on a periodic basis. They may also observe a subrecipient’s service during site visits. States must ensure that any incidental service provided by subrecipients does not interfere with the provision of transit service. For example, transit providers receiving assistance under S. 5310 or S. 5311 may coordinate and assist in providing meal delivery service for homebound persons on a regular basis if this service does not conflict with the provision of transit services or result in a reduction of service to transit passengers. Half-Fare Fares charged to seniors, persons with disabilities, and Medicare cardholders during off peak hours for S. 5307 funded fixed route transportation must not be more than half the peak hour fare. This requirement is only for S. 5307 recipients and subrecipients. However, states may have a policy that extends the requirement to S. 5311 subrecipients or others. Module 1.19: Subrecipient Service Requirements and Restrictions LEVEL I - PAGE I-79

The half-fare requirement is applicable to all fixed route services, whether the services are provided by the grantee directly, by a contractor, by a subrecipient, or by another entity. It does not apply to demand responsive or route deviation services, services that operate only during peak hours (e.g. express or commuter routes), services that operate only during off peak hours (e.g. lunchtime circulators), and services funded with other FTA assistance that do not use S. 5307 equipment or facilities. The half fare program, as applied, may require passengers to show proof of eligibility when they pay their fares. Examples of proof of eligibility include a driver’s license, Medicare card, special identification card, and ADA eligibility card. The grantee may require more than one piece of identification for determining age or disability-related qualifications. S. 5307 recipients and subrecipients must also communicate the half-fare policy both internally to their staff and to the public. Charter Bus Charter service is transportation provided by a recipient at the request of a third party for the exclusive use of a bus or van for a negotiated price. Except under limited exceptions and exemptions, recipients are prohibited from using federally funded equipment and facilities to provide charter services. Recipients of federal transit funding must enter into the Charter Service Agreement. The six charter service exemptions do not require any type of record keeping because they are not technically charter service. The exemptions generally apply when recipients are transporting their own employees, responding to an emergency, or providing charter service specifically for FTA program purposes. The six exceptions are contingent on specific reporting requirements and other restrictions. For four of the six exceptions, recipients must post quarterly electronic reports on the FTA Charter Registration Website. States are required to collect and submit these reports for their subrecipients. School Bus Recipients of federal transit funding are prohibited from operating exclusive school bus service. As a condition of funding, applicants must agree in writing that they will not engage in school bus operations exclusively for the transportation of students and school personnel, in competition with private school bus operators. Recipients can provide service to schools as part of their overall operations, as long as the schools are treated like any other origin or destination. The prohibition against the use of federally funded Module 1.19: Subrecipient Service Requirements and Restrictions LEVEL I - PAGE I-80

buses, facilities, and equipment does not apply to school tripper service. However, tripper service must “operate and look like all other regular service.” If the recipient is authorized to provide school bus service under one of three possible exemptions, it must enter into a different written agreement stating that it will notify FTA of any changes that might impact the exemption. School bus service allowed under the exemptions may not involve federally funded buses, equipment, or facilities. In addition, the non-federally funded buses, equipment, and facilities must be used incidentally, not interfering with their use for general public service. Module 1.19: Subrecipient Service Requirements and Restrictions LEVEL I - PAGE I-81

KEY CONCEPTS • FTA-Required Training for Subrecipients • Building Technical Capacity of Subrecipients • Rural Transit Assistance Program IMPORTANCE FOR STATE DOT STAFF States are responsible not only for training their subrecipients on FTA requirements, but also for ensuring that their subrecipients provide FTA-required staff training. INTRODUCTION FTA requires states to inform subrecipients of applicable federal requirements and provide technical assistance in meeting those requirements. Several FTA topic areas (including ADA and Drug & Alcohol) have specific requirements for subrecipients to train their own staff. States must ensure that subrecipients conduct this training. FTA requires states to certify that their subrecipients have the technical capacity to carry out proposed projects. Part of having technical capacity means having a well-trained, well-informed staff. States can build the technical capacity of their subrecipients by offering and sponsoring training on FTA requirements as well as essential topics in transit safety, operations, maintenance, and management. States are required to assist their subrecipients in complying with all FTA regulations; this may require training on the part of the state. For example, as noted in the module on Title VI, the state must have procedures in place to provide assistance to potential subrecipients applying for funding, including applicants that would serve predominantly minority populations. FTA provides Rural Transportation Assistance Program (RTAP) funds to assist states in supporting subrecipient training and technical assistance. Module 1.20: Training and Technical Assistance LEVEL I - PAGE I-82

FTA REQUIREMENTS AND RESOURCES FTA-Required Training for Subrecipients FTA requires states to inform subrecipients of applicable federal requirements and provide technical assistance in meeting those requirements. Several FTA topic areas have specific requirements for subrecipients to train their own staff. States must ensure that subrecipients conduct this training. • ADA - As described in the ADA module, ADA requires that each fixed route or demand-responsive service operator ensure that personnel are trained to proficiency, as appropriate, for their duties. • Drug & Alcohol - As described in the Drug & Alcohol module, specific training is required for safety-sensitive employees and their supervisors. • Safety - As described in the Safety & Security module, S. 5329 of MAP-21 requires that all recipients of FTA funding develop an agency safety plan that includes, among other elements, an adequately trained safety officer and a staff training program for operations personnel and personnel directly responsible for safety. FTA has not yet defined the qualifications for the safety officer or other details on plan requirements. Building Technical Capacity of Subrecipients FTA requires states to certify that their subrecipients have the technical capacity to carry out proposed projects. Part of having technical capacity means having a well-trained staff. States can build the technical capacity of their subrecipients by offering and sponsoring training on FTA requirements as well as essential topics in transit safety, operations, maintenance, and management. In addition to formal training, technical assistance may be provided through orientations, informal conversations, formal correspondence, on-site performance reviews, conferences, etc. Many states sponsor annual conferences, frequently in conjunction with the state transit association, at which training in federal requirements is provided. Module 1.20: Training and Technical Assistance LEVEL I - PAGE I-83

Rural Transit Assistance Program (RTAP) FTA provides RTAP funds to assist states in providing training and technical assistance to S. 5311 subrecipients. Most states have a state RTAP that supports S. 5311 subrecipients and sometimes other FTA subrecipients. Examples of state RTAP activities include state-conducted training, state-sponsored training, scholarships to send subrecipient staff to other training, state technical assistance provided via newsletter, state-provided technical assistance, and state-sponsored “roadeos.” Consult your state’s S. 5311 SMP for information about your state RTAP. SUPPLEMENTAL NOTES Numerous organizations offer training and technical assistance geared toward FTA subrecipients. FTA-Funded Training Institutes and Programs • Transportation Safety Institute (TSI) - funded by U.S. DOT, TSI offers intensive training courses for all transportation modes including public transit. Transit driver safety and train-the-trainer courses are offered for transit coach operations as well as paratransit. Other topics include drug and alcohol program training, collision prevention and investigation, and security and emergency management. http://www.tsi.dot.gov/ • National Transit Institute (NTI) - funded by FTA, NTI offers in-depth training on topics as diverse as ADA paratransit, safety and security awareness, human resources, procurement, financial planning, coordination, planning, technology, and more. Classes are offered throughout the U.S. as well as in distance learning formats. See www.ntionline.com. • Easter Seals Project ACTION (ESPA) - funded under a cooperative agreement with FTA, ESPA offers training in a variety of topics related to accessible transportation services, through both in-person and distance learning offerings. Examples include the eight-week Excellence in Service for Paratransit Managers course, the three-day Introduction to Travel Training course, and many topics related to enhancing accessibility under the People on the Move series. ESPA also offers numerous training and technical assistance resources through its publications clearinghouse. Information is available at www.projectaction.org. Module 1.20: Training and Technical Assistance LEVEL I - PAGE I-84

• National Center on Senior Transportation (NCST) - funded under a cooperative agreement from Agencies on Aging and FTA, NCST is implemented by Easter Seals in partnership with the National Association of Area Agencies on Aging. Distance learning opportunities are aimed at enhancing and coordinating transportation for older Americans. Information is available at www. seniortransportation.easterseals.com. • National RTAP - In addition to RTAP programs within each state, there is also a National RTAP program that is currently managed by the Neponset Valley Transportation Management Association. The national program supports state programs, develops training materials and information resources about rural public transportation, and provides technical assistance. Information and technical assistance is available through a toll-free hotline (888-589-6821) and online (www.nationalrtap. org). Other Recommended Training Resources • Community Transportation Association of America (CTAA) - CTAA offers training and professional certification in safe operations (the PASS program), dispatching, supervision, management, and vehicle maintenance and inspection. CTAA trains trainers and certifies trainers and drivers through the PASS program. In addition to its year-round training offerings, CTAA hosts an annual conference (EXPO, typically held in June) that provides numerous professional development workshops, as well as smaller topic-specific conferences. More information is available on the CTAA website (www.ctaa.org). • American Public Transportation Association (APTA) - APTA hosts numerous conferences that provide professional development sessions, with its annual Bus and Paratransit conference (typically held each May) the most relevant for S. 5311 and small urban S. 5307 subrecipients. APTA also hosts smaller, more specialized professional development events to focus on skill building needs, as well as “distance learning” opportunities such as webinars on topics of timely interest in the public transportation industry. More information is available on the APTA website (www.apta.com). • Your state’s transit association, which likely offers training at its annual conference and potentially at other times during the year. Your state may even conduct its RTAP-sponsored training in conjunction with the state transit association conference. Module 1.20: Training and Technical Assistance LEVEL I - PAGE I-85