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This Policy Memorandum was Canceled June 23, 1999.


FHWA Policy Memorandums - Office of Engineering

ACTION: 1991 Intermodal Surface Transportation Efficiency Act (ISTEA) Implementation of Interstate Substitution Program

04/14/92
Associate Administrator for
Program Development
OPI: HNG-13
Regional Federal Highway Administrators
Division Administrators
Federal Lands Highway Program Administrator

Interstate Substitution funds may be used for projects eligible for funding under 23 U.S.C. 103(e)(4)(B). Section 103(e)(4)(G) provides that substitute highway funds may be used for substitute transit projects.

If substitute highway funds are to be used for a transit project, a State will follow the uniform procedures established for the use of Surface Transportation Program funds and Interstate Substitute Highway funds for transit projects. These procedures are described in a March 19, 1992, letter signed jointly by Mr. Brian W. Clymer, FTA Administrator, and Mr. Thomas D. Larson, FHWA Administrator. A copy is attached for your ready reference.

Original signed by:
Anthony R. Kane

Attachments

March 19, 1992

FEDERAL HIGHWAY ADMINISTRATION

Dear Colleague:

Recently, we wrote to you describing some of the new flexibility available in the use of Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) funds. We remain fully committed to see that this new flexibility is fully realized. Consequently, we have been working together to develop procedures to permit all program funds which have flexible uses to be used as expeditiously as possible.

Enclosed are descriptions of the procedures we have put in place to govern use of FHWA Surface Transportation Program and Interstate Substitution - Highways Program funds used for transit projects and use of FTA Section 9 Program funds for highway projects. We will be issuing similar guidance on use of FHWA Congestion Mitigation and Air Quality program funds for transit projects shortly.

We believe that these procedures should provide States and transit operators the maximum flexibility permitted under the law. Please do not hesitate to contact our field offices as questions arise on these procedures.
Original/s/by
THOMAS D. LARSON
Administrator, Federal
Highway Administration
Original/s/by
BRIAN W. CLYMER
Administrator, Federal
Transit Administration

Enclosure

PROCEDURES FOR USE OF
SURFACE TRANSPORTATION PROGRAM AND
INTERSTATE TRANSFER - HIGHWAYS FUNDS
FOR TRANSIT PROJECTS

Surface Transportation Program (STP) funds may be used for a wide variety of surface transportation activities, including both highway and transit projects. Interstate Substitution -Highways (IX) funds may be used for transit projects. Certain other FHWA funds, such as National Highway System Funds, may be transferred to the STP and then used for any STP-eligible activity. This paper outlines the steps which are to be taken in order to use these FHWA funds for a transit project.

TIP Development and Project Selection

A transit project intended to use STP or IX funds must be included in a Transportation Improvement Program (TIP) developed by the Metropolitan Planning Organization (MPO) and approved by the MPO and the Governor. Projects must also be included in the State Transportation Improvement Program (STIP). Projects outside metropolitan areas must be included in the STIP. The STIP must be approved by the Secretary no less frequently than biennially. Projects must then be selected for implementation in accordance with the requirements of Section 8 of the Federal Transit Act and Section 135 of Title 23, United States Code.

Once the project is selected for implementation, the recipient of the transit project funds (the "Grantee," as determined by State and local officials) completes all necessary preliminary steps. This includes preparation of necessary National Environmental Policy Act documentation.

Application

The FTA Grantee submits an application for the project to the cognizant FTA Regional Office. The completed application must be submitted on or before the start of a quarter for the application to be approved at the end of that quarter. At the same time, the Grantee notifies the State that it has submitted an application to FTA which will require a transfer.

The application should specify under which Federal Transit Act section the funds will be utilized and the application should be prepared in conformance with the requirements and procedures governing that section. Section 9 requirements and procedures will apply to urbanized area projects, Section 18 requirements and procedures to non-urbanized area projects and Section 16 requirements and procedures to projects for the purposes of that Section. Section 13(c) requirements will apply as may be called for under those programs.

FTA Regional Offices will receive and process the applications under the normal quarterly release process. Projects receive project numbers consistent with the purposes to which the funds will be applied.

Fund Obligation and Application Approval

If the FTA Regional Office determines that the project can be approved and if a State has not yet submitted a transfer request, the FTA Regional Office will notify the State and the grantee that the project is ready for approval. In order for the project to be approved that quarter, the State must request the transfer no later than 10 working days prior to the end of the quarter.

Once all steps have been completed, the FTA Regional Office will award the grant at the end of the quarter.

Project Execution

Once the project is approved, the Grantee executes the project using the normal FTA program procedures appropriate to the project in question. The FTA Regional Office will manage the project in the same manner as typical transit projects. Requests for reimbursement are sent to FTA as for other FTA projects.

Project Amendments

Project Amendments which require the use of additional STP or IX funds will undergo the same processing as an original request for funding.

PROCEDURES OF USE OF
SECTION 9 FUNDS
FOR HIGHWAY PROJECTS

Section 9 capital-only funds may be used for highway projects in Transportation Management Areas if 1) such use is approved by the Metropolitan Planning Organization (MPO), 2) such funds are not needed for investments required by the Americans with Disabilities Act (ADA), and 3) the funds used for the State or local share of such a project are eligible to be used for either highway or transit projects. This paper outlines the steps which are to be taken in order to use FTA Section 9 funds for a highway project.

TIP Development and Project Selection

A highway project intended to use Section 9 funds must be included in a Transportation Improvement Program (TIP) developed by the MPO and approved by the MPO and the Governor. Projects must also be included in the State Transportation Improvement Program (STIP). The STIP must be approved by the Secretary no less frequently than biennially. The projects must then be selected for implementation in accordance with the requirements of Sections 134 and 135 of Title 23, United States code.

Once the project is selected for implementation, the State completes all necessary preliminary steps including preparation of necessary National Environmental Policy Act documentation.

Once these steps are completed the State notifies the Section 9 Designated Recipient that the project is ready to proceed. The Designated Recipient then sends a request to transfer to the FTA Regional Office. The request should include a certification by the MPO that ADA needs have been met. The FTA Regional Office will process the request and make the required determination that ADA needs have been met.

Request for Authority to Proceed

The State submits a request for PS&E approval or a request to obligate to the FHWA Division Office including a certification that the State or local matching funds are eligible to be used for either transit or highway projects. FHWA Division Offices will receive and process requests as for other highway projects.

Project Execution

Once the project is approved, the State executes the project and the FHWA Division Office will manage the project using FHWA program procedures. Requests for reimbursement are sent to FHWA as for other FHWA projects.

Project Amendments

Project Amendments which require the use of additional Section 9 funds will undergo the same processing as an original request for funding.


This Policy Memorandum was Canceled June 23, 1999.


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