September 5, 2014
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FTA Circular Would Change Fund Availability for Midlife Buses

FTA has released a ­proposed circular that changes the definition of which projects and activities may be funded under the federal Bus and Bus Facilities program (49 U.S.C. 5339), established by MAP-21. A notice regarding the ­circular appeared in the July 30 ­Federal Register.

The document states that eligible capital projects include those to replace, ­rehabilitate, and purchase buses and related equipment, and those to construct bus-related facilities. This includes bus rebuilds, defined by FTA as “a reconditioning at the end of a vehicle’s useful life that creates additional useful life,” but it excludes overhauls, defined as “a form of preventive main­tenance involving ‘systematic replacement or upgrade of systems whose useful life is less than the useful life of the entire vehicle in a programmed manner.’ In contrast to a rolling stock rebuild, an overhaul does not extend the useful life of the vehicle itself.”

The circular also states that planning activities, preventive maintenance, and mobility management are not eligible expenses under the new definition, and “public art” is no longer an eligible associated transit improvement, but that incorporation of design and artistic ­considerations into public ­transportation projects may still be an allowable cost as long as it is an integral part of the activity.

FTA is accepting comments on the circular through Sept. 29. Comments, identified by the docket number FTA–2014–0018, can be submitted electronically through the Federal eRulemaking Panel. APTA encourages its members to submit comments.

For more information, contact Jim LaRusch.

FTA Publishes Joint Development Guidance
FTA also recently published a circular that provides guidance to recipients of FTA financial assistance on how to use FTA funds or FTA-funded real property for joint development, effective Oct. 1.

Circular 7050.1 incorporates provisions of MAP-21 and advances the goals of 49 U.S.C. 5315 by informing FTA recipients of opportunities for private sector participation in public transportation projects.

The circular is available here. Technical assistance is available from regional FTA offices.
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