FTA Section 5307 Urbanized Area Formula Program - Fuel and Electric Propulsion Costs Provision Update

In a January 20^th Dear Colleague letter to public transportation agencies nationwide, FTA Administrator Peter Rogoff announced a new provision under the Urbanized Area Formula Program (Section 5307) that will allow selected grantees to treat a portion of their fuel and electric propulsion costs as a capital maintenance item for reimbursement through this program in Fiscal Year 2012. The text of this announcement is included below.

Funding Flexibility to Cover Fuel Costs. Under the provisions of the FY 2012 Appropriations Act, the FTA may treat fuel costs for vehicle operations, including utility costs for the propulsion of vehicles, as a capital maintenance item for grants made in FY 2012 under the Urbanized Area Formula Program (Section 5307). However, the Act also caps the amount that may be used under this new authority by all grantees collectively at $100 million.  This new initiative does not provide grantees with extra dollars for these expenses over and above their usual apportionment.  Rather, it will provide grantees with additional flexibility in how they may use their usual apportionments in 2012.  FTA will be required to cap the level of flexibility that each participating grantee may use to ensure that the aggregate utilization nationwide does not exceed $100 million.  Treatment of these costs as capital maintenance items means that they may be eligible for reimbursement under this new authority at an 80/20 matching rate. In contrast, fuel costs are currently eligible for reimbursement as an operating expense for UZAs under 200,000 in population, but with a 50% match. Please note that we will distribute these funds by formula only to grantees that indicate a desire and ability to obligate them by the end of FY2012.  Please watch for an upcoming announcement with more details at www.grants.gov. 

This email is being sent to notify you that FTA is currently accepting statements of interest via www.grants.gov from designated recipients that want to be considered to utilize this provision. For Section 5307 grantees in urbanized areas over 200,000 in population, a single, consolidated response must be submitted by one designated recipient. For 5307 grantees in the areas under 200,000 in population, the State DOT is required to submit a single consolidated response for all urbanized areas in the state, since FTA apportions funds to the Governor for these areas.  The response should indicate the maximum amount of fuel and electrical propulsion costs that grantees within each urbanized area or State would submit for reimbursement under this provision. Only grantees that request use of this provision by the specified deadline will be permitted to utilize this provision in FY 2012. The amount allowed for each recipient will be determined based on the number of responses and the amount requested.

The application deadline has been extended until February 29^th, 2012. Please visit www.grants.gov and search for opportunity number “FTA-2012-002-TPM-FECM” to apply. For further information, please see the announcement on FTA’s website or contact Adam Schildge at adam.schildge@dot.gov or (202) 366-0778.

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