1. (1) A Qualified Entity shall adopt a written STIF Plan to establish a list of Projects for public transportation located within the Qualified Entity’s area of responsibility to guide STIF Formula Fund investments.

   1. (a) A STIF Plan must cover at least a Biennium, but it may include up to two Biennia subject to Commission approval.
   2. (b) A STIF Plan must address the transportation needs of people residing in or traveling into and out of the Qualified Entity’s area of responsibility.
   3. (c) A Qualified Entity that is a Mass Transit District or Transportation District with jurisdictional boundaries within a county or counties which are not Qualified Entities shall adopt a STIF Plan that considers the Public Transportation Services for the area outside of district boundaries but within the remainder of the county or counties.
   4. (d) A STIF Plan may be included in a Qualified Entity’s Local Plan or it may be a stand-alone plan.
   5. (e) A STIF Plan must include a description of the Qualified Entity’s method to sub-allocate STIF Formula Fund moneys to Public Transportation Service Providers and other potential Sub-Recipients and the process for developing the method.
   6. (f) A STIF Plan with an effective date prior to July 1, 2027 must contain an explanation of how the plan defines and identifies communities with a high percentage of Low-Income Households. A STIF Plan with an effective date on or after July 1, 2027 shall use the definition of “community with a high percentage of low-income households” in OAR 732-040-0005(11).

2. (2) A Qualified Entity’s STIF Plan must contain the following sections:

   1. (a) Descriptions of Proposed Projects: For each proposed Project, the STIF Plan must include the factors listed in section (3) of this rule.

   2. (b) Summary of Planned Expenditures: The STIF Plan must include a summary listing:

      1. (A) The total funding sought in the STIF Plan;
      2. (B) The total funding sought for each Recipient or Sub-Recipient; and,
      3. (C) For Qualified Entities that are Mass Transit Districts or Transportation Districts which do not share contiguous jurisdictional boundaries with a single county, the total funding sought by geographic area inside and outside the district’s jurisdictional boundary but within its area of responsibility.

   3. (c) Summary of Prior Expenditures on Specific Improvements: If the Qualified Entity received STIF Formula Funds in the preceding two Fiscal Years, the STIF Plan must include a summary of the amount of moneys allocated to fund each of the following:

      1. (A) Increased frequency of bus service schedules in communities with a high percentage of Low-Income Households;
      2. (B) The expansion of bus routes and bus services to reach communities with a high percentage of Low-Income Households;
      3. (C) Fund the implementation of programs to reduce fares for public transportation in communities with a high percentage of Low-Income Households;
      4. (D) The procurement of buses that are powered by natural gas, electricity or other low or no emission propulsion for use in areas with populations of 200,000 or more;
      5. (E) The improvement in the frequency and reliability of service connections between communities inside and outside of the Qualified Entity’s service area;
      6. (F) Coordination between Public Transportation Service Providers to reduce fragmentation in the provision of transportation services;
      7. (G) Implementation of programs to provide Student Transit Services for students in grades 9 through 12;
      8. (H) Implementation of programs that enhance services for older adults and people with disabilities; and
      9. (I) Support for the operation of existing service.
   4. (d) Summary of Current Projects: The STIF Plan must include a summary of Projects recommended by the Qualified Entity’s Advisory Committee for the duration of the STIF Plan, identified by Fiscal Year.
   5. (e) Advisory Committee Information: The STIF Plan must include a list of the Qualified Entity’s current Advisory Committee and the online or other location(s) where Advisory Committee materials may be reviewed as described in OAR 732-040-0030(4)(b). In addition, the STIF Plan must include a statement that the Qualified Entity consulted with its Advisory Committee as required by these rules and, if applicable, an explanation of why the Advisory Committee’s recommendation was not adopted by the Governing Body.
   6. (f) Recipient Accountability Methods: The STIF Plan must include a description of the methods the Qualified Entity will use to ensure that it complies with these rules and achieves the goals identified in the STIF Plan.
   7. (g) Sub-Recipient Accountability Methods: The STIF Plan must include a description of the methods and agreement or contract language that the Qualified Entity will use to oversee its Sub-Recipients, address deficiencies in Sub-Recipient performance, and to ensure that the Qualified Entity can accomplish the applicable requirements of these rules, including but not limited to audit and compliance requirements, accounting requirements, capital asset requirements and reporting requirements.
   8. (h) Remediation Strategies: If the Qualified Entity has submitted three or more Quarterly Reports within the past two years which indicate that it failed to substantially comply with its approved STIF Plan, the STIF Plan must include a description of the Qualified Entity’s strategies to ensure that it will substantially comply with the proposed STIF Plan.
   9. (i) Governing Body Adoption: The STIF Plan must include documentation that the Governing Body approved the STIF Plan prior to its submittal to the Agency. If STIF Formula funds will be jointly managed by two or more Qualified Entities, the STIF Plan must include documentation demonstrating each Governing Body’s commitment to joint management.

3. (3) The STIF Plan must include descriptions of each proposed Project as described below. A Qualified Entity shall include in its STIF Plan only Projects which appear in a Local Plan. For proposed Projects, the STIF Plan must describe:

   1. (a) Proposed funding level for each Project and a description of what the Qualified Entity intends to do with the STIF Formula Fund moneys it receives for the individual Project.
   2. (b) Whether the Project would improve or expand public transportation or maintain an existing service. For Projects that would maintain an existing public transportation service, the STIF Plan must specify the amount and percentage of each Project budget for this purpose.
   3. (c) Any anticipated benefits and discrete measurable outcomes associated with the Project and whether the Project advances each of the criteria listed at 732-042-0015(2)(c).
   4. (d) Identification of the Local Plan(s) from which each Project was derived and identification of the board, council, commission, or other governing body which approved the Local Plan.
   5. (e) The proposed Recipient or Sub-Recipient of the STIF Formula Fund moneys for that Project.
   6. (f) A full budget including fund sources and for yet-to-be obligated fund sources, the timing for funding decisions, if known.
   7. (g) For proposed Projects which are part of a larger multi-phase Project, the phasing plan including schedule and budget with known and potential funding sources identified.
   8. (h) The amount of moneys from the STIF Formula Fund distribution that would be allocated to fund each of the criteria listed at 732-042-0015(2)(c).
   9. (i) Identification of the extent to which the Project is consistent with Oregon Public Transportation Plan goals, policies, and implementation plans.
   10. (j) At least one Project described in the STIF Plan must implement a program(s) to provide Student Transit Services for students in grades 9 through 12, if practicable, and allocate at least one percent of the Qualified Entity’s estimated STIF Formula Fund disbursement to that program(s) each year. In this instance, a program(s) is considered practicable when Public Transit Services within the Qualified Entity's area of responsibility can be feasibly and efficiently used by students in grades 9 through 12. If the Qualified Entity determines that it is not Practicable to identify such a Project or to allocate funding for this purpose, it shall specify in its STIF Plan the reason(s) for its determination.

4. (4) A STIF Plan may include an Operations Reserve Project or projects consisting of STIF Formula Fund moneys that may be transferred to any operations Project in the STIF Plan in the event of significant, unexpected declines in transit operations revenue, subject to the following provisions:

   1. (a) A STIF Plan may include one Operations Reserve Project for the Qualified Entity and one for each Sub-Recipient that has a project in the STIF Plan. An Operations Reserve Project may also be shared between a Qualified Entity and one or more Sub-Recipients.
   2. (b) If a STIF Plan includes an Operations Reserve Project for the Qualified Entity and one for each Sub-Recipient, then each Operations Reserve Project shall not exceed 12.5% of each entity’s operations expenses budgeted for use in the STIF Plan Period.
   3. (c) If an Operations Reserve Project is to be shared between a Qualified Entity and one or more Sub-Recipients, it shall not exceed 12.5% of the total operations expenses budgeted for use in the STIF Plan period.

5. (5) A STIF Plan may include one or more Plan Contingency Projects consisting of STIF Formula Fund moneys that may be used for Project costs that were not foreseen at the time the Qualified Entity submitted a STIF Plan to the Commission for approval, subject to the following provisions:

   1. (a) The total amount of funding included in all Plan Contingency Projects may not exceed 15% of the total expenditures budgeted for the STIF Plan period or an amount set by the QE's governing body, whichever is lower. For purposes of this subsection, total expenditures do not include STIF Formula fund moneys budgeted for Planned Carry Forward Projects and Operations Reserve Projects described in this rule.
   2. (b) Plan Contingency Project moneys may not be used for an Operations Reserve Project or a Planned Carry Forward Project.
6. (6) A STIF Plan may include one or more Planned Carry Forward Projects for capital improvements that cannot be funded in a single STIF Formula Fund funding cycle or for bond payments on the acquisition of a Capital Asset. A Qualified Entity must specify in its STIF Plan the reason for the Planned Carry Forward Project and the deadline by which the Qualified Entity intends to expend all Planned Carry Forward Project funds. The Qualified Entity may not carry forward Planned Carry Forward Project funds beyond the deadline without Agency approval.

7. (7) If during a STIF Plan period the rate of the payroll tax imposed under ORS 320.550 is increased or decreased by more than 50%, the Agency may:

   1. (a) Temporarily increase the percentage caps on the amount of funding that a Qualified Entity is allowed to include in its STIF Plan for Operations Reserve Projects and Plan Contingency Projects; or
   2. (b) Temporarily increase the percentage of Unused Project funds that trigger the requirement for a Qualified Entity to provide the Agency with a written report of the reason the funds were not spent under OAR 732-042-0035(4).

Statutory/Other Authority

ORS 184.619, 184.758 & 184.761

Statutes/Other Implemented

ORS 184.751-184.766

History

PTD 2-2026, amend filed 01/22/2026, effective 01/22/2026
PTD 3-2022, amend filed 05/24/2022, effective 07/01/2023
PTD 1-2022, amend filed 01/25/2022, effective 01/25/2022
PTD 5-2020, amend filed 09/23/2020, effective 09/23/2020
PTD 1-2018, adopt filed 06/26/2018, effective 07/01/2018